Jam jar account or multiple accounts with one bank?

CupofTea

We aren't a high income family so budgeting is very important. Although we are not huge spenders the odd £1 here and there seems to add up quickly.
I'm turning my attention towards simplicity with money because I can't remember or keep on top of several accounts with several banks. It's not for me. After having children and having under 5's, the more simple life becomes the better.

My DH and I have a credit card together. Not because of spending crazily but because we get Amazon vouchers from points. So we prefer to do our grocery shopping, household shopping etc with the credit card. We don't really have any big spends coming up except a sofa maybe but we need to save first.

Then we both have a bank account each. His account is for receiving his pay from work and paying for rent, gas and electricity etc and mine is for paying for mobile phone bills as they're low anyway and paying off the credit card.

What I would like to do is have an account where I can secure eg £400 for rent, £200 for gas and electricity, £12 for phone bills etc etc so that money can't be spent at all. Then I can decide how much can be saved or how much for spending.

We don't mind if our bank accounts are joint together.

I've had people tell me they use their bank app and have multiple accounts with their bank and can easily see what is in each account.
The negative side of this is just opening so many accounts.

Then I've been told there's apps like starling where it uses the jam jar method. This sounds interesting to me too.

We don't actually pay for rent and gas and electricity with the credit card.

Okay so what is your preferred method and why? I don't want an interest account so that won't be relevant to me as I don't need it and would prefer it not to generate interest.

I'd be happy to hear of your experience with trying to simply life and bills.

colsten

Get a budgeting app like Yolt

BelowTheLine

My partner and I have totally joint finances. My partner is an avid fan of Martin Lewis and so we've always had at least 3-4 current accounts (constantly switched), 3-4 regular savings accounts, 4-5 savings accounts and a million 0% credit cards.

We now have a toddler and an infant and (possibly due to the same reasons as your's) have cut down drastically - 2 credit cards each, 2 joint banks account (containing our emergency pot) with associated regular savers. Most excess money at the end of the month just goes towards overpaying our mortgage.

The first joint bank account is used for pretty much everything - salaries, almost all direct debits,cc payments,etc.

The second joint bank account is a backup which (in conjunction with the 1st account) comprises our emergency pot.

We use MoneyHub to keep track of everything and it's been brilliant. Links to and displays info from our bank accounts, credit cards, mortgage, pensions, etc.

I would definitely recommend. It lets you set budgets for spending categories, analyse your spending, etc. As long as most of your spending is done using a card, it should help.

CupofTea wrote: »

Okay so what is your preferred method and why? I don't want an interest account so that won't be relevant to me as I don't need it and would prefer it not to generate interest.

I'd be happy to hear of your experience with trying to simply life and bills.

8ofspades

We have a joint account for bills and day-to-day stuff then separate accounts where our salaries are paid.
I personally have two current accounts with the same bank, I can see both on the banks app, and switch money between them instantly. This is so I can manage my small pot because I have a low income so not much wiggle room, I tend to transfer excess money to my second account and transfer it back when I need it to keep it separate from my personal bill outgoings (mobile phone, LISA payments etc.) The main account has an overdraft which is only ever used temporarily - since I don't use a card for the second account, so if my only money is there, I can make a payment with my main account overdraft, then transfer the money back later. It works well and I highly recommend it.

I also then have two credit cards (paid off in full) and savings accounts - I view everything through Money Dashboard, as I am the person who deals with all of the joint finances and I like to keep on top of everything. I only use Money Dashboard to see the account balances and transactions, although it does have lots of other features.

We pay into the joint account the sum of all monthly outgoings, yearly outgoings divided by 12 and a small over payment each just to keep a buffer there when we need it. We've also just started paying in our grocery budget and are only allowed essential food to come out of it (no treats, desserts, meals out etc. - we have to foot the bill for those from our personal accounts).

jonnygee2

Okay so what is your preferred method and why? I don't want an interest account so that won't be relevant to me as I don't need it and would prefer it not to generate interest.

Just like you, I dislike having too many accounts open. It over complicates everything when finances should be simple.

I use Monzo, so does my partner, and we have a Monzo joint account too.

There is a feature called 'pots' in Monzo, which is as you describe you can put money aside separately. I used to put my bills aside into a pot, and then take them out just before they come out. Monzo is good for this because it will tell you when direct debits are coming out the day before they come out - and it will notify you is you don't have enough money in your account and prompt you to move it into the pot.

However, I no longer use pots that much, because Monzo now also automatically categorises your 'committed spending' (bills etc). There's a summary tab where you can set a spending budget in categories and it shows you how much you have left in your budget, whether you are on track, how much committed spending is left to come out etc between your paydays etc.

It's so simple to keep track of spending with those features that I no longer need to set money aside from my accounts to see what I have left to spend, I just look at the summary tab and its all there. Switching to the joint account and seeing everything in that is super simple too.

Personally this works for me because I see everything I need to, and it creates zero work to manage it all.

No_6

@ colsten
you get what from saying yolt ??

colsten

No_6 wrote: »

@ colsten
you get what from saying yolt ??

What do you get for asking weird questions?

colsten

jonnygee2 wrote: »

I use Monzo, so does my partner, and we have a Monzo joint account too.

As has been discussed frequently on this forum, it's a rather high risk strategy to rely on a single current account provider. However fancy their functionality may be, you could get stranded with no access to money if there is a problem with them.

Using your current account provider for your budgeting further adds to the risk, and locks you into that current account provider to some extent.

An independent budgeting app, such as Yolt* (free) or YNAB (chargeable) gives you much more freedom, and also more functionality as and when your account portfolio grows.

(*) I trust that those watching how often I mention Yolt are pleased I have done it again

jonnygee2

As has been discussed frequently on this forum, it's a rather high risk strategy to rely on a single current account provider. However fancy their functionality may be, you could get stranded with no access to money if there is a problem with them

Well, I have savings in other banks (one that pays actual interest), and a backup Starling account.

I disagree its a risk to use a single account on a daily basis, as long as you have a backup somewhere.

Actually for many I think it's more secure - the more accounts you have the more likely you are to have to take shortcuts with security, like repeating passwords or pins over accounts, writing down security details.

I do also like Yolt but it doesn't really solve the simplicity problem. You can see your balances but then would need to log into several places to actually control anything. I prefer to do everything in one app, one place - from seeing my budgets to canceling direct debits. And if I never have to mess around with one of those ridiculous card reader things again I'll be a happy person!

Zero_Sum

Open Santander 123 lite account for bills as you get cash back on them

Flobberchops

colsten wrote: »

What do you get for asking weird questions?

I think they're assuming you get some kind of referral credit. Judging from the link I gather that's not the case.