One or Two accounts?

takman

Ilona wrote: »

Different methods suit different people. I am very good at managing my money so I only need one bank account and one credit car. I pay my utilities quarterley by cheque into the bank. I have minimum direct debits, my monthly bank statement has only one page, easy to check.

Savings can be short term for emergencies, things breaking down, medium term for annual events like car insurance, MOT, and tax, weekends away, or long term for changing the car, weddings, moving house, holiday of a lifetime.

I don't split my money up into separate accounts, because I find it simpler to have one total which covers all of the above. I take one look at my statement, nothing untoward going one, the figure at the bottom is in my head. Columns of figures confuse me. At this moment in time I know I could change my car tomorrow, part ex plus cash. I could go on a round the world cruise, but I don't want to.

I don't have a savings pot as such, I just don't fritter the money away on things I don't need, the balance creeps up and up when you stop spending. It's all down to self discipline.

Ilona

A big part of managing your money is making sure that you are getting the best return on your "savings". If you just have a large balance in one account then you will certainly be getting a very poor rate of interest which is probably costing you hundreds of pounds a year!.

You also say you pay your utilities by cheque?. All the cheapest deals give a discount for paying by direct debit so again that is money being wasted.

GetRealBabe

Hi

My main account is Santander, 123 which has most of my DDs, then Halifax Reward, Co-op basic account for online stuff and YBS Internet Saver for my wages.

I prefer to have a few accounts in case something happens to my Santander account and I can't access it.

eskbanker

Ilona wrote: »

I am very good at managing my money so I only need one bank account and one credit car.

See post #3 for a reason why this may not be something to be smug about!

Ilona

takman wrote: »

A big part of managing your money is making sure that you are getting the best return on your "savings". If you just have a large balance in one account then you will certainly be getting a very poor rate of interest which is probably costing you hundreds of pounds a year!.

You also say you pay your utilities by cheque?. All the cheapest deals give a discount for paying by direct debit so again that is money being wasted.

How do you know what it is costing me? Do you know how much money I have? I could probably make a bit on it, but why should I put myself through the bother of chopping and changing, when my priority is to have a simple life. It's there, that's all I need to know, I can get on with enjoying my life.

Making money has never been a priority with me, I was lucky to have work in the job I loved, it was a hobby which I got paid for. Now I am a pensioner and my time is my own, I manage very well on a state pension with a small top up pension. Now time is more important than money, I have enough, I don't need to make more.

I don't want to pay for my utilities before I use them. I want a quarterly bill and will pay for what I have used after I have used it. I am with a company that has no standing charges, and no penalties for paying this way, everyone pays the same rate. I am an extremely low user so my bills are low. I have a water meter so I am able to regulate how much I use to keep the bills low.

Everyone's priorities are different, I use the system that works best for me.

Ilona

Ilona

eskbanker wrote: »

See post #3 for a reason why this may not be something to be smug about!

I don't think I am being smug at all, I just said what works best for me. So, post 3 says I should have two of everything in case one breaks down. My bank has served me well, I must have been with them for 40 odd years, never a problem. My computer is not linked to theirs, I don't do internet banking, so if they lose my money I would hope that they have contingency plans in place to reimburse me. I don't go to bed at night worrying if all my money might disappear. If that's smug, then so be it.

Ilona

takman

Ilona wrote: »

How do you know what it is costing me? Do you know how much money I have? I could probably make a bit on it, but why should I put myself through the bother of chopping and changing, when my priority is to have a simple life. It's there, that's all I need to know, I can get on with enjoying my life.

Making money has never been a priority with me, I was lucky to have work in the job I loved, it was a hobby which I got paid for. Now I am a pensioner and my time is my own, I manage very well on a state pension with a small top up pension. Now time is more important than money, I have enough, I don't need to make more.

I don't want to pay for my utilities before I use them. I want a quarterly bill and will pay for what I have used after I have used it. I am with a company that has no standing charges, and no penalties for paying this way, everyone pays the same rate. I am an extremely low user so my bills are low. I have a water meter so I am able to regulate how much I use to keep the bills low.

Everyone's priorities are different, I use the system that works best for me.

Ilona

You have enough money to go on "a round the world cruise" which are not cheap. So the amount you are loosing out on in lost interest alone will be £500+ a year.

If your on a standard rate tariff then you will also be overpaying for your energy usage, when was the last time you switched energy providers?. I bet you could make some big savings here too.

This isn't about making money its about getting the best deal on every financial product you have and everything you buy, so the best bank accounts, the cheapest energy provider and best value for money when you buy things.

I understand everyone's priorities are different but you said you are very good at managing your money. But i disagree because managing your money also means making sure you get the best deals and best interest rates.
It would only take a couple of hours to do all this and maybe an hour a month to save thousands of pounds a year, so not exactly a lot of time.

