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  • FIRST POST
    pinkie_pie
    Trying to sort out my spending money... advice welcome please
    • #1
    • 25th Oct 09, 10:17 PM
    Trying to sort out my spending money... advice welcome please 25th Oct 09 at 10:17 PM
    I'm tackling my debts and cutting back, and it's going okay so far. Cleared three so far and hopefully another one in the near pipeline. However, I've realised my spending still isn't controlled. (I've still got an overdraft on my account, as it came with my new account that I opened when starting my DMP.) As I have kids I decided not to close this, but to leave it there just in case (I seem to have a lot of emergencies come up and I panic that one day I will be up s*** creek.)

    Anyways up until literally the last couple of months I haven't touched it, but recently realised I am a few hundred into it. Decided to tackle the problem head on, and make cut backs, and assess where I've spent it so that it's resolved.

    To cut a long story short... got the CCCS budget out and decided to bring it up to date. Used Martins template budget planner instead, however.... I've decided to use this main account for bills only. So keeping enough in there for all SOs/DDs, plus a tiny bit extra if I have it just in case, and to transfer 'spending' money out to another card, so if it's gone, it's gone.

    I was also planning on withdrawing money from this second card to do grocery shop etc, as I know it makes you more aware of what you have/what you spend. I was sent an o2 money card so was planning on using this.

    Does this sound like a good idea? Obviously I plan on sticking to the budget. My other idea was working out EXACTLY the minimum I spend each week (train fare based on exact trips, grocery shop on bare minimum etc) and putting that on the spending card, then the rest is left in the main account, to encourage not spending it. (for example, budget included a very small amount for clothes etc.) However I'm concerned that if I see something I decide to buy eg a bargain present for dcs, then I will use the 'main' account to get it there and then, which will defeat the point as I'll have to carry the card on me and might then be tempted more.

    My other idea was to wean it down, so to start with everything that's left over minus bills, control spending and see where I'm at at the end of the month and go from there, transferring less and less.


    Does anyone do anything like this?

    My other concern was working out how much to transfer/what dates. My main income is monthly, but on 3rd Friday every month (so not the same date each month.) Then there's child benefit every 4 weeks. Tax credits every week (but different day.)
    Then some months are 4 weeks.. some are 5... most are odd amounts!

    Arrrrrghhhhh

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    Last edited by Former MSE Lawrence; 26-10-2009 at 12:27 PM.
Page 1
    • Tixy
    • By Tixy 25th Oct 09, 10:44 PM
    • 31,062 Posts
    • 39,469 Thanks
    Tixy
    • #2
    • 25th Oct 09, 10:44 PM
    • #2
    • 25th Oct 09, 10:44 PM
    Hi snowed - different things seem to work for different people. My pay date varies as well as it always a tuesday. So I worked out the last possible date I can be paid (its the 25th for me) and on that date I have a standing order transfer to my 'bills' account. This covers all the monthly DDs plus 48 (38 for various budgets and 10 as an extra). The money is then in place for all the next months DDs (which are mostly on the first except a couple are around the 12th)
    Then whats left in my 'own' current account covers fuel, groceries and any extras/luxuries.

    I am planning to set up another separate account for items that need saving for (such as road tax, presents) and will do another standing order to that account on the same day - at the moment I have to remember to allow for it in my current account and I think a 3rd account will help keep me organised.

    It works for me and I never use the debit card from the bills account.

    Just also wanted to add - as part of the DMP you will have agreed to not take on anymore credit - using your new overdraft might be in breach of this - you might want to look into this.
    A smile enriches those who receive without making poorer those who give

    or "It costs nowt to be nice"
  • pinkie_pie
    • #3
    • 25th Oct 09, 11:09 PM
    • #3
    • 25th Oct 09, 11:09 PM
    I didn't think about that... I'm not entirely sure if the account was opened before or after the DMP, it was around the same time. I know the idea is that you don't have access to anything that could land you in further debt, which I agree with, but stupidly if I closed it I know I wouldn't get any sleep at night worrying one of the kids would fall sick, or the washing machine would break (again) or I'd lose my income etc etc. I have no family, I don't drive, have no assets... it's literally the only back up if that makes sense.

    I will look into it though... what would they do? Stop the DMP? I plan to have it back under control by the end of November.
  • pinkie_pie
    • #4
    • 25th Oct 09, 11:16 PM
    • #4
    • 25th Oct 09, 11:16 PM
    And back onto my original point of posting, thanks for the reply too

    Similar then except you transfer bills out n I was going to transfer spending out.

    The saving up idea isn't a bad idea either.. only problem is I don't have the credit rating for another bank account. My main one now is a maestro (student account hence o/d given) but every other bank would/has laughed me out the door. That's the reason for the o2 card for spendings! Not that that's going so well in practice, just tried loading money on it and apparently you can't set it up regularly except from a Visa, and then tried a normal transfer and can't do that either for some reason, please phone tomorrow arghhh!
    I did debate having a 'leftovers' account.. ie for what's not spent on the weekly spend account, so then can be saved for additional debt repayments, gifts, etc, however like I said can't open one. Was going to do a sealed pot but would be paranoid about being burgled!
  • pointypenguin
    • #5
    • 25th Oct 09, 11:24 PM
    • #5
    • 25th Oct 09, 11:24 PM
    I have a bills account, a weekly spends account and a savings acccount for yearly expenses etc. My weekly account is a basic account with a debit card but no overdraft. You shouldn't need a credit check to get one of these, they only check that kind of thing if you want an overdraft.

