Budget Examples: How 3 People with Different Incomes Spend Their Money
Ever wondered how other people actually spend their money?
Whether you’re living paycheque to paycheque or aiming for early retirement, understanding how others manage their budgets can provide practical inspiration — and a healthy dose of financial perspective.
In this guide, we share examples of three individuals at very different stages in life and income levels. You’ll see how they divide their monthly income into essentials, lifestyle spending, and longer-term goals.
Meet Our Budgeters:
| Name | Age | Net Monthly Income | Occupation | Location |
|---|---|---|---|---|
| Sam | 23 | £1,400 | Retail Assistant | Manchester |
| Alex | 31 | £2,800 | Marketing Manager | Bristol |
| Priya | 40 | £5,200 | IT Consultant (Freelance) | London |
Budget Breakdown: Sam – £1,400/month
Goal: Save for a house deposit while managing day-to-day essentials on a modest salary.
“Budgeting keeps me sane. I meal prep to save on food and use savings pots in my banking app to separate goals.” — Sam
| Category | Amount |
|---|---|
| Monthly Income (after tax) | £1,400 |
| Essential Bills (Rent, Utilities, Mobile) | £585 |
| Spending Pots (Food, Travel, Subscriptions, Entertainment, Misc) | £435 |
| Other Financial Goal Pots (Savings, Emergency Fund) | £150 |
| Total Budgeted | £1,170 |
| Buffer/Leftover | £230 |
Budget Breakdown: Alex – £2,800/month
Goal: Balance current lifestyle with smart long-term planning.
“I split my savings between an ISA and a pension. I still want to enjoy life now, so I budget fun money in too.” — Alex
| Category | Amount |
|---|---|
| Monthly Income (after tax) | £2,800 |
| Essential Bills (Rent, Utilities, Mobile) | £1,290 |
| Spending Pots (Food, Travel, Subscriptions, Leisure, Misc) | £810 |
| Other Financial Goal Pots (ISA, SIPP, Emergency, Holidays) | £700 |
| Total Budgeted | £2,800 |
Budget Breakdown: Priya – £5,200/month
Goal: Save for early retirement while supporting her family and maintaining a balanced lifestyle.
“I’m focused on financial independence, so retirement planning is a big priority. I also send money home each month — that’s non-negotiable.” — Priya
| Category | Amount |
|---|---|
| Monthly Income (after tax) | £5,200 |
| Essential Bills (Mortgage, Utilities, Car, Travel) | £2,200 |
| Spending Pots (Groceries, Childcare, Family Support, Lifestyle) | £1,600 |
| Other Financial Goal Pots (ISA, SIPP, Holidays, Charity) | £1,400 |
| Total Budgeted | £5,200 |
What Can We Learn?
No two budgets are the same — and that’s okay! Each reflects someone’s priorities and situation.
Even with a lower income, small savings add up over time (Sam’s doing great!).
Middle earners like Alex can balance lifestyle now with investing for the future.
Higher earners like Priya often carry more responsibilities, and the stakes for financial planning are higher.
Want to Create Your Own Budget?
Check out our free budgeting tools and guides here, and if you’re saving money regularly, make sure your interest rate is competitive.
Summary
No matter how much you earn, budgeting is about spending with purpose. It’s not about depriving yourself — it’s about being in control, setting goals, and making confident decisions.
Whether you're earning £1,400 or £5,200 a month, the right budget helps you move forward. Take what works from these examples, then build something that works for you.