For those unfamiliar, the method encourages people who can afford to split their income into three parts to do so: putting aside 50% for essential spending (such as bills and food shopping), 30% for non-essentials (such as eating out and clothes shopping) and put the remaining 20% into savings.

50% essential spending – includes bills, regular direct debits and food shops

“While it might be tempting to think about planning exciting activities over the summer, such as holidays, festivals and days out with friends and family, first we need to consider essential spending and any financial commitments and savings goals,” explains personal finance expert Katy Simpson from Virgin Money.

According to Simpson, tackling those essentials first will enable you to have a better idea of how much money you have spare for saving and non-essential spending. “Some may find that the essentials are taking up more than 50% of their budget and, in these cases, it’s always worth checking for any unnecessary spending that could be cut back on,” she adds.

How to embrace the last few weeks of summer on a budget, using the 50:30:20 method