How much for clothing/birthday/emergency funds? New SOA

FireWyrm

There you go. I actually prefer the idea of discreet savings accounts with individual account numbers and sort codes, rather than a single pot, but its really up to you how you do it. Savings are savings and you're doing the right thing.

I suggest that your SHTF fund is with someone else like Tesco. Their internet banking is shocking, but perversely, that's why I like it. Their banking is so badly designed that I need a texted passcode to get into it because I dont accept cookies and so it makes it just hard enough to get at the money I have to think twice. Since it's a savings account I can only transfer money in and out as there is no card or cheque book associated. That means I have to wait 3 days for the money to show up in the external account if I transfer out - a good idea in the long run and stops be using it without thinking.

RockPaperScissors

Ah that's a good idea! I have my credit card with Tesco and you are totally right - their banking is SUCH a nightmare that I won't bother going in for it!

RockPaperScissors

Just as an update...

Domino9 wrote: »

So when will the grad account start charging you interest on the OD? (if at all) Are there any restrictions etc? D9

On Saturday I received a letter saying that the interest free grad account was coming to an end and it would switch back to a normal current account as of August (how's that for timing?)

So I have re-routed the birthday/clothes/car/emergency fund money into the grad account (£140) and left the £25 SO coming out this month which will leave just £134.99 to clear next month.

Then I will be clear of that account at the beginning of July :T

Then I can move back to pushing as much money as I can into the CC and adding into my new fund pots!

Seen_the_light

Don't want to confuse you, you're obviously well on your way. But for info and anyone else reading this who is just starting out, Nationwide allow 4 current accounts per person, and a seemingly endless amount of e-savings accounts (that you can name yourself). I have annualised all my expenses and divided into monthly payments, then move money accordingly just after pay day. Some of these are really silly little amounts, but they do add up.
After years of paying huge amounts of interest on credit cards, I can now trust myself to use them to my advantage. I never spend what I haven't already got, then every time I make a purchase I come straight home and move money from my 'pocket money' account, into my 'credit card' e-savings account so that the money in this account always matches my spend. Then when the bill comes in, the money is sitting there ready to pay. As my credit card also gives me cashback - this is lovely 'free money'! As well as this i get a teeny bit of interest on all those little e-accounts! (Ok I know we are talking pennies here, but even so -LOL!).
Just a final word on annualising amounts. I got caught out as I had worked out my annual amounts for Birthdays and divided them. However, the very next month was a 'big' relative's Birthday that I had yet 'saved' enough for. Christmas is fine because it's all needed once, annually. So if you are starting now, it is easy to calculate what you plan to spend and divide it (I always plan to have my Xmas money available for end of October so I don't have mad panic buy). I think it was FireWyrm who suggested separate debit account for presents - this works for me too, although I don't keep the money in here, just transfer it in when needed. Just calculate when you first spend will need to be for Birthdays and make sure you have enough put by (this will be fine after the first whole year as you will have a rolling amount, if that makes sense).
Good luck! - you are SO doing the right thing. I too wished I'd got the hang of this when I was starting out - wasted so much of my money on paying interest (and nasty bank fees during one particularly dodgy period).