We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
the big three
Options

Sproston
Posts: 5 Forumite
Hello folks, I'm a newbie.
I've been looking for budgeting tips but just on how people separate their bills from their spending from their savings. I've never got into financial hardship but my bills just come out of my current, at different times and I'm never really sure if I can afford things.
I keep my current account topped up, so as to ensure that bills are covered but by doing so, if I go to check my balance, I have no frame of reference as to whether I can buy things or if I'm skint or not!
I need a system that ensures 4 things; I know how much I can spend each period, I know that my bills are okay, i can see if i can afford a big purchase such as a tv or holiday and i know that irregular large payments are going to be covered.
Lack of money isnt the problem, its knowing where it all is!...
I've been looking at opening a billing account, or a spending account but then I think, is there really a need, surely there's a simple way?
I've been looking for budgeting tips but just on how people separate their bills from their spending from their savings. I've never got into financial hardship but my bills just come out of my current, at different times and I'm never really sure if I can afford things.
I keep my current account topped up, so as to ensure that bills are covered but by doing so, if I go to check my balance, I have no frame of reference as to whether I can buy things or if I'm skint or not!
I need a system that ensures 4 things; I know how much I can spend each period, I know that my bills are okay, i can see if i can afford a big purchase such as a tv or holiday and i know that irregular large payments are going to be covered.
Lack of money isnt the problem, its knowing where it all is!...
I've been looking at opening a billing account, or a spending account but then I think, is there really a need, surely there's a simple way?
0
Comments
-
Welcome Sproston!
I think I know what you mean......after use of various spreadsheets (home-made and freeware budgeters) and scrap pieces of paper that I could never find when I needed them, I eventually succumbed and bought MS Money earlier this year.
Takes a bit of getting used to and it has more functionality than I need - but I find it very useful because finally I can do now budgeting across all my accounts, at affordable efforts. I have all my accounts, investments, credit/debit cards, even Paypal in one place now, and all the regular bills are factored in, too. I try to discipline myself to update things with occasional spend/cash withdrawals etc once a week.
Google for the cheapest places to get the (2005) Deluxe version - expect about £40. The standard version is probably more like £25 (I can't remember now why I opted for Deluxe). Oh, and I think microsoft.com usually offer a 60 or 90 day free trial, with download of the software. A word of warning though - once you have done all the setup, you have more or less committed yourself to buy because it's quite a bit of work
You can find it cheaper on eBay but some of the bargains a pirated copies :eek:
Once you have sorted out how much you need in spending and how much in savings account, you can decide what you keep in a current account and what elsewhere.0 -
Martin has a budget spreadsheet somewhere in the site.
I've not used it myself but a quick hunt may dig it up.
BenI beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
I beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
Thanks for the replies.
My main concern is how to separate the bills from the disposable income. Putting money into savings isn't a problem as i use a direct debit but I still can't get to grips with the best way to manage the rest.
I am living within my means but after paying a few bills, I look at my current account and the figure isn't an representation of what i can spend as there are other bills to come out at different dates.
Because of this, I keep my current account in more credit than is needed which may sound like a good thing, but adds to the confusion of how much I can spend(i.e. there is no 'zero')
hope that makes sense ;-)0 -
I'm with firstdirect and do everything online. I have a current account and a savings account, which you can treansfer money between instantly. I make a list of all my bills for each week, and put the money for them in the savings account, and then transfer over what I need, either weekly, or on the day its going out, (I'm online pretty much everyday, and its very easy to do), so then whats in my current account is mine to spend. But for me having list of everything going out writen down is important, so I dont forget something.0
-
Hello and welcome Sproston.
Are your bills paid by Direct Debit, or some other method? I'm going to assume for the moment that they are paid by DD, as there's a pretty good chance they are.
You can do several things.
1) Ask the companies to change the dates they collect the DDs, so they come out of your account very shortly after getting paid, so you don't have to leave money in your account for a long time before the DDs are claimed.
2) As you suggest yourself, set up a bills account, and have all the DDs paid out of there. Set up a Standing Order from your main account to it with just enough to cover all your DDs, and use that account for nothing else.
3) You don't have to pay companies by DD (well, most companies, anyway). Cancel the DDs and pay by BACS transfer instead. That way the funds will debit your account straight away. I personally wouldn't go for this one, as some companies will give you a discount if you pay your bills by DD, plus they're in control so it isn't your fault if a bill isn't paid.0 -
try reading Automatic Millionaire by David BachAoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht frist and lsat ltteer is at the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae we do not raed ervey lteter by it slef but the wrod as a wlohe.0
-
I have 2 accounts.
A bills ac and a current ac. The bills one gets 400 put into it on payday, because I know that is what all my bills come to per month. I dont care what day of the month they come out, the money will be there. The 400 also covers yearly events like car tax, MOT etc etc. So the bills ac sometimes has a very healthy positive balance - which is not mine - but is storing up money for the bills I know I will have to pay yearly. (nb. I also put 50 extra in for my emergency fund - washing machine breaking down etc)
The other ac (once savings come out) is mine all mine, and whatever the balance is is mine.
Hope this helps.0 -
MS Money works very well, though the older version (pre 1997!) I have is better because you can enter all due (future) transactions in one lump rather than one at a time which appears to be the case with the new versions. I do this on payday one month into the future so all the monthly regular transactions are accounted for. If you then enter money as you spend it and ensure you do a proper reconciliation when statements arrive, you'll find you have everything you need to work out your cashflow. It's a chore, but well worth it.
I use a linked Cahoot Savings and Current account which allows instant transfers. This allows me to run very close to the wire in terms of ensuring I always have cash available when its needed - for example when I'm paying a stoozed credit card bill - so excesses are shuffled into savings as soon as they arrive and pulled back only if needed. I also run various regular savers out of the current account so I don't see the money in the first place and hence don't spend it.0 -
So to summarise:
1) Get a cheap copy of MS MONEY (Amazon, charity shop) and keep it up to date
2) Set up Standing Orders or Direct Debits for regular bills
3) Consider having payments go out together so you know where you are
4) Transfer 'spending money' to a separate account
5) Use online banking but remember MS Money will be more accurate because it will take account of all payments as you enter them, not just cleared ones.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards