A personal finance enthusiast has taken to TikTok to share his advice on how to budget an average UK salary of £30,000.
Brian, from Gloucestershire, goes by ‘frugal spender’ on TikTok and has over 87,000 followers that watch his money advice clips.
His other videos touch on ‘pay day must do’s,’ how to ‘invest for your future’ and what the ‘biggest money lies’ are.
In this video, the personal finance expert walks through the park as he says: ‘Here’s how I would budget the average salary in the UK of £30,000.’
He went on to explain the 50/20/30 rule, which is a guide to distributing your income and it works to give you a clear sense of where your financial priorities lie.
Brian, from Gloucestershire, has taken to TikTok to share his advice on how to budget an average UK salary of £30,000
The idea is that as much as 50 per cent should to be spent on essentials, 20 per cent ferreted away for savings and the remaining 30 per cent dedicated to lifestyle.
With information flashing up on the screen, Brian says: ‘Now as you can see here, the (monthly) take home pay after tax and pensions is just under £2,000, let’s call it £2,000.’
He explains that his way of budgeting involves the ’50/30/20 rule’:
’50 per cent of my take home pay goes to needs, 30 per cent goes to wants and 20 per cent goes to savings.
‘So firstly needs, 50 per cent of £2,000 is £1,000, so I’ll be spending £1,000 on my mortgage, my car, my petrol, my food, everything I need to survive.’
He adds that anything more than that means he’s ‘living beyond my means.’
Next, he goes on to talk about ‘wants,’ which he allocates 30 per cent of his monthly income to.
The finance expert says: ‘I’d allocate 30 per cent which is £600. This is towards things that I want, it’s not necessities, it’s the things I could cut out if I needed to.
With information flashing up on the screen, he says ‘Now as you can see here, the (monthly) take home pay after tax and pensions is just under £2,000, let’s call it £2,000’
‘Things like gym memberships, subscriptions, TV, that sort of thing.’
Finally, he advises that the final 20% of your income should go towards your ‘short, medium and long term savings and investment goals,’ which is £400 for a £30,000 salary.
The video has racked up over 1.2million views and over 2,500 commenters.
However, a lot of people in the comments were not too impressed with the expert’s advice.
However, a lot of people in the comments were not too impressed with the expert’s advice and questioned how it would work in practicality
One person wrote: ‘Yeah if only that worked for the rest of us! My bills are 70 per cent without food and internet.’
Others were in agreement, writing ‘Unfortunately with the interests rate rises, many peoples mortgages have gone up to well over a grand’ and ‘He’s living in dreamworld if he thinks most people can pay off mortgage, petrol and food for £1,000.’
Further down in the comments, the TikToker clarified that ‘the rule doesn’t work if you are struggling with necessities yes, but for average and above- it stands.’
Another viewer said ‘Wish I got paid £50k’ to which the expert replied ‘You can make it happen…’