Paul Slot, director of Octogen Group says, “To help resolve these problems, we've introduced the system, which is easy to apply, effective and helps consumers to know where they spend their money and which bills are a priority.”
A household budget usually comprises:
Adding up the 35:25:35, gives 95%, which means there is 5% left, which should be allocated to an emergency saving fund (as opposed to traditional saving which falls into the financial services category of income spent).
If consumers apply these budget principles, they will be able to track exactly where their money is going. Such discipline can significantly improve their spending patterns and possibly reduce the number of over-indebted consumers. Should consumers discover that they are spending a higher percentage of their budget, they should consider contacting a financial wellbeing specialist.