Budgeting Advice!

D3Dad

How do people find they best manage their budgets? 

We have been using an Ammex - had a 5% cashback period that has now ended. it now earns 0.5/1% but I am concerned looking back, that it is too easy to just spend more than the budget. 

Any advice or what others do? 

enthusiasticsaver

1. We use our Santander 123 credit card for supermarket and fuel spends.  We get 1% on supermarket and 3% with fuel but ours is an old card so I am not sure if new applicants get that.  
2. We each have £200 personal spending money and the rest of our money is divided into cars, holidays, house, rainy day/emergency fund/general savings and gifts/xmas.  Prior to retiring we used to invest some too. 
3. Anything left after our direct debits and credit card bill paid in full each month stays in our current account as a buffer and goes into savings just before payday if not spent. 

A_Random_Man

I do something similar to enthusiastic saver when I get paid I, have a list of things I need to transfer I tends to go like this:

1. Transfer an amount into Marcus account (General Savings)
2. Transfer an amount into Skipton Lisa (I'm saving for house)
3. Transfer an amount of spending money into separate account for fun, clothes, shopping etc
4. The remainder is left for bills (mobile phone, car, etc)
5. Any surplus left when I get paid the next month is then split between LISA & Marcus 

Bored

I use different bank accounts to separate money for my bills and sinking funds (HSBC) from my monthly spending money (Monzo). I also have a savings account with Marcus for my emergency fund. I do have an Amex credit card but I only use it for planned large purchases where I want the S75 protection (so very rarely). All of these accounts are overseen with YNAB4 budgeting software (the old free version). 

Willing2Learn

I also use YNAB 4 Classic version.

D3Dad

Interesting to hear about the use of Marcus for emergency savings. I currently use a simple Monzo pot but I find it far too easy to quickly pull some cash out when needed. 

Perhaps having it separate will stop this!

monetxchange

D3Dad said:

Interesting to hear about the use of Marcus for emergency savings. I currently use a simple Monzo pot but I find it far too easy to quickly pull some cash out when needed. 

Perhaps having it separate will stop this!

I'd recommend using a specific Monzo 'saver', the ones that give you a better interest rate and take 24 hours to release the money to your main account. It's amazing how less necessary that impulse purchase seems 24 hours down the line!

I still use the regular pots for saving up for things like yearly car insurance, but wouldn't save huge amounts in them as they're too tempting and accessible, as you say.