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  • FIRST POST
    • kmb500
    • By kmb500 17th Jul 17, 7:49 PM
    • 380Posts
    • 99Thanks
    kmb500
    best bank accounts to open to "piggybank"?
    • #1
    • 17th Jul 17, 7:49 PM
    best bank accounts to open to "piggybank"? 17th Jul 17 at 7:49 PM
    Hello

    I am spending too much money and I need to cut down on it. I earn a decent wage but I just spend so much money. I don't know how. I just cleared 4 grand of debt in order to move out from my parents and now that I'm living on my own I should have even less money than I had before but still I'm overspending.

    I have gone through budgets and I should have about £400/month extra to spend on eating out, drinking, buying luxuries and savings. But still I burn through it all and spend way more than I actually have, and that's without putting any money in savings. My savings account is at £0.00 and my current account is about £700 overdrawn. I lack self discipline and it is easier said than done to spend less.

    I read an article on MSE about "piggybanking" which is that you have several different accounts and transfer different amounts to each one depending on your budget. That would physically stop me from spending too much and i think its a good idea.

    So I'm thinking of opening maybe 3 bank accounts and want to know where to go. What should I look for in a bank account? I will not be "switching" just opening extra accounts.

    Any other advice in general about budgeting would be very welcome, thanks
Page 1
    • WillPS
    • By WillPS 18th Jul 17, 11:17 AM
    • 201 Posts
    • 89 Thanks
    WillPS
    • #2
    • 18th Jul 17, 11:17 AM
    • #2
    • 18th Jul 17, 11:17 AM
    I would advise against relying entirely on the 'available balance' of any account to "physically stop" you from overspending. For all kinds of reasons, the 'available balance' may very well not be a true representation of the amount of money you have remaining after spending.

    The best way to physically stop yourself is to take cash out and put your debit card away. It isn't without risks though.

    Ultimately it is all a matter of self restraint. Find things to do which will make you feel happy and fulfilled which you can do with only a fiver in your pocket.
    • Don80
    • By Don80 18th Jul 17, 11:26 AM
    • 148 Posts
    • 56 Thanks
    Don80
    • #3
    • 18th Jul 17, 11:26 AM
    • #3
    • 18th Jul 17, 11:26 AM
    Hi

    As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

    I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

    What's left in my "main" account is mine to spend.

    My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

    Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.
    • kmb500
    • By kmb500 18th Jul 17, 2:30 PM
    • 380 Posts
    • 99 Thanks
    kmb500
    • #4
    • 18th Jul 17, 2:30 PM
    • #4
    • 18th Jul 17, 2:30 PM
    Hi

    As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

    I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

    What's left in my "main" account is mine to spend.

    My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

    Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.
    Originally posted by Don80
    Yeah that's what I mean
    Thanks for the advice.
    • giocoforzauno
    • By giocoforzauno 10th Aug 17, 8:10 PM
    • 18 Posts
    • 3 Thanks
    giocoforzauno
    • #5
    • 10th Aug 17, 8:10 PM
    • #5
    • 10th Aug 17, 8:10 PM
    Hello

    I am spending too much money and I need to cut down on it. I earn a decent wage but I just spend so much money. I don't know how. I just cleared 4 grand of debt in order to move out from my parents and now that I'm living on my own I should have even less money than I had before but still I'm overspending.

    I have gone through budgets and I should have about £400/month extra to spend on eating out, drinking, buying luxuries and savings. But still I burn through it all and spend way more than I actually have, and that's without putting any money in savings. My savings account is at £0.00 and my current account is about £700 overdrawn. I lack self discipline and it is easier said than done to spend less.

    I read an article on MSE about "piggybanking" which is that you have several different accounts and transfer different amounts to each one depending on your budget. That would physically stop me from spending too much and i think its a good idea.

    So I'm thinking of opening maybe 3 bank accounts and want to know where to go. What should I look for in a bank account? I will not be "switching" just opening extra accounts.

    Any other advice in general about budgeting would be very welcome, thanks
    Originally posted by kmb500

    I thought that.
    Try to pay your purchases by cash. Avoid, if possible, using credit or debit cards.

    So touching and seeing money in your hands, and seeing a more empty wallet you should spend so much less money.

    Try to do it! And let us know if this idea works.
    Last edited by giocoforzauno; 11-08-2017 at 8:33 PM.
    • Heng Leng
    • By Heng Leng 11th Aug 17, 3:18 AM
    • 4,100 Posts
    • 1,254 Thanks
    Heng Leng
    • #6
    • 11th Aug 17, 3:18 AM
    • #6
    • 11th Aug 17, 3:18 AM
    Hi

    As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

    I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

    What's left in my "main" account is mine to spend.

    My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

    Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.
    Originally posted by Don80
    It's not a good idea to keep all your funds with a single group as they may have a technical fault or decide to close all your accounts - you be stuffed until TSB move off of Lloyds systems!
    Last edited by Heng Leng; 11-08-2017 at 1:32 PM.
    • Dobbibill
    • By Dobbibill 11th Aug 17, 7:30 AM
    • 2,286 Posts
    • 3,411 Thanks
    Dobbibill
    • #7
    • 11th Aug 17, 7:30 AM
    • #7
    • 11th Aug 17, 7:30 AM
    Any savings should be moved on payday or within a day or so.
    Leaving it in your spending account is misleading, so you are spending it without thinking.

    Sit down with your statement and see where everything is going. Odd coffees here and a takeaway there soon add up.

    There's also several budgeting apps available. Many on here rave about YNAB (it does cost but there's a free trial and tutorial available)

    Finally look at what you want from an account - do you want to get interest on your balance or spending offers.
    Don80 has the right idea with different bills/spending accounts. If your direct debits are already set up on your existing account then your going to be looking for a spending account.

    Ultimately it's down to self discipline but piggy banking may help with this.
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    • mcpitman
    • By mcpitman 11th Aug 17, 9:40 AM
    • 522 Posts
    • 359 Thanks
    mcpitman
    • #8
    • 11th Aug 17, 9:40 AM
    • #8
    • 11th Aug 17, 9:40 AM
    Hi

    As long as you are clear about what you would use each account for, that's a good idea. The key here is self control - whatever you choose to do.

    I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

    What's left in my "main" account is mine to spend.

    My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.

    Bank of Scotland and Halifax have a monthly saver account where you pay in from £25 to £250 once a month by standing order. That makes it a bit more like a bill to pay, and if you need it you can withdraw it at any time - but cannot replace it. That helps provide some incentive to save.
    Originally posted by Don80

    I do exactly this, and it does work along with a strict budget for the week and withdrawing that in cash.


    I don't have accounts that give me any bonus though...... off to check this out now.
    Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....
    • teddysmum
    • By teddysmum 11th Aug 17, 11:05 AM
    • 8,221 Posts
    • 4,891 Thanks
    teddysmum
    • #9
    • 11th Aug 17, 11:05 AM
    • #9
    • 11th Aug 17, 11:05 AM
    As above, I would use cash for anything beyond essential bills.


    If you don't actually handle the money you have no concept of it's value, especially if younger and never having lived n times where it was common to have wages paid in cash.


    I was only saying this to my husband ,the other day, after seeing it discussed on a tv programme.


    I was a mathematician ,yet don't really appreciate money as I did when we were first married (45 years ago) and I used to take the housekeeping money out in cash.


    Another reason for cash is that if you cancel the option to take an overdraft, you can't spend what you don't have.


    Also, it's time to grow up and take responsibility for your finances ,as if you are forced to take a lower paid job or have no job at all, you really need to be able to budget.


    Money is one of the most common reasons for relationship breakdowns, so a future partner is not going to be happy, if they are careful and you undo their good work by wasting money.
    • MagicMoneyTree
    • By MagicMoneyTree 7th Sep 17, 4:56 PM
    • 9 Posts
    • 4 Thanks
    MagicMoneyTree
    If you don't like using cash, I'd highly recommend a prepay debit card for spending money. They don't allow you to go overdrawn and often come with great spending trackers and/or cashback on purchases.

    Try Monzo or Loot, they're both great!
    • wiseonesomeofthetime
    • By wiseonesomeofthetime 7th Sep 17, 6:54 PM
    • 88 Posts
    • 41 Thanks
    wiseonesomeofthetime
    If you don't like using cash, I'd highly recommend a prepay debit card for spending money. They don't allow you to go overdrawn and often come with great spending trackers and/or cashback on purchases.

    Try Monzo or Loot, they're both great!
    Originally posted by MagicMoneyTree
    I use Monzo for my 'leisure' money, e.g. Eating out, days out with kids.


    Use is instant and accurate balance viewable on smartphone.


    Ok for abroad too.
    • MagicMoneyTree
    • By MagicMoneyTree 8th Sep 17, 5:19 PM
    • 9 Posts
    • 4 Thanks
    MagicMoneyTree
    yes Monzo does a very good job of visualising your spend instantly... I also use it to take cash out abroad for free at near-perfect exchange rates (see also Revolut who do this).
    • getmore4less
    • By getmore4less 9th Sep 17, 3:32 PM
    • 29,784 Posts
    • 17,808 Thanks
    getmore4less
    Hello

    I am spending too much money and I need to cut down on it.
    ..........
    I have gone through budgets and I should have about £400/month extra to spend on eating out, drinking, buying luxuries and savings. But still I burn through it all and spend way more than I actually have
    .........
    Originally posted by kmb500
    That was a waste of time that is what you think/want to spend.

    What you need to do is have a plan and actualy monitor the spends.

    In MSE/SOA/budgeting it's called the spending diary.

    without one you are never going to get a balanced budget.

    If you use the SOA format put everything you spend on that and make it balance, if not sure guess values and track.

    One category goes over decide where you will cut back to keep it balanced.
    • paddlingfuriously
    • By paddlingfuriously 10th Sep 17, 1:15 PM
    • 81 Posts
    • 86 Thanks
    paddlingfuriously
    I've just started using Monzo to manage my spending - so far so good. The push notification you receive with every purchase includes the total you've spent that day which definitely helps me keep track of my overall spending and think twice.
    • datlex
    • By datlex 10th Sep 17, 1:43 PM
    • 1,313 Posts
    • 1,093 Thanks
    datlex
    Hi

    I have 2 current accounts which I use. One is where my salary goes. I have another account for paying my bills. On payday I transfer money to the bills account so I know everything has been paid.

    What's left in my "main" account is mine to spend.

    My main account is with the Bank of Scotland as they pay interest and have a cash back scheme on some purchases (I'm up to almost £4 this month!). My bills account is with the TSB, but I am seriously thinking of moving it to the Halifax as they would pay £3 a month for having direct debits set up - which is more than the interest I earn at TSB.
    Originally posted by Don80
    When I first started having more than one bank account this is what I did. Now I have several My bills money is held in my TSB account (earning interest) then the day before each bill is due, transfer the amount needed to cover it to the appropriate account. That way I earn £3 from Halifax £7--3 from Barclays and £4 from Coop.
    Any savings should be moved on payday or within a day or so.
    Leaving it in your spending account is misleading, so you are spending it without thinking.

    .
    Originally posted by Dobbibill
    100% agree with this advice. Distribute money first. Amount allocated to bills, amount to savings, Rest is yours to spend.
    Also, it's time to grow up and take responsibility for your finances ,as if you are forced to take a lower paid job or have no job at all, you really need to be able to budget.

    .
    Originally posted by teddysmum
    My partner has had to reduce his hours at work in order to care for his elderly parent. This means he has a lot less money available to him. Thanks to my budgeting however, I can afford our weekly takeaway.
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