Piggy banking: Returning to budgeting on retirement - how to piggy bank now we don't use cash

plumpplop

Thanks again for all the tips. 
You are right it is about self discipline. It's something I have had problems with in the past. I first came to MSE when I was in difficulty with credit cards.  I got in the situation where I was taking a cash advance on one card to pay the minimum payment on the others -eek!  I've learnt my lesson, debt free now and not going back!
I love the idea of £200 being a zero and I've had a look at Starling and the saving spaces look like a good idea.  I'll put a £200 baseline in each space/pot. - I'm inspired to give it a go. 
I was going to change my bank account when I retired anyway but thinking about it it may be better to do it now whilst I have my employment income.  Slighly disconcerted about it being an app.  I'm sure it's fine but what are your experiences. What about security or if you loose your phone or it's broken.  Sorry if I sound like a dinosaur!

Daliah

plumpplop said:

Thanks again for all the tips. 
You are right it is about self discipline. It's something I have had problems with in the past. I first came to MSE when I was in difficulty with credit cards.  I got in the situation where I was taking a cash advance on one card to pay the minimum payment on the others -eek!  I've learnt my lesson, debt free now and not going back!
I love the idea of £200 being a zero and I've had a look at Starling and the saving spaces look like a good idea.  I'll put a £200 baseline in each space/pot. - I'm inspired to give it a go. 
I was going to change my bank account when I retired anyway but thinking about it it may be better to do it now whilst I have my employment income.  Slighly disconcerted about it being an app.  I'm sure it's fine but what are your experiences. What about security or if you loose your phone or it's broken.  Sorry if I sound like a dinosaur!

Starling also has web browser access. https://www.starlingbank.com/online-banking/

shell16

Afternoon

I am also a Lloyds customer and found the site as you state not able to differentiate between grocery and Fuel.  I opened a Staling account, it has spaces in the account which I use for my budget.  So everything we buy is used via the Lloyds Debit card to our current account.  I then transfer the cash sitting in the spaces on Staling back to my current account.  Its a bit of faffing but I find it works well for me.

Thanks x

BooJewels

plumpplop said:

Thanks again for all the tips. 
You are right it is about self discipline. It's something I have had problems with in the past. I first came to MSE when I was in difficulty with credit cards.  I got in the situation where I was taking a cash advance on one card to pay the minimum payment on the others -eek!  I've learnt my lesson, debt free now and not going back!
I love the idea of £200 being a zero and I've had a look at Starling and the saving spaces look like a good idea.  I'll put a £200 baseline in each space/pot. - I'm inspired to give it a go. 
I was going to change my bank account when I retired anyway but thinking about it it may be better to do it now whilst I have my employment income.  Slighly disconcerted about it being an app.  I'm sure it's fine but what are your experiences. What about security or if you loose your phone or it's broken.  Sorry if I sound like a dinosaur!

I got debt free a few years ago when the mortgage was paid off and I'm absolutely determined not to go there again - I've deliberately left my large overdraft as some sort of test of self-control.  I can honestly say that I haven't dipped even a penny into it since the day I paid it off.  But that's what the £200 is for - I'm providing my own overdraft facility, as my rates are cheaper than the banks.  I actually budget for the month, aiming to keep around £300 at the end - the first £100 is a flexible contingency, as months aren't always even and the £200 is strictly for emergencies - I treat 200 as zero.   But when I flash back through the columns of my spreadsheet, I don't think I've even gone into the £300 for many months. 

In fact, thinking about this thread, I appraised my own activity for the last few months as I hadn't done it. I had allowed a certain amount per month to live off from savings and projected that forwards about 25 years (knowing that inflation and changes in circumstances would no doubt derail it quite quickly - but I needed some yardstick to make decisions on) - as of now, I'm about a grand up on my projection - in that some months I've taken less and one month I didn't take any as I got some backdated payments in.

What I do in my spreadsheet is have two columns side by side - one is projected figures, one is actual.  So I list regular outgoings like DDs at the top as they're predictable and any ad hoc spending lower down.  I start the month with a carried forward opening balance and can use the projected column to budget what is likely to occur this month - I use a loose round figure for food shopping and spending - i.e. what I've budgeted (I reduce this 'budget figure' as I spend it).  As things are paid or cleared, the number goes in the right column and I colour code the description cells too.  Therefore at any one time I can see how the month will pan out and what my current balance is too.  I only mention this as it really helps me to work that way and yet when I showed that to my family member, they didn't think it would work for them and over-complicated things and she's since set her spreadsheet up how she wants - plus she's registered for on-line banking which helps her keep on top of it, which was the core of the problem before. 

So we all think differently and you'll find what works for you.  For me, once I'd got straight and got into the habit of budgeting carefully, I don't want to blot my copybook by losing a grip on it.  So it has become a habit and you do become evangelical about it.  I was also reluctant to use a phone app - but now find it easier to do my daily checks, as the phone is separate from the computer with the spreadsheet on, so it saves flicking from screen to screen, trying to remember numbers.  Some things I prefer to do in a web browser, such as setting up payees and downloading statements.

There's a thread in the over 50s Money Saving forum about how much you can live on and retirement planning, which I dip into, as it makes interesting reading.  The range of budgets and circumstances vary enormously.  So you might pick up some ideas there too:
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

plumpplop

Thanks @BooJewels - lots of useful tips here.  You sound like me and I could easily do budget monitoring on budget versues actuals spreadsheet, colour coding, keeping track of "balances".  That's sort of what I've done in my job for the last 40yrs.  I think it will be one of my first retirement projects! Roll on May.  Also thanks for the recomendation of the forum page. 

I'm really enjoting getting back into MSE, so many helpful people out there.

Murmansk

Re Starling and security, if you lose your phone, if it's secured by a decent password, pattern or fingerprint it's pretty secure.

You can access the account on a PC too but you'll need the phone in order to get in - so it's not like other bank accounts' websites.