Money anxiety

sausage_time

I'm the opposite.  If I have more than a few pennies in my main current account not earning interest I get stressed!

PRAISETHESUN

Theleak250 said:

I am in overdraft for the half of each month, but I save well. It’s just my method. So it’s about becoming comfortable with use of an overdraft within a limited way. 

If you're putting money into savings at say 4%, but also have your account going overdrawn paying 40% in interest, then that's not a particularly good outcome. Better off using the savings money in your current account to ensure you don't need to use your OD at all...

PRAISETHESUN

Sncjw said:

Hi all

So i have this thing to do with my bank account I freak out if I have less than £600 in it and I try to not be under 1k if I can but when I hear mt colleagues being skint near pay day I think what am I freaking out about. 

I am doing a challenge where I save £2 ! Day intona savings account so I can buy myself a nice watch. 

On pay day my husband and i move money intoa. Joint account for bills and move money to pay credit cards. 

I could use the remaining amount to pay more onto credit card but I fear that I will need the money for something going wrong in house. Also the bills doesnt include food as we just pay it out of our current accounts.  Also I want to get out of relying on credit cards. 
This month I need underwear but in my mind I don't think I can afford it and pay day is not for a few weeks ether. 

Is this normal to have a fear of being under a certain amount?

I think it's reasonable to be worried about finances. You obviously need to have enough money to live comfortably and it can cause stress when you can't do that and need to make sacrifices.

Personally I like to have a minimum level of savings - it doesn't need to be in my current account, but there needs to be a sum set aside somewhere. That's set aside purely for emergencies and doesn't get touched. The rest is earmarked for whatever goal I have in mind - some is set aside for frivolous spending, but most of it is budgeted for specific things.

It would be worth sitting down with your OH and looking at exactly where all your spending actually goes, compared to what you think the priorities should be. You might find some areas to cut down on so you can afford the things you actually need/want. Posting on the DFW boards with a breakdown of your spending might be helpful to get some input if that's of any use to you.

Theleak250

PRAISETHESUN said:

Theleak250 said:

I am in overdraft for the half of each month, but I save well. It’s just my method. So it’s about becoming comfortable with use of an overdraft within a limited way. 

If you're putting money into savings at say 4%, but also have your account going overdrawn paying 40% in interest, then that's not a particularly good outcome. Better off using the savings money in your current account to ensure you don't need to use your OD at all...

It only cost be about £3 a month so I’m not too fussed. It’s how I force myself to save.

Ksw3

I can very much relate! I do have a savings account with the same bank as my regular account, it's not the best rate but it means when I log in, its easier for me to see the totals across both accounts and feel a little better. 

Perhaps you could also start small, pop £5 in a month and then when it feels ok up to £10 etc. 

Bigwheels1111

I'm lucky to keep £100 in each of my 5 bank accounts.

My main bank has a £250 fee free overdraft for emergencies.

Evey spare £1 is in regular savers or a Trading212 ISA and an easy access account.

The cash goes around and around every month.

On the first £3850 goes to pay reg savers, then on the 9th £1000 for bills.

I treat it like a game rather than stressing about it.

This is not bragging its part of my emergency cash and house fund.

I do not have much cash to spend, so need to max the interest I can get for the future.

twopenny

Like everything else these days it's more worrying because there are so many options and rules keep changing.

However I've always had something being tucked away even if it's small. Olden days I used to buy from catalogues which gave money back into that account then when things got tough there was a small amout to withdraw.

Again, I've put surplus money from my current account in a cash isa (knew I needed to swop the car/get the heating fixed) that pays little but I look at it that the little interest is the cost of an airport hotel or some such so that feels like it's free

Also it's easy to manage with no strings to work out so if you had to withdraw the lot to cover no drama.

I used to put £2 a week into a building soc when I had a puppy. By the time she needed a lot of vet treatment I had it covered so didn't have to worry about that. There was even some left over.

A lot of small things here and there mount up.

Yorkie1

Theleak250 said:

PRAISETHESUN said:

Theleak250 said:

I am in overdraft for the half of each month, but I save well. It’s just my method. So it’s about becoming comfortable with use of an overdraft within a limited way. 

If you're putting money into savings at say 4%, but also have your account going overdrawn paying 40% in interest, then that's not a particularly good outcome. Better off using the savings money in your current account to ensure you don't need to use your OD at all...

It only cost be about £3 a month so I’m not too fussed. It’s how I force myself to save.

It might be worth double checking with the credit reference agencies whether constantly dipping into your overdraft is having an impact on your credit score, if you plan to apply for lending in the future.

VXman

I have various current accounts that get near or beyond zero quote often due to me needing to pay minimum amounts to other accounts to meet certain criteria.

I don't worry anymore as all of them have 0% overdraft facility and you always get a text when you go if you go below zero and have payments needing to go out. They usually give you into a certain time in the evening that day to top up. I have an instant saver (Ulster loyalty 4.75%) so I can so a quick transfer to cover the amount needed.

I have a (non irrational) fear of leaving too much cash in my current accounts gaining no interest!!

flaneurs_lobster

Yorkie1 said:

Theleak250 said:

PRAISETHESUN said:

Theleak250 said:

I am in overdraft for the half of each month, but I save well. It’s just my method. So it’s about becoming comfortable with use of an overdraft within a limited way. 

If you're putting money into savings at say 4%, but also have your account going overdrawn paying 40% in interest, then that's not a particularly good outcome. Better off using the savings money in your current account to ensure you don't need to use your OD at all...

It only cost be about £3 a month so I’m not too fussed. It’s how I force myself to save.

It might be worth double checking with the credit reference agencies whether constantly dipping into your overdraft is having an impact on your credit score, if you plan to apply for lending in the future.

Having a £3/mth overdraft charge (that is avoidable) would cause me anxiety, I'd consider it a failure in my ability to manage my available cash to maximise returns.