The Three C's - Coffee, Clothes & Credit Cards

Willowtree222

I've never heard of the month ahead pot? How does that work? X

Sarahwithlove

Willowtree222 said:

I've never heard of the month ahead pot? How does that work? X

You work out what your bills and minimum expenditure each month is and then save that up. The idea being that you live on the previous months wages then rather than current one. Especially helpful if you have multiple sources of income throughout the month. I use monzo for their pots so have a bills one, groceries, spending money, health and beauty , travel and other expenses pots. 

Willowtree222

Ah OK. It'll take.a year for me to be able.to.live on last month's wages x

Sarahwithlove

Willowtree222 said:

Ah OK. It'll take.a year for me to be able.to.live on last month's wages x

That's OK the idea is you find ways to save it. So round up, PADS, vinted, surveys etc 

Blackcats

Good idea to focus on your month ahead pot.  It was one of the challenges I set myself before I gave up work and although it was quite hard to do it makes so much sense.   It really helps me now as I have bits of money coming in 4 times a month so it would be very easy for me to think I'm richer than I am when the bank account is topped up 10 days before direct debits get paid.

Sarahwithlove

I only have one source of income so that's not so much an issue it's more a comfort thing for me. 

Sarahwithlove

So I've topped up all my pots from my wages and then put some into my savings pots. But now I keep looking at my total amount in the savings pots and thinking to myself you could pay your cards off and still have your 1k emergency fund left. I would also have until July for my main expenses to build my sinking funds back up. Argh now I don't know what to do. Do I clear the bigger one and just let natwest tick along? They are all on 0% so I am gaining some interest from it being in a saver. But I'm so impatient. 

Willowtree222

I'm the same, but then they always recommend six months as a just in case. 

I'd love to just pay my emergency fund, but never know what is right to do x

Sarahwithlove

Willowtree222 said:

I'm the same, but then they always recommend six months as a just in case. 

I'd love to just pay my emergency fund, but never know what is right to do x

Yes 6 months is always aim long term i suppose but I have quite good sick pay in my job and I've been there 10 years now so would get a redundancy payout. So that's why I'm only aiming for a month for now. Once debt is gone I'll work on overpaying the mortgage and then extend maybe to 3 months saved up. 

joedenise

I'm another who managed to get a month ahead prior to retiring.  It's really helpful with so many different paydays!  DH and I get our state pensions weekly so 8 paydays; I also have a small AVC pension and a works pension so we have 10 paydays a month.  As we're living on last month's money it doesn't matter that there are so many days with money coming in because it will be used next month.

@Sarahwithlove - I'd keep your money earning interest while your CCs are interest free.  You might as well be earning a bit on interest on them and the money will be there to pay the cards off when the 0% interest finishes.