💷 The 50/30/20 Rule

Hey fellow doctors and subscribers,

If you’ve ever looked at your bank balance mid-month and thought, “How is this already disappearing?” — you’re definitely not the only one.

Between irregular shifts, student debt, and the cost of just existing in cities like London… budgeting as a junior doctor can feel like trying to juggle with your eyes closed.

But here’s one rule that genuinely helped me feel more in control of my money — without spreadsheets, apps, or tracking every single meal deal.

It’s called the 50/30/20 rule, and it’s about giving your income a job before it disappears.

💷 The 50/30/20 Rule

This framework splits your take-home pay into three buckets:

🧾 50% — Needs
The essential stuff: rent, bills, groceries, travel, minimum debt payments.
These are non-negotiables — they get sorted first.

🔸 Just starting out or living in a high-cost area (eg London)?
Your needs might go over 50%. That’s totally fine.
This rule isn’t about perfection — it’s about awareness.

🍕 30% — Wants
Eating out. Netflix. Coffee. A weekend trip. Gym. Gadgets.
You don’t need to cut these out — just keep them intentional.

🏡 20% — Savings / Future You
This is where the magic happens:

• Build an emergency fund

• Overpay loans

• Save for a house deposit

• Invest (ISA, LISA, etc.)

• Top up a pension

Even £100 a month makes a difference — and £400+ starts to snowball fast.

💡 Real Example:

Let’s say your monthly take-home pay is around £2,400 (fairly typical for a junior doctor):

• £1,200 → Needs

• £720 → Wants

• £480 → Savings / Debt Repayments / Investing

That last part adds up to £5,760/year — quietly working behind the scenes to give you more options later.

Why this rule works:

✅ It’s quick
✅ It’s flexible
✅ It works whether you’re FY1 or ST6
✅ It gives you structure without the guilt

Takeaway:
Budgeting doesn’t have to mean saying ‘no’ to everything.
This rule helps you say yes — more intentionally.

It turned my mindset from:
"I’m bad with money…”

to
"I actually have a system that works for me.”

If this helped, just hit reply — I’d love to hear if you use something similar or do it differently.

Talk soon,
Kyaw

P.S. You can also follow along on my Facebook page (https://www.facebook.com/people/Wealth-for-UK-Junior-Doctors/61572565967612/) where I share more no-fluff money tips for doctors.