With the new year rolling in heavy and fast, many of us share the same goal: saving money, while still enjoying life. Between bills, subscriptions, social plans and everyday essentials, budgeting can feel overwhelming—but it doesn’t have to mean living on the bare minimum.
Over the years, I’ve found ways to be smarter with money, save consistently, and still enjoy the little luxuries. Below is my tried-and-tested approach to budgeting and saving money realistically, without cutting out everything fun.
If you’re looking for practical budgeting tips that actually work, this one’s for you.
Tracking Your Finances: The Foundation of Smart Budgeting
For me, the best way to understand my finances is visually. Laying everything out clearly allows me to see exactly what’s coming in and what’s going out over the month.
I personally track my budget in my phone notes because it’s simple and always accessible—but there’s no right or wrong method. A notebook, Google Docs, spreadsheets, printed templates in a folder with receipts… whatever works best for you is the best option.
The key is consistency and clarity.
How I Lay Out My Monthly Budget
Each month, I break my finances down into clear categories so nothing gets missed:
- Total income for the month (your actual wage after tax)
- Bills
I list these as a total, but you can break them down individually if you prefer. I split bills with my partner and send my share to a joint account, so I note the total amount and dates payments leave my account. - Subscriptions
Netflix, Spotify, gym memberships—again, dates are helpful here. - Other monthly payments
This includes savings for Christmas, house deposits, holidays, or sinking funds. - Credit card repayments
Even if it’s a minimum payment or standing order, I keep this separate so I can clearly see my financial commitments. - Weekend spending
I break this down by weekend depending on plans (e.g. Weekend 1: dinner out, Weekend 2: trip away). - Activity spending
Any planned events in chronological order—drinks with work, birthdays, day trips, etc. - Other spending
More specific, one-off items like gifts, beauty appointments, home bits. - Minimum savings goal
I deduct savings last, with a minimum amount in mind, then adjust depending on what’s left over.
Once everything is planned, I move each amount into my savings account one by one, keeping it separate from my everyday spending. This makes it incredibly clear how much “free” money I actually have—and stops accidental overspending.
Setting Money Aside at the Start of the Month
One of the biggest budgeting habits I swear by is setting money aside as soon as I’m paid (or planning it the day before payday).
If I know I’m going out for drinks, buying a present, or need a new outfit, I put that money aside immediately. I always budget for the maximum I think I’ll spend—anything left over is a bonus.
This approach:
- Prevents panic spending later in the month
- Helps you see what’s truly affordable
- Makes it easier to adjust budgets before money runs tight
If your plans feel like they’re stretching your finances, this system highlights it early—giving you time to tweak things realistically.
Savings Pots: A Game-Changer for Money Management
Savings pots have honestly been a life-saver. If you haven’t come across them yet, they’re a feature some banks offer that allow you to split your savings into smaller, labelled pots—without needing multiple accounts.
They’re perfect for:
- Christmas savings
- Holidays
- House deposits
- Pets
- Emergency funds
You can add to each pot gradually and keep everything organised, which makes saving feel far less overwhelming. Some banks even offer separate interest rates per pot, helping your money grow.
If your bank doesn’t offer this yet, you can still replicate the system by using multiple savings accounts or tracking pots manually in your notes.
If you’re looking for a bank that does offer savings pots, Monzo is very easy to set up and fully online.
(Not sponsored… yet 😉)
Saving for Big Events (Without the Financial Stress)
One of my biggest budgeting tips is saving little and often for big events throughout the year.
- Christmas presents? £20 a month = £240 by December
- Holidays? Split savings across multiple months
- Weddings, birthdays, trips? Start early and spread the cost
By the time the event rolls around, you’ve already saved most of what you need—without taking a huge financial hit all at once.
Again, savings pots make this incredibly easy, but a single savings account with clear tracking works just as well.
General Savings: Smart Spending Over Sacrificing
In my experience, the biggest way to save money long-term is smart spending, not extreme restriction. Money is finite—but thoughtful choices allow us to still enjoy life.
Some small habits that make a big difference for me:
- Making coffee at home
- Taking lunch into work
- Using a reusable water bottle
- DIY-ing where possible
- Shopping second-hand (charity shops, Vinted)
- Setting “no-spend days” to stay mindful
These small changes add up over time. As the saying goes: look after the pennies and the pounds will look after themselves.
Final Thoughts on Budgeting & Saving
Budgeting doesn’t have to be restrictive, boring, or overwhelming. With a clear system, realistic planning, and small consistent habits, saving money can feel empowering—not limiting.
If you have any budgeting tips of your own or want to share what works best for you, feel free to leave a comment or check out my socials.
Thanks so much for reading—and happy saving.
Amy x
