Odd question re budget.

Lucifer

Another dull question from me I am afraid...

If for example you budget for £20 pressies per month (for xmas), and £20 per month for childrens shoes and trainers (3 kids) etc. What do you do with the money?? Do you put it into a savings account until you need it? If so would I not be better off puting it towards c.cards and then buy shoes on c.card, because c.cards have higher interest then savings?

Sorry, but I wouldn't trust myself to leave it in my current account. I think I would dip into it here and there. :rolleyes:

jobbingmusician

Yes I agree - seems FAR more sensible to me to throw everything you can at CC, and then use CC to 'buy back' the money.

That's what I do with our (flexible) mortgage!

vixxen

I've set myself up with an online savings account, it pays out a higher rate of interest. There are no cards or anything so I can't be tempted when I'm out and about but if I do need the money I can transfer it to my current account using the net or phone.

I'm sure there will be plenty more options posted soon though!

Broken_hearted

No credit cards charge too much, there is no point paying them down to run them back up.

CLAPTON

in purely financial terms the answer is to use the money to reduce your highest APR credit card, because the return will be the CC APR (maybe 15%?), whereas if you use a high interest saving a/c the best you get is 5% gross (less if you pay tax). however, this requires you to be confortable with this and keep careful records of your pressies/shoe pots.

skintchick

To be safe, I'd stick it in an instant access high interest savings account, so you won;t get out of control on the cards.

nabowla

If you're saving up for planned expenditure (eg presents and shoes), how about putting it in a 14 day notice account? That way you won't be able to get at the money straight away and you'll be earning a higher rate of interest.