Step 1: Start with what you take home
Budget with your pay after income tax, USC and PRSI, and any pension or auto-enrolment contribution, not your salary. The salary calculator works it out, or check your payslip.
If your pay changes from month to month, because of overtime, shifts or self-employment, budget with a lower month and treat anything extra as a bonus.
Step 2: See where your money goes
Look back at one or two months of bank and card statements. Most banking apps sort spending into categories. Don’t judge it yet: just find out what you really spend on rent, groceries, travel, subscriptions and eating out.
Step 3: Split it 50/30/20
| Share | For | Examples |
|---|---|---|
| 50% | Needs: what you must pay | Rent or mortgage, groceries, energy, travel to work, insurance, minimum debt payments |
| 30% | Wants: what makes life enjoyable | Eating out, streaming, holidays, hobbies |
| 20% | Saving and paying off debt faster | Emergency fund, pension, extra loan payments |
| Part | Amount |
|---|---|
| Needs (50%): rent, food, energy, travel | €1,542.10 |
| Wants (30%): eating out, holidays, hobbies | €925.26 |
| Saving and debt (20%) | €616.84 |
| Take-home pay a month | €3,084.20 |
Pension or auto-enrolment contributions come out of your pay too, so budget with the figure on your payslip.
Step 4: Plan for the bills that don’t come monthly
Many Irish costs come once or twice a year, and they’re what usually breaks a budget:
- Car: insurance, motor tax, the NCT and servicing
- Home: Local Property Tax if you own, home or contents insurance, and heating oil if you use it
- Family: back-to-school costs in August, and Christmas in December
- Subscriptions and memberships that renew yearly
Add them up, divide by 12, and move that amount into a separate savings account each month. When a bill arrives, the money is already there.
If the numbers don’t fit
In Dublin and other cities, rent alone can take half your pay. Treat 50/30/20 as a guide, not a test:
- Cut wants first. They’re the easiest to change, and subscriptions add up.
- Check your bills: switching energy supplier, broadband or phone plan, or your car and health insurance at renewal, often saves hundreds a year.
- Claim what you’re due, such as the rent tax credit or other payments and credits.
- Save something, even 5%. The habit matters more than the amount at first.
Make it automatic
- Set a standing order to savings for the day after payday.
- Pay bills by direct debit so you’re never late.
- Give yourself a set amount for spending, and check in once a month.
If you’re struggling with debt, MABS gives free, confidential help on 0818 07 2000. Try your own numbers in the budget calculator.