Living within my means

Sir_Duke

Any - you're probably right. I've just paid for a service so I guess I've assumed I'm clear for a while. Probably not very clever. I'll add it into my budget.

I think this third account will help me. I'll see the actual money I have left to spend dropping, rather than being buffered by 750 pounds in rent that I haven't paid yet. Then all my direct debits coming out and me suddenly being back in the red.

Wish me luck!

bargainbetty

I'm sure you'll be fine - one account for operational costs, one for savings and one for fun - it makes it easier to be disciplined about keeping things straight. It worked for me when I was first setting up home!

I'd be tempted to allow a little bit more for gas/electric - just in case. That's only £60 per month for three of you. My bill is £70 per month for a two bed flat. Just keep an eye on it.

Best of luck

FreddieFrugal

I personally would not bother with the multiple current accounts - I have a nationwide flex direct account that pays 5% gross on balances up to £2500. Anything over this I put into ISA or regular saver for best rate, anything over that I put into the best instant access I can get.

I disagree with splitting money between seperate current accounts where transfers take extra time to make you disciplined (unless you also get additional benefits or interest by having those accounts), all that does is create a faff and limit your flexibility.

I use a Capital One Classic Extra for all shopping and fuel for the cashback. Make use of Quidco for cashback on online shopping. Then all direct debits come out of the one account.

You can then really easily see what you've got coming in and going out and anything left over a certain amount in your current account move into savings. Simple.

I say that though as saving money is my natural state of mind, ever since I was a child, because I had to save up to get anything I wanted. So I kept a big stockpile of pocket money and only spent it on something I really really wanted. I do the same now. Left university with more money in the bank than I started the three years with.

Currently manage to save about the same amount as your target with very similar income and outgoings, so I am equally at a loss as to where the rest of yours is going. We mostly trip to free places at the weekend though, we're not drinkers and generally live quite frugally I suppose, but we're lucky in that we live in countryside where you can just go off and have fun outdoors without spending anything. Also we used to complain that there was most to watch on telly until we invested in a DVR, now that we can record stuff on at anytime we never run out - wouldn't bother paying for anything over freeview now, wouldn't have time to watch it!

-taff

I have two accounts. One gets my wages, one I transfer in my spending money from the wages account. All monthly bills and direct debits go out of the main account.

I also made two spreadsheets, one for the main account that has a running total of quarterly and yearly outgoings, the same for the cash account.
Both have a final total of what should be left in the account at any one time.

By doing this, I could see where I was spending most of my money [I had a percentage calculator on my spending areas] and the total cost over 3 months [it's set up on quartely sheets]

Any yearly amounts come out of either account depending. Anything left at the end of the month either goes to buying bonds, into an ISA or into another savings account. I have a budgeted amount coming out of it for a regular savings account anyway.

Sir_Duke

Thanks IanRi for your input but I have definitely found this additional account has helped me.

-taff- I have pretty much done exactly as you have described and had a much better month moneywise. I transferred as much as I should spend into the extra account and a week before payday I know that I'm pretty much running out so should have a few NSDs in the coming week.

If all goes to plan then I should be about £250 up on where I was last month before pay day. Heading in the right direction.

Thanks everyone for your advice, I think I'm getting there!

Destin36

Sir_Duke wrote: »

Hello all,

New to this forum so apologies if this is in the wrong place. I'm 25, living in London and earning a decent enough salary...but I've been spending all of my money, and more! The time has come for me to start saving some of my salary. I've budgeted quite well over the last few months and so have managed to pull myself up from an overdraft of about £1000 and into the black.

I'm starting to think about buying a house, even though it'll be a good few years in the future, and that money has to come from somewhere!

Basic summary:
Income (4 weekly) - £1800
Rent and council tax (monthly) - £750 :eek:
Direct Debits (monthly) - £200 (phone, gym, car etc)

I'm giving myself £100 a week to live (groceries, socialising, petrol) which leaves me with around £450 to save....

But I never have anywhere near that left and end up saving around £100. This diary is to get me to realise the money that I spend and sort that out! Any advice anyone?!

ohh OMG it's much..Very expensive and 100 a month is not enough.
Is not it?