Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • TryHardSaver
    • By TryHardSaver 13th Jul 18, 8:47 AM
    • 2Posts
    • 0Thanks
    TryHardSaver
    Cash flow into bank accounts
    • #1
    • 13th Jul 18, 8:47 AM
    Cash flow into bank accounts 13th Jul 18 at 8:47 AM
    Morning all, been lurking for a while and have a question I've not found a specific answer for, or maybe I'm struggling to find it among all the information here.

    My wife and I are just about to finish a 4 year DMP in August, yipee! This is obviously huge for us, and we've learned how to budget very well over the last few years. In the last couple of months I've been drawing up some financial plans for our future, and my question is really around the mechanics of saving.

    We have numerous bank accounts; currents, joint, savings, joint savings etc... but we've not done any specific management of these, they've just been 'pots' that we've added to here and there. In my mind I'd like to re-arrange these so they work for us better.

    My question is this;

    Is it sensible to setup the accounts as dedicated accounts for different pots of money, e.g.

    My salary goes into our shared account. The shared account is where all our unavoidable outgoings come out of (bills, food etc).
    My wife's wages go into her business account
    We then setup standing orders to siphon money appropriately on the 1st of the month;

    My money is then divided into accounts from the remainder in the shared account;
    - home and car repairs / DIY account
    - holiday, xmas, birthday account, clothes etc
    - fun money account for days out, treat the kids here and there (live life!)
    - savings for new home account (targeting 30% of our income)


    My wife's income is divided into;
    - shared account to help cover outgoings
    - her business tax account
    - her business expenses account

    (accounts with growing funds will be higher interest accounts and we'll switch to these if needed, all at planning stage at the moment)

    The examples above are designed to cover everything in our budget, so although the above doesn't look like it covers everything, I just didn't want to write it all out. In my mind this would effectively work like a money sorting machine, the things you pour coins into and it automatically sorts them into the correct denominations, although in our case, the correct pot's. . .

    Is this bonkers? I feel it would remove a lot of manual playing around with money and also ensures there will always be allocations for what we need. In my financial planning we've scheduled an initial quarterly review of our entire spending to adjust things if needed, to continually improve it. We would probably start with a monthly review though to ensure we're not wildly off the mark.

    Any opinions would be greatly recieved. I know lots of people that just have a couple of accounts and just try to save 10 to 20% of their salaries, but I want more control over this. We have 4 kids so any automation of our money seems sensible and we're committed to making this work. We've learnt the hard way, and in my small mind this allows us to both keep working without worrying how x, y or z is being paid for. I also fully appreciate 'needs vs wants', so we are not planning on being frivolous with our finances.

    Thanks for reading.

    THS
Page 1
    • Mnd
    • By Mnd 13th Jul 18, 9:05 AM
    • 711 Posts
    • 869 Thanks
    Mnd
    • #2
    • 13th Jul 18, 9:05 AM
    • #2
    • 13th Jul 18, 9:05 AM
    You need to do whatever works for you.
    If your plans are too complex then you will need to streamline them

    How we work, if it helps, is far simpler.
    All our "income" goes into 1 account. I then move cash around to keep balances at optimum levels
    for maximum interest and ensuring all outgoings will be met.
    Any bills like car service just gets paid on credit card, paid off in full.
    We don't call our money as car fund, holiday fund whatever its just savings

    We do split 600 a month into a separate account for housekeeping

    Hope this helps
    • 18cc
    • By 18cc 13th Jul 18, 10:04 AM
    • 738 Posts
    • 493 Thanks
    18cc
    • #3
    • 13th Jul 18, 10:04 AM
    • #3
    • 13th Jul 18, 10:04 AM
    A lot of people do exactly what you say and I believe it is called piggybanking I am sure if you do a search on piggybanking you will find lots of help
    • 18cc
    • By 18cc 13th Jul 18, 10:07 AM
    • 738 Posts
    • 493 Thanks
    18cc
    • #4
    • 13th Jul 18, 10:07 AM
    • #4
    • 13th