Budget Question ->

learning_to_drive

Hi,

When a budget is done, and savings are obviously made, cutbacks on certain items leaving you with a surplus.

What do you do with that money? Overpay on other debts?

When we have done a budget before, we have always found that we dont end up with £200 in the bank like we said, we have obviously overspent, so we must stick to the budget strictly!

Question is as above, what do you do with the surplus money? We have a small overdraft so I guess that would be first, but how do you use the excess? I have a plan for my credit cards (highest apr first etc) so they would be first.

LilacPixie

pay the debts. if you look at the snowball calculator at whatsthecost.com it shows you how much interest you could save by overpaying the minimum payments on your debts but a fixed amount.

MrsTinks

Overpay the debts... Or once they have been paid off then you save it towards something Deposit on a house, a holiday, a new car etc...
Personally I overpay the debts
Although in the near future I might need to set some of it aside for some dental treatment I don't think I can reclaim through my BUPA policy that work give us for free... *sigh* !!!!!! it millennium hand and shrimp!






*for those who think I've lost the plot read more Terry Pratchett and all shall become clear

Puzzledbubbles

Hey,

Ive only just started doing the budgeting thing, ive decided to transfer the surplus straight out of the account into my saver, that means i have to stick to the budget (but if something comes up i dont need to use my cc or anything)

HTH