Facing reality

t2rry

Now I'm with you on the back and forth but I would say don't keep the EF and use the pots money, they are there for a job already identified.  That's why you originally asked about using the EF to pay off the CC, because that feels like excess funds to you that could be given the job of clearing the CC.  Your pots are there for a more tangible reason and you know what they need to be, whereas the EF is a bit more of a stab in the dark 'just in case'.  

Sarahwithlove

OK so I have put £500 into everyday saver which acts as my pre card payment account and any money I don't want to spend goes into. So birthday money, my save the change money and excess funds etc. When get to end of month that £500 with next months £500 would leave me with only £250 to find in April for the card to be clear. I now also have 500 in the house fund and 500 in car maintenance pots which are my biggest two things I would need my EF for. 

Sarahwithlove

I really need to stop playing around with my YNAB. So after moving my EF around and planning next months budget I realised I can make min payment on my card this month and then put rest into my sinking funds which would mean they would all be filled up by March payday for the year. I'm more inclined to do this as I then know that other then topping up anything I might spend I would then be able to put everything spare after that at my card.
Then April and May budget would clear the card. Then June and July top the EF back up. And then move into August in a really good place financially with just my dad's loan which he is still insisting on £100 p/m only. I'm kind of just ignoring it really now and letting it tick itself over.
It all looks quite good providing of course nothing goes wrong in that time 🤣🙈
Right I'm gonna leave my YNAB as discussed above and see how I feel in a few days 😜

Choccygirl123

Morning Sarah,

It's a difficult decision and one I regularly think about. My hubby says leave the EF just in case, but i'd like to use it to pay some of the loan off. Going to keep saving and review it in couple more months. The lockdown is really helping saving, but we will return to normal life at some point. I love my saving pots, as are really effective at saving for big bills like car, repairs etc but I hate withdrawing and spending the cash  I think hunt is right, as a family we need the safety net of our EF.

Sarahwithlove

Choccygirl123 said:

Morning Sarah,

It's a difficult decision and one I regularly think about. My hubby says leave the EF just in case, but i'd like to use it to pay some of the loan off. Going to keep saving and review it in couple more months. The lockdown is really helping saving, but we will return to normal life at some point. I love my saving pots, as are really effective at saving for big bills like car, repairs etc but I hate withdrawing and spending the cash  I think hunt is right, as a family we need the safety net of our EF.

I've put it in my savings pot for now so have 500 in house fund and 500 in car repair fund. I think that should be OK for them for now. If something goes wrong it will come from one of those two and anything more than 1k would require a loan from bank of dad anyway. So now I'm gonna focus on the debt for now by summer I should have the card cleared and can top the EF back up and hopefully end the year in a good place financially. 

Blackcats

Sounds like a well thought through plan.  You've got the option of flexing between house and car pots if something goes wrong in either category.  Hopefully you won't need either.  

Sarahwithlove

Blackcats said:

Sounds like a well thought through plan.  You've got the option of flexing between house and car pots if something goes wrong in either category.  Hopefully you won't need either.  

That's my thinking. Car only had a service and MOT in October and not doing many miles so should be OK. Maybe a new tyre in a few months but should be OK for a bit as don't do many miles.
If anything I think it will be house fund. I need a new window soon in front room and bathroom as the ones I have aren't very good and have no insulation so let so much cold air in. But it's Feb now so probably wait till later in year and save for it separately. In fact think I may go make a window fund in my budget 🙈

joedenise

That's what I do @Sarahwithlove, every time I think of something else that I need money for I add a new line on my YNAB.  I've added about 5 new lines so far in the last year!

Added a new boiler fund when I had my boiler serviced in August and plumber thought it would only last another 2 or 3 years so said we'd better start saving!; decided it was about time our bedroom was redecorated; DH & I rejoined the golf club so we can get some outdoor exercise (this was when we were allowed of course but locked down at the moment but fees still need to be paid!); also need double glazing to the front of the bungalow as didn't do it as the time we did the back.

The only pots which get regular payments are the new boiler and the golf fees as they need paying 1 April, after that it will be a much smaller amount each month (thankfully!).  The other pots just get small amounts in them as and when.

Really don't know how I used to manage before I found YNAB!

Bluegreen143

Just caught up on your diary. I think I’d be inclined to clear the debt (I’m very impatient!) but either way could work well. I also make new YNAB categories for specific items and then hide them once they’re done eg just now we are saving for adding a small conservatory and also replacing the greenhouse panels.

Sarahwithlove

joedenise said:

That's what I do @Sarahwithlove, every time I think of something else that I need money for I add a new line on my YNAB.  I've added about 5 new lines so far in the last year!

Added a new boiler fund when I had my boiler serviced in August and plumber thought it would only last another 2 or 3 years so said we'd better start saving!; decided it was about time our bedroom was redecorated; DH & I rejoined the golf club so we can get some outdoor exercise (this was when we were allowed of course but locked down at the moment but fees still need to be paid!); also need double glazing to the front of the bungalow as didn't do it as the time we did the back.

The only pots which get regular payments are the new boiler and the golf fees as they need paying 1 April, after that it will be a much smaller amount each month (thankfully!).  The other pots just get small amounts in them as and when.

Really don't know how I used to manage before I found YNAB!

I've matched my spaces in Starling up to ynab categories as well which makes it even easier to track.