SUPER saver Caitlin Kilday has saved £4,000 over the year for her wedding thanks to two money-saving tricks.
Caitlin has rigidly stuck to the “budget binder method” and the 50/30/20 rule – and the hard work has paid off for her finances.
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The HR worker, 25, from East Ayrshire, keeps on track by budgeting her money on a weekly basis, and spending her cash using the two money methods.
She’s been doing this for years, and shows others how to do it on her TikTok account under the handle “LifeWithCaits”.
“I wanted to make myself more financially stable, and to make sure I had the money to do all the things I wanted to do,” Caitlin told The Sun.
She’s saved £2,000 from using the budget binder method, and £2,000 from the 50/30/20 rule – here’s how she did it.
Budget binder method
More commonly known as cash stuffing, the budget binder method sees you withdraw cash from your account and allocate it to different spending pots.
Caitlin pays for major bills like her mortgage and council tax via direct debit.
The remaining money she has is taken out in cash on a weekly basis at around £100 to £120.
She dishes the cash out between various different envelopes – including food shopping, eating out, petrol, and any events she has coming up.
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Whatever money is leftover at the end of the week, usually between £20 to £40 a week, is put into Caitlin’s “savings” binder.
“Each month I put the money into my Clydesdale savers account which has a 2% interest rate, which means my savings build up more,” she said.
“It also means the money is out of sight and out of mind, and it’s safer not to have money lying around the house.”
Over the year, Caitlin has saved up £2,000 from using the method, and has an ambitious goal to raise another £3,000 by April next year, when her wedding is.
“It’s going to be a challenge, but with winter we’re not going out anymore so that’s all going towards the savings,” she said.
The 50/30/20 goal
This method sees you put 50% of your monthly income towards covering your “needs” – which is your bills and living costs.
While 30% goes towards your “wants”, such as hobbies and shopping, and the remaining 20% for your debts.
Caitlin uses this method to boost her savings – it’s helped her put away £2,000 this year.
She says the key to keeping to the rule is being organised.
“It’s quite hard to do it,” she said.
“I sit down at the end of every month and plan for the next month.
“I also sit down on a Sunday and plan for the upcoming week.”
But it might not be the most realistic method for some savers.
With bills soaring under a cost of living crisis, many are spending much more than 50% of their income on food, energy and more.
“The most important thing is, in today’s climate, that you just focus on paying bills and getting by – anything extra you can put aside, but just try and do your best,” Caitlin said.
If you’re able to save cash, remember to put it in a savings account that pays interest.
If not, it means your hard-earned cash is losing value day due to soaring inflation.
