Starting the Piggybank Tenique any tips?

griffathome

Hello everyone,

Firstly may i say thanks in advance for reading and replies.

I would like to start the piggybank technique but on paper it dont look right.

In my virtual bank world i have 2 current accounts, 1 for income and 1 for expenditure.

i also have savings accounts as follows
1st - gas/electric/water
2nd -credit/loan/debt
3rd - rent/council/ins
4th - car/pet
5th - mobile phones/internet
6th - tv licence/amazon

Now i was planning on starting this from the 1st aug using what is left over in my expenditure account(currently my daily account), and have worked out what needs to be put into the holding accounts weekly as the main salary is weekly pay and also what and when it needs to be put back into the expenditure account.

the income and holding accounts all look hunky dorey and there is no sign of overdrawn times within the next year.

But my expenditure account constantly overdrawn after the first 15 days yet the correct money is going in before the bills come out to keep it covered.

I suppose what i am asking how do i start the technique from a weekly paid point of view with payments spread across the month due to weekly pay. and with little money to pump in to keep the bill account black.

has anybody been in the same situation and what was the method of getting the ball rolling so that all accounts work together?

Sorry for the essay
cheers
Darren

LobsterMemory

griffathome wrote: »

But my expenditure account constantly overdrawn after the first 15 days yet the correct money is going in before the bills come out to keep it covered.

Doesn't this just mean that your other spending is too high?

Dobbibill

You are wise to create buffer first if you are paying in weekly but bills leave monthly.

Would it be better to keep all bills in one account than in savings accounts for each category?

maybe use the savings for holidays, hobbies, birthdays, Christmas and things that aren't monthly spends. Use the current account that isn't for bills as a spending account - just an idea.

Brewer20

When I budgeted for outgoings (bills) I used to simply tot up my annual total which included most you have listed above then divide it by 12, then put that amount away per month. It helped that we started this like yourself maybe in the summer months, you have a lower outlay on the energy bills so it builds that up for the winter months.
We put this money in a savings account, easy access of course or you could put it in interest paying current account, just choose or switch to one (may get a switch bonus too) Our main account was left for daily running, weekly shop etc.
It worked very well and we knew where we stood financially so were never over stretched when that car needed servicing or the insurance or TV licence needed paying etc.
My needs and outgoings have changed now so I gave up putting money aside, it helps that I have that money readily available now. In doing what I did helped me to realise just how much is needed per month and to try and get those costs/bills down over the years.

PRAISETHESUN

I'd personally just have a single account, preferably one that gives cashback on household bills (eg. NatWest/Santander), and pay the appropriate amount into that on a weekly/monthly basis as required. I'd probably just put the full months worth of bills in at the start and then set up regular payments to top it up - if you find you constantly have too much funds in then you can siphon some off as required once it settles itself.