    I have found separating things out into different accounts is much easier. My yearly bills account is a notice account so I need to go into the bank to withdrawn money. I find this really stops the temptation of "borrowing" money from it that I will never replace as I need to make the effort to go into a branch etc.
    Weekly Spend Challenge: 0/30


  • painted lady
    • #6
    • 26th Oct 09, 7:34 AM
    • #6
    • 26th Oct 09, 7:34 AM
    OK here is how I do it. Money from work goes into Halifax account, from this account comes all DDs for stuff relating to the house, eg water, council tax, tv licence etc. My child benefit and tax credits goes into Barclays account. This money is for more pleasurable things, such as petrol (I tend to fill the car up when there is money in the account) and any "social" activities such as playgroups, trips out, take aways etc. From this account, I transfer 150 a month to 5 ING accounts, divided up as
    - some towards christmas/presents
    - some towards annual car costs such as MOT, insurance, tax
    - some towards a holiday or summer days out fund
    - some towards quarterly bills, if you can get yourself a 5% interest rate, this will counteract any tax on fuel, dont think interest rates are that good now, but when they were this was great
    - some towards "contingencies" so we can afford to replace the washer for example if it breaks

    For stuff like presents, I tend to buy things as they are reduced year round, plus also look out for freebies (my niece is getting a great no 7 gift set I got for the great cost of nothing). Tesco do packs of cards, usually 10 cards of 2 designs, with blank inside so they suit any occasion, they are 1 or 2, I tend to stock up on these. buy stuff in January for christmas, last year my nephew got a 20 toy for 3. Save some advantage card points for presents too, or treating yourself to perfume etc. I dont usually find boots cheapest, but their offers on nappies can be good, or boost points in card machine, buy phone credit there if your on pay as you go to get the points. They used to have a "get 200 points when you spend 20", so 20 phone credit would be 280 points, effectively getting you the phone credit for 17.20. Bargain!
    For holidays and days out - look out for special offer deals, could be through tesco points for example, also ok to treat yourself to a pizza express every so often etc.
    Just some ideas on how it works for me. Good luck in your journey.
  • SazM030306
    • #7
    • 26th Oct 09, 8:45 AM
    • #7
    • 26th Oct 09, 8:45 AM
    Hi, I have everything paid into one account (wage, CTC etc) then I have a 'car account' a 'kids account' and a 'loan busting account' these are all online accounts with the same bank. I work out the costs of everything to do with the car over the year and transfer a set amount every week by SO to this account. I have 15 a week for fuel so I know I can't go over. Then when I buy fuel with the main account debit card, I come home and transfer the amount from 'car account' to current account.
    I do the same with kids stuff like uniforms, shoes, haircuts, presents, school trips, school dinners etc. Then when I spend I transfer from this account. The loan busting account has a set amount transferred every week that I've budgeted for. When we have enough in here the loan will be paid off
    We budget for 20 a week each for 'anything else' so an ice crem at the park, clothes for us or extra fuel, comes out of this, and we can't go over.
    This works for us, and if anything totally unexpected comes up, we have a bit in an ISA. Usually nothing comes up as we think we budget for everything. Eg when car insurance is due, we transfer it from the car account cos we've been putting it aside all year.
    Hope this helps.
    Sarah
    xxx
    THANK YOU MARTIN!!

  • before hollywood
    • #8
    • 26th Oct 09, 11:39 AM
    • #8
    • 26th Oct 09, 11:39 AM
    And back onto my original point of posting, thanks for the reply too

    Similar then except you transfer bills out n I was going to transfer spending out.

    The saving up idea isn't a bad idea either.. only problem is I don't have the credit rating for another bank account. My main one now is a maestro (student account hence o/d given) but every other bank would/has laughed me out the door. That's the reason for the o2 card for spendings! Not that that's going so well in practice, just tried loading money on it and apparently you can't set it up regularly except from a Visa, and then tried a normal transfer and can't do that either for some reason, please phone tomorrow arghhh!
    I did debate having a 'leftovers' account.. ie for what's not spent on the weekly spend account, so then can be saved for additional debt repayments, gifts, etc, however like I said can't open one. Was going to do a sealed pot but would be paranoid about being burgled!
    Originally posted by snowedunderitall
    with the o2 card you load it on via the o2 website, takes about 2 minutes to text you to confirm its on, i've got one
    things arent the way they were before, you wouldnt even recognise me anymore- not that you knew me back then
    BH is my best mate too, its ok

    I trust BH even if he's from Manchester..
    Originally posted by MercilessKiller
    all your base are belong to us
    • angela110660
    • By angela110660 28th Oct 09, 7:38 AM
    • 778 Posts
    • 2,012 Thanks
    angela110660
    • #9
    • 28th Oct 09, 7:38 AM
    • #9
    • 28th Oct 09, 7:38 AM
    Since finding MSE and doing the budget calculator this is what works for us.
    Both wages and Child Ben go in bank. Have 2 bank savings accounts and all are online.
    One savings account is for holidays/days out and car (not petrol). Other is travel insurance/house insurance; clothes; things for house; DDs clubs/school trips;birthdays and Xmas.
    Using MSE budget calc we allocated amounts for each thing = made up a spreadsheet with the headers and the amounts we pay in and they are our savings pots. We transfer over a lump amount to each savings pot on payday but break it down on the spreadsheet to see what the totals are. If we spend out of a pot we just deduct the amount to get our new total and transfer the amount back online into the main bank account to cover the payment. For example, yesterday went to the Jane Austen House museum and spent 20 - that will come off days out pot and back into main bank to cover it. Our main bank account has enough left in it to pay DDs, food, petrol, hair cuts, phone and internet.
    Free films - 2009: saw 7 films. 2010 saw 7 films. 2011 saw 7 films. 2012 saw 5 films;2013 saw 7 films; 2014 and 2015 saw 1 in each. Nothing since!
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