Category 05 · 10 frameworks
Money Management & Financial Wellbeing
Educational methods for budgeting, saving, handling debt and building a financial cushion; this is not financial advice.
Educational content only, not financial advice. For decisions about investments, pensions or debt, speak to a regulated financial adviser or a free service such as MoneyHelper.
01
50/30/20 Budget
Elizabeth Warren and Amelia Warren Tyagi (All Your Worth) Split your after-tax income into roughly 50% for needs, 30% for wants and 20% for savings and extra debt repayments. 02Pay Yourself First
Long-standing personal finance principle; popularised by George S. Clason (The Richest Man in Babylon) Set aside savings as soon as you are paid, before spending on anything else. Saving becomes a fixed commitment rather than whatever is left over. 03Zero-Based Budgeting
Peter Pyhrr (developed for business at Texas Instruments); widely adapted for personal budgeting Give every pound of income a job until income minus planned spending, saving and repayments equals zero. 04Debt Snowball
Popularised by Dave Ramsey Pay off debts from the smallest balance to the largest, regardless of interest rate. Clearing small debts quickly builds momentum. 05Debt Avalanche
Widely used debt repayment method; no single originator Pay off debts from the highest interest rate to the lowest. It usually minimises the total interest you pay. 06Emergency Fund
Widely used personal finance practice A dedicated pot of easily accessible savings for unexpected costs or loss of income. It reduces the need to borrow when something goes wrong. 07Sinking Funds
Widely used personal finance practice Save small regular amounts towards known future expenses, such as car repairs or holidays, so they do not come as a shock. 08Real Hourly Wage
Vicki Robin and Joe Dominguez (Your Money or Your Life) Calculate what you truly earn per hour once work-related costs and time are included. It reframes spending in terms of the hours of life it costs. 09Rule of 72
Mathematical rule of thumb; earliest known reference in Luca Pacioli's Summa de arithmetica (1494) Divide 72 by an annual percentage rate to estimate how many years it takes for a sum to double through compounding. 1030-Day Rule
Widely used personal finance practice; no single originator When you want to buy something non-essential, wait 30 days before deciding. Many impulse wants fade in that time.Not sure where to start?
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