Data published by YouGov in August 2022 showed that as of the previous month, Britons were using a whopping £3.5bn worth of overdrafted funds from their bank accounts. Each month, between 25% and 30% of people dip into their overdrafts, generally just for a few days leading up to payday.

It’s hardly surprising with the ongoing cost of living crisis and energy bills rising rapidly. If you’re one of those people who struggles to save, maybe you could use a few tips to help budget better. One popular method is the 50 - 30 - 20 rule, which was introduced by American senator Elizabeth Warren in a book entitled All Your Worth: The Ultimate Lifetime Money Plan. It splits your income into three categories to help manage it better.

What do the numbers mean then? How can I apply the rule? What if my needs add up to more than 50% of my income? In under 3 minutes, we answer your questions!

To listen to more episodes, click here:

Should I walk 10000 steps a day?

What is a vertiport?

What is productivity paranoia?

A Bababam Originals podcast. Written and produced by Joseph Chance.

In partnership with upday UK.

Learn more about your ad choices. Visit megaphone.fm/adchoices