What's the next step for budgeting?

Bargain_Rzl

Like others, I work on a January-December budget for most things - except my annual rail season ticket which expires at the beginning of July. As well as spreading the cost of things over an year, this means that cashflow-wise I'm generally OK even on a "heavy" month - for example, my entertainment budget tends to take a bit of a hammering in February/March, but meanwhile I have cash building up for rail ticket, Christmas etc, which aren't needed for a few more months, so this covers irregular spending month-on-month.

crawley_girl

I stick at least £100 a month into a savings account to cover MOT, car repairs/ servicing/ dentist/ opticians/ haircuts/ holidays/ birthday and christmas and basically any other expense that my crop up.

For some unknown reason I loathe to withdraw money from this account and have managed to find the money (cash not credit!) as each of these expenses have arisen. I currently have 1k in there at present and plan to withdraw some of it to pay off debts... if I can only hand over the passbook at the counter!!!

:heartpuls CG :heartpuls

tawnyowls

Best to save into a high-interest savings account (one that gives instant access and no penalties for withdrawals obviously). Stamps may seem like a good idea, and they are very convenient, but unless they come with a bonus, you're giving the shop your money for X months without getting anything back, whereas if that was in a savings account it would be earning interest.

funkymonkey

i have two accounts one called BIRTHDAY/CHRISTMAS and have a £50 DD going into it, the other called EMERGENCY FUND £50 in that also!

emergency fund is for things like any MOT falure fix's etc!