Using un-used money

Humpy

I am trying to introduce a household budget but wanted peoples advice/experiences of how to deal with un-used money.

For example, I have budgeted weekly 'pocket money' for myself of £50. Let's say I withdraw that amount from the bank on Saturday but then on the following Saturday I still have £10 in my wallet, should I only withdraw £40 or withdraw £50 and out the un-used £10 into another account for a 'rainy day'.

I'm edging towards the latter option as I would have already accounted for £50 a week iro 'pocket money' in my monthly budget but would like to know what others think.

Thanks.

grumbler

IMO, budgeting is setting limits on spending, not necessarily spending the planed amount. If you withdraw less than planed you will end up with more money left in your bank account than you planed. If you don't feel comfortable with this, transfer the excess to some savings account. As simple as that.

HeadAboveWater

Each to their own on this one.

What I normally do is throw any loose change and 'leftover' money into a pot. By the end of the month I can have quite a bit stashed away, sometimes £80! I can use that as my last weeks 'allowance' before payday, or treat myself, or bung it into a savings account.

JimmyTheWig

I agree. You need a pot (either physically a pot in the cupboard, a specific bank account for it or an entry in your spreadsheet) for unused pocket money.
You might then see this as money you can treat yourself with once it builds up a little bit, a pot of money you could use if something you normally buy is on special offer and you want to buy lots of it, or put it into long term savings / pay it off the mortgage / pay it into your pension, etc.

Dirk_Gently_2

Don't forget that you can have multiple "pots", too - real or virtual pots.

For instance a "pot" that all small change goes into at the end of the week, and another "pot" for large sums - or for if you're saving for something specific.

baggers02

Any left over has been through the 'budget' and therefore becomes 'spare' cash - roll it over into the following weeks £50 or save it.

opinions4u

Consider lowering your budget and saving more to start with!

sexyshark

i also have £50 spends each week any coins i have leftover go into a large plastic (2.5ft) jar, and any notes go onto a post office budget card to use for my car tax, when I have enough for the tax then I start overpaying the credit cards