Bank envelope system

foolofbeans

We are well on our way to sorting out our finances but the practicalities of budgeting still confound me.
DH has wages which are very variable in the amount but paid fortnightly like clockwork. I have three part-time jobs which are all paid at different dates. One job pays on a set date, one job pays on the first or second week of the month and one pays on a variable date and sometimes bi-monthly.
I am really interested in the envelope system for budgeting but struggling to figure out how to do it using bank accounts - is it possible? I could take money out of the bank and store it but then what about the direct debits?
I have two bank accounts and DH has one bank account so I thought we could juggle everything but the different salary amounts and different receipt dates make it difficult to budget from my SOA amounts.
Any advice on what other people do is gratefully received.

HEROWHENZERO

Check out "youneedabudget (YNAB)" It works wonders for budgeting and for someone who has never really budgeted in the past, I am now a true convert, every penny is accounted for and budgeted accordingly.

enthusiasticsaver

why not set up one account for direct debits and set the dates for when you know the money will be there to meet them and try to build up one months worth so whatever date they are paid there will not be an issue. Use another account for variable expenditure like food, day to day spending and household stuff. Use one savings account for emergency fund and one for annual and large spends like birthdays, Christmas, holidays, insurances and house and car repair costs. 4 accounts in all

louby40

I second the use of YNAB. You can do a 34 free trial then it's £3.99 a month or £38 upfront for a year.

I've been using it since June and it's kept me out of my overdraft and helped me save £600

It's worth a try. Loads of online support too.

Brunette84

I have just signed up to YNAB after months of hearing about it and debating with myself and OMG it's amazing! I can finally see a way forward with my money and goals now �� Thanks guys for helping me make my mind up about this sophisticated piece of software x

datlex

You can definitely do the enveloped system using bank accounts. I get paid weekly and with monthly bills have to budget. I have an incoming account, a main bills account, a secondary bills accounts for water and tv licence (to get rewards), and a card mirroring account. Money is transferred to bills account on Pay Day each week. I sat down at start of year with a spreadsheet to work out how much I need to transfer each week on average to cover all the bills as they come due. Each week on pay day I transfer money from my incoming account to my bills account and to a savings account. I am then left with a certain amount which is available to spend. Most spending is on my credit card hence the card mirroring account. I don't use this account for purchases. As I spend on my card the amount is transferred into this account and when the bill comes in I pay it in full. Trick I find is to know what you have available to spend and to know what is already allocated to budgeted to bills that month.

foolofbeans

thank you for all your replies.
I have heard a lot about YNAB and I like the idea of designating every penny to a specific budget heading but was just wondering how this happens in practice. The variable amounts and variable payment dates make my head melt!
Grocery shopping budget amount is almost exactly the same as one of the wages I receive so that is easy to apportion then we only have three more job payments that I have to juggle.
I shall see about getting another account set up. I do have a savings account linked to my bank account so may use that for the annual things such as birthdays, Christmas and holiday expenditure.
Always happy to receive any tips though.

Brunette84

Fool of Beans i signed up for the 34 day trial and i'm hoked already so will certainly be paying the 3.99 a month for it when that runs out. I am so crap with money and want to buy a house next summer yet have debt so now ive sat down with this i can finally see a way forward and my dream doesn't seem that much of a dream anymore Hope you find something that works for you too x

[Deleted User]

Check out Principality, they're a bank that you can set up 'pots' online for various savings.

foolofbeans

thanks Purple mum but I couldn't find a current account, only savings accounts - is that what can have separate pots?
Also it is based in Wales and I am not so not sure if that would be a problem in opening the account.

[Deleted User]

Hi,

Yes it is a savings account. Although based in Wales, their accounts are online, so doesn't matter where in the UK you are (I'm in Surrey) you can still open one.