Budget with Cash or open a New account?

Lottebear

My Husband and I want to set our selfselves a budget for our treats, like new clothes, meals out, magazines...

I find that it is hard to stick to a budget using our current account, would you say therefore it is better to draw the cash for these things out at the begginning of the month or to open a basic bank account and transfer the money in there?

brummiebabe

Hi

For me, I find it easier to put the money into little envelopes for everyday things/treats eg magazines etc, at the beginning of the month - then it's there when you want it!

However, for clothes etc - I'm guessing you may save for a couple of months & then buy them, rather than spending the set amount every month? If so - I'd open an ING (or similar) account - I think you can have upto 10 accounts (which you can name eg clothes, xmas etc) and set up a direct debit. When the money's needed - simply transfer back to your current account!!

Hth!!!!

beanielou

Its really about what you think will work best for you.