Three is the magic number...

Most financial experts have a version of “magic numbers” that tell you how to split your income:

• 50% on needs,

• 30% on wants,

• 20% on future you.

Or maybe it's 65% on fundamentals, 20% on fun, 15% towards investments and long-term savings.

These frameworks are sensible—and they do work.Unless you're a single mum or woman in your mid-40s, navigating life on one income that hasn’t grown the way it should have because you’ve spent time raising children, caring for others, or stepping back from the workforce.

When I first moved into my own rental after my divorce, my "needs" took up more than 65% of my income. I was barely managing 30% for the rest—and 15% for investing? Absolutely not.

So how do you budget when it feels like there’s nothing left?

Step 1: Financial Audit

Start by reviewing everything. Scrutinise every direct debit, every standing order, and every automatic renewal. Cancel anything unnecessary or duplicated.

Debt:If you have debts, try negotiating for a lower rate or take advantage of low-interest balance transfer offers. Consolidate only if:

• You won’t rack up more debt, and

• The consolidation significantly reduces your interest payments or monthly outgoings.

  
  

Step 2: Budget What’s Left

Cover your essentials—rent/mortgage, utilities, council tax, and other must-pay bills.

Take the amount that’s left and split it between “wants” and “future you”. You decide the split.

Wants include things like:

• Hair and beauty

• Holidays

• Christmas or birthdays

Use savings envelopes—digital or physical—to break these down. Work out the total cost of each over the year, divide by 12, and set that amount aside monthly.

Future You could start with just 10%. If that’s too much, then try 9%, 7%, even 3%. The point is starting something.

Step 3: Invest in Future You

Before anything else: build an emergency fund. If you don’t have one, this is your top priority. Even £500 set aside can protect you from unexpected expenses derailing your progress.

Once you have emergency savings, you can start planning for the longer term:

• For goals within 5 years → use a high-interest savings account.

• For goals beyond 5 years → look into investing. Over the long term, investing allows your money to grow in ways savings accounts simply can’t match.

Investing Basics: What You Really Need to Know

Let’s demystify it. Investing isn’t just for bankers or men in suits. It’s not about gambling your savings or needing thousands of pounds. It’s simply putting your money to work so it grows over time.

If you’ve never invested before, you might be thinking:

• “It’s too risky.”

• “I don’t know enough.”

• “I’d need a financial adviser or stockbroker to do it for me.”

Here’s the truth:

• You can start investing with as little as £1.

• You don’t need a broker—platforms like Vanguard, Moneybox, or AJ Bell let you open an account online.

• You can choose simple, low-risk investments like index funds or Stocks & Shares ISAs that spread risk and grow steadily over time.

• You can’t afford not to invest—inflation means your cash savings will lose value if left sitting too long.

What’s really stopping many of us?

Lack of knowledge – No one taught us this stuff.

Fear – We’re scared to get it wrong.

Assumptions – We think it’s for the rich or something men do.

Why Women Aren’t Investing — And Why We Should

Despite being great savers, women in the UK are significantly less likely to invest than men.

Fewer than 1 in 5 women (18%) currently hold investments, compared to 26% of men. The gender investing gap means women miss out on tens of thousands over a lifetime. But when women do invest, studies show we’re often more consistent, more patient, and actually outperform men over the long term.

It’s not about beating the stock market. It’s about getting started. Even £25 a month into a low-cost index fund can build serious momentum over time, thanks to compound growth.

Final Thoughts

Start small. Budget honestly. Save consistently. And invest—even if it’s just a little. You don’t need to get it perfect. You just need to begin. Future you will thank you.