Ilona wrote: »

I don't think I am being smug at all, I just said what works best for me. So, post 3 says I should have two of everything in case one breaks down. My bank has served me well, I must have been with them for 40 odd years, never a problem. My computer is not linked to theirs, I don't do internet banking, so if they lose my money I would hope that they have contingency plans in place to reimburse me. I don't go to bed at night worrying if all my money might disappear. If that's smug, then so be it.

Ilona

If your time is so important to you then why are you happy to waste time by having to visit a branch to pay in cheques and other transactions?.

There is nothing wrong with internet banking and i have definitely never worried about my money disappearing!. But lets say that someone did empty your account somehow, how long would it take before you realised by not having internet banking?.

EachPenny

takman wrote: »

If your on a standard rate tariff then you will also be overpaying for your energy usage, when was the last time you switched energy providers?. I bet you could make some big savings here too.

I agree with some of what you say takman, but I suspect Ilona will be responding that her standard rate tariff is the cheapest one.

Ilona

takman wrote: »

You have enough money to go on "a round the world cruise" which are not cheap. So the amount you are loosing out on in lost interest alone will be £500+ a year.

If your on a standard rate tariff then you will also be overpaying for your energy usage, when was the last time you switched energy providers?. I bet you could make some big savings here too.

This isn't about making money its about getting the best deal on every financial product you have and everything you buy, so the best bank accounts, the cheapest energy provider and best value for money when you buy things.

I understand everyone's priorities are different but you said you are very good at managing your money. But i disagree because managing your money also means making sure you get the best deals and best interest rates.
It would only take a couple of hours to do all this and maybe an hour a month to save thousands of pounds a year, so not exactly a lot of time.

If your time is so important to you then why are you happy to waste time by having to visit a branch to pay in cheques and other transactions?.

There is nothing wrong with internet banking and i have definitely never worried about my money disappearing!. But lets say that someone did empty your account somehow, how long would it take before you realised by not having internet banking?.

Why are you so annoyed about me doing things differently to you?

I switched energy providers three years ago, and I have recently done it again. Now awaiting my first quarterly bills.

I don't NEED another £500 a year, I have enough thank you. More money doesn't always bring happiness, I am lucky that I have an income that meets all my needs.

When I go to town it is an outing for me, I visit other places as well. I go to the library, the Art Gallery, visit a cash and carry, buy pet food at the discount stores, and meet with friends. I sit on a bench and eat a sandwich and watch the world go by.

I get a monthly bank statement in the post. If my account was emptied, no doubt a whole lot of others would be as well. I don't expect to get a statement with zero balance on it.

I am good at managing MY money, I have never been in debt, never had an overdraft, the only borrowings I have ever had is a mortgage, now that is gone. My life is working out exactly as I planned it.

Ilona

takman

Ilona wrote: »

Why are you so annoyed about me doing things differently to you?

I'm not annoyed at all :rotfl: i'm just giving my view on how you could be saving alot of money on a money saving site!

Ilona wrote: »

I switched energy providers three years ago, and I have recently done it again. Now awaiting my first quarterly bills.

It's good to see you have switched providers, but did you do this through a comparison site such as the energy club on here to make sure your on the best deal?. I don't know of any energy company that offer the cheapest price to all their customers and are the cheapest on the market. But i'm happy to be proved wrong!.

Ilona wrote: »

I don't NEED another £500 a year, I have enough thank you. More money doesn't always bring happiness, I am lucky that I have an income that meets all my needs.

When I go to town it is an outing for me, I visit other places as well. I go to the library, the Art Gallery, visit a cash and carry, buy pet food at the discount stores, and meet with friends. I sit on a bench and eat a sandwich and watch the world go by.

If you went in to buy your sandwich and they had two identical sandwiches but one was £3.00 at the front of the shop and the other was £1.50 but near the back. Would you buy the £3.00 one because you don't need the money or would you walk to the back of the shop to get the £1.50 because its cheaper?.

Just because you don't need money doesn't mean that you shouldn't get the best deal. So why would you buy pet food at the discount store but not get the best deal on bank accounts?.

Ilona wrote: »

I get a monthly bank statement in the post. If my account was emptied, no doubt a whole lot of others would be as well. I don't expect to get a statement with zero balance on it.

I am good at managing MY money, I have never been in debt, never had an overdraft, the only borrowings I have ever had is a mortgage, now that is gone. My life is working out exactly as I planned it.

Ilona

Saying your good a managing money obviously means something completely different to you than it does to me.

If you have £10,000 for example sitting in an account earning zero interest when it could be earning £300+ a year very easily then that money is poorly managed.

Someone who good at managing money buys everything they want using the least amount of money.

Also you say you have never been in debt but a mortgage is a massive debt and you also say you have a credit card which as soon as it is used puts you in debt until you pay it off.

Lith

Two... ohhh i miss those days (i have 10)