how to budget for rent

mardatha

Asking on behalf of my daughter here, so forgive me if I get anything wrong
She is moving to a house where they want the rent paid per calendar month. She gets paid weekly. Is there any way she can set up a S/O that takes the money out of her acc on a thursday and then somehow keeps hold of it and pays the rent on the due date of the month ? If there is some way of doing this then please tell me !:D

PROLIANT

mardatha wrote: »

Asking on behalf of my daughter here, so forgive me if I get anything wrong
She is moving to a house where they want the rent paid per calendar month. She gets paid weekly. Is there any way she can set up a S/O that takes the money out of her acc on a thursday and then somehow keeps hold of it and pays the rent on the due date of the month ? If there is some way of doing this then please tell me !:D

Yes, open another bank account first then setup a standing order from her existing account on Thursday for the weekly amount and transfer it to the new bank account, then set up a Direct Debit on the new account for her rent each month.

Olipro

I would simply open up a second account or savings account with the same bank and then setup a standing order into that account to go out every week.

all you have to do after that is create a second standing order from the second account that goes out on a monthly basis.

jamesd

If the bank is willing she should also set up an overdraft facility on the second account that is sufficient to cover the rent if something goes wrong in the transfers. Not likely to happen but missing rent payments is a bad idea.

For the first account, taking money out on Thursday would require getting paid on Wednesday so the money is in there around midnight on Thursday morning. An overdraft facility that is sufficient to cover the standing order would allow this to happen as desired if she's paid on Thursday; the OD would be used temporarily to make the payment then repaid without charge when the pay arrives a little later.

And for her, "overdraft facility" is different from "overdraft". An overdraft facility is used to protect you so minor banking irritations and glitches don't cause your payments to fail, while an overdraft costs you interest money that you could be partying with instead.

mardatha

Brilliant thanks everybody !

hullight

TBH sounds like she needs a tighter grip on her finances - pay schedules shouldn't affect paying rent, unless it's maybe just the first month and deposit or something.

But yeah, a lot of people do like to have different bank accounts for bills etc. but careful because if they all have overdrafts it might eat into her available credit and make applying for more hard if she needs to (e.g. doing up her new pad:D).

getmore4less

Get het to do a proper budget for at least a years income/outgoings.

this SOA is a good starting format.

http://www.makesenseofcards.co.uk/soacalc.html

mardatha

its ok, that's all I needed to know thanks. Just a tidier way of managing rent monthly.

heloid

I do something similar, except I use the second account as a spending account.
Pay goes in to primary account (which has an overdraft). Standing orders and DD's go out of that.
I transfer spare money (for food and other stuff) in to the secondary.