Anyone with a bank account urged to follow ‘65 20 15’ rule | Personal Finance | Finance
Look after your pennies, and then the pounds will look after themselves (Image: Getty)
Saving money is becoming an increasingly difficult task as the rising cost of living puts pressure on household budgets. If anything, this makes looking after our pennies more important than ever, and many Brits are searching for practical ways to scrimp and save. Financial expert Nischa Shah may have just revealed the best one yet, and it’s surprisingly simple.
People are being urged to adopt a simple income-splitting rule to reboot their budgeting and boost long-term financial security. She calls this money-saving hack ’60-20-15′, a practical starting point for anyone with a bank account right now.
During an episode of The Diary of a CEO podcast with Steven Bartlett, Shah explained how the rule is based on your net income, meaning the take-home pay you receive after taxes and National Insurance — so no, not your gross salary.
She recommended about 65 per cent of that net income should be allocated to your core living costs. These include all the essentials like mortage or rent, utilities and groceries.
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The expert then says 20 per cent should be set aside for what she calls “fun spending” like entertainment, events and personal hobbies.
“That’s for tickets, pilates classes, all that should make up about 20 per cent of your take-home pay”, she says.
The remaining 15 per cent is earmarked for your future self, including savings, investments and paying off any extra debts.
Shah emphasises that this pot is to “plant seeds for tomorrow’s you” and is the most important way to build financial resilience and wealth over time.
It’s not always as easy as this, she recognises: “If you’re living closer to pay cheque to pay cheque, those numbers might look slightly different, start with what you can” even if that means saving just 2 to 3 per cent at first.
“Great advice,” posted one fan in the replies, while a second added: “This habit building actually works and you can reap the rewards.”
A third said: “Loving the idea of planting seeds for a future you, love it!”
The need for disciplined saving is highlighted by recent UK savings data. According to Aldermore Bank’s Savings Tracker, the UK savings ratio — the proportion of personal income saved — stood at about 8.5 per cent in 2024, with the average Brit saving roughly £2,274 over the last 12 months.
Finder’s 2026 data shows the average UK adult has around £19,214 in savings, yet 39 per cent have just £1,000 or less saved, and 16 per cent have no savings at all — a precarious position if unexpected costs arise.
NatWest’s Savings Index puts the average monthly savings at about £226, suggesting many Britons are putting money aside but still fall short of Shah’s widely recommended financial targets.
