Looking To The Future With Hope

daisy_1571

I agree with dakota, stick with the monthly till renewal then pay next years in a oner as theres likely to be charges.

Pop your 2 months council tax money into your 4.25% account till then and keep a notebook or spreadsheet with all the different places that fund is going to ie at the end of February it might stand at

Total £1435

Car insurance, £342, due july £342

House insurance, £145, due aug £250

Car tax, £30, due December £180

Car mot £19, due September £38

Christmas £40, ongoing £200

Birthdays £40, ongoing, £60

House maintenance £200, ongoing £200

Car service £200, ongoing £200

Alllocated £816

Unallocated £619

Total £1435

Then in March you add another twelfth towards the things that. have an annual date - house ins, car tax, car mot, Christmas and Birthdays etc.

Any month you buy anything for Christmas or for a birthday the funds come out these lines in your notebook or spreadsheet.

If you buy something related to Household or the car needs a service or unexpected work you have the funds ready, then over the next few months you can build that pot back up to your desired levels. These are the things you know you will have to pay for but the date isn't known.

Calling it emergency fund then taking money out for its intended purpose feels a bit disheartening. Calling it the thing its intended for and using it for its intended purpose feels organised. Meanwhile its all gaining the best interest and over time you will add lines for the things you need, delete a line if it no longer serves and tweak the amounts required in each target (which of course will change the 12th that you allocate each month.)

Hope this helps, its hard to explain it written down but its a simple system so you are saving each month and you don't see a large lump sum that is not allocated. Once you have monies in each line theres less need for a general emergency fund as you are saving for all the likely things. Its a system that works well especially if there is a pot of money to start it off with.

Dxx

RhiBi

https://forums.moneysavingexpert.com/discussion/comment/81904398#Comment_81904398

Thanks, my payment is on the 12th, so if I pay it this month then cancel the direct debit, I presume that will trigger them to send a letter and I then pay the full year on 1st April?

daisy_1571

Sorry RhiBi, I misread as your car insurance!

RhiBi

https://forums.moneysavingexpert.com/discussion/comment/81904399#Comment_81904399

I think I understand! Spreadsheets are way above what my brain will allow! It’s something I do need to get my head around, so I need to try!

Dakota_Rose

https://forums.moneysavingexpert.com/discussion/comment/81904429#Comment_81904429

Me too! Ignore my rubbish advice 😂

joedenise

https://forums.moneysavingexpert.com/discussion/comment/81904428#Comment_81904428

I'm not sure they'll send a letter - it doesn't say it will on the website. You will be able to drive until 11th April but would then need to pay for the annual one from 1 April or not drive from 12 - 30 Apr and then retax on 1 May but of course that would involve SORNing the car for that period as it will be off road. Probably easiest to just cancel your DD and retax from 1 April but you can do that when it's convenient for you up until 11th.

itsthelittlethings

Love crumpets but I expect they’re not so nice when you’re eating them by necessity and especially not after three months. Good luck with your debt - if you can handle what you described you can easily keep the wolf from the door.

daisy_1571

https://forums.moneysavingexpert.com/discussion/comment/81904431#Comment_81904431

Doesn't need to be a spreadsheet, dont tie yourself in knots trying to force a system that doesn't work for you - the main thing is to get a system up and running. So

old school…a notebook, ruled off A4 size paper paperclipped in the corner, little cards in a box, jam jars on the counter

New style… ynab or other app, a bank account that allows you to allocate pots

- whatever makes sense in your brain. There will definitely be something that works, ask around to see what other people use, check other diaries on here 😀

Dxx

weenancyinAmerica

Do you have a calendar where you can put a large star on the days your bins are picked up so you don't have to worry about which day it is? Might be less stressful that way.

daisy_1571

Matt allwright, channel 5 at 12:50 today had a young girl talking through finance, she was really good if you can get it on catchup

Dxx