Have I got the right idea?

solvencyseeker

Hi again DFW's!

After a change in our circumstances, and your good advice on my first post, we now have refined our budget, started a proper spending diary and the snowball calculator shows that our debt free date should be November 2017

Can I check that I've got the right idea about budgeting for non regular payments like car maintenance. Should we start putting the amounts we have budgeted for these away each month? It's not like regular saving, but planning ahead for costs? I've just read a thread about using savings to pay off debts and want to make sure I haven't got the wrong idea....

Thanks for your help so far - we're having a good week after a false start last week. I will sort out my "signature" etc at some point but have been busy reading the boards, batch cooking and so on.

mrsscattercushion

hello again!


yes, I'd be putting away what you have budgeted for them each week/month so that when the bill comes in, you have the money. I'd view it as "allocated funds" ~ the money is already earmarked for future spending, rather than "savings", which hasn't got a specific purpose, just a pot of money to be used...does that make sense?


well done on a good week so far!

NHS_worker_bee

That sounds like exactly the right idea, I'm doing the same. Good luck

solvencyseeker

Thought so but being so new to this idea wanted to make sure. We've got 2 bank accounts and one has an e-saving account attached. I'm not sure if I can cope with separate accounts for everything, not yet anyway. I think we will continue to use our main account for all the big household bills, the other one for food and petrol and the e-savings for everything else.






Maybe I'll open a building society account for Christmas (sorry to mention that in April!). That's if they will have me - OH got turned down for a balance transfer CC (one that we thought we might use to pay off overdrafts and save the interest on those) - the pre apply check said he had a 70% chance of getting it and he has no negatives on his credit file (neither do I). I think it may be because we rent and have a lot of debt (£32,000+). Interestingly, one of our bank accounts doesn't show on our credit file. I've had the account for 30+ years and we changed it to a joint account when we married 24 years ago. Not sure if that matters?

in_need_of_direction

Hi ss, agree with what you're proposing. Also, if you gain any interest you can add it to a debt payment.