Account for bills

sacha28 · 23 April 2017 at 9:39AM

Ben8282 wrote: »

I'm not sure that opening a new account for this purpose is a good idea. I think you would be better off leaving the money in one account and reducing any overdraft use or potential overdraft use on the account. Each month, on the desired date, you account for the total of your bills as if you had transferred the money to a different account and treat this money as spent and not there until it is actually paid out.

We don't have any overdrafts but thank you for taking the time to reply.
We've made the decision to leave the bills going out of the account they already go out of and have set up a SO to a 'spend' account so we know exactly how much we have to spend on things like fuel and food etc. We have also 'allowed' ourselves a monthly 'personal allowance' which will come out of the 'spend' account as I was starting to feel a little resentful that the big bills (rent, for example) are paid out of my wage, leaving very little for anything else. We have agreed, and indeed already impplemented, changes that have actually made me feel positive about finances since our discharge from the DRO

System · 23 April 2017 at 9:43AM

As others have suggested, opening another account for spends is probably the way to go - this can be another current account or even a savings account with a ATM card.

Who is your current account provider?

EachPenny · 23 April 2017 at 9:50AM

sacha28 wrote: »

...several spreadsheets so we could see what goes out and when. It feels so liberating just to have a plan!!!

This is absolutely key when you are in debt, or very nearly there. You need to understand where every pound goes each month to work out which ones can be saved and used for something else instead. It sounds like a lot of hassle, but once you understand your outgoings, and cut back where necessary, you will start to build up a surplus that takes the financial and emotional pressure off.

Then you can actually start enjoying spending a little bit extra knowing you can afford it, rather than worrying about the next bill.

Good luck, I hope your new approach works out well

Dobbibill · 23 April 2017 at 10:19AM

Have you completed a SOA?
(You don't need to post it but use it, it's a good starting point)
This allows you to give every single penny a job!

It makes you think about annual bills as well as vets (if you have pets), haircuts, car parking etc .....the little things that are often forgotten about on a monthly basis.

If you need to, use savings accounts to put money aside for things like Christmas, birthdays etc then do it so it is moved from your main and/or spending account. Getting it started is the hardest bit, then it becomes 'the norm'.

sacha28 · 23 April 2017 at 12:11PM

We completed an SOA shortly after the DRO but haven't done it since. It would probably be a good idea although we haven't added any debt as we are both terrified of ending up in the awful position we were in prior to the DRO. It just seems that we've been spending little bits here, little bits there on absolutely nothing and it alls builds up. I am positive that the personal allowance we have given ourselves will stop the pointless spending!

It's also difficult figuring out how much we will each be paid! I'm an NHS worker and my wage varies from month to month and it's difficult figuring out the amount, I have tried on many occasions and yet been so wrong when pay day comes about! My other half is also on a zero hours contract so he never knows how much he's going to get paid as his monthly hours vary so much. We'll get there, I'm sure. This plan WILL work!!!

Dobbibill · 23 April 2017 at 12:16PM

Always base your SOA on your lowest pay - anything above is a bonus and can be put into the holidays/Christmas/treats category as a top up.

Account for bills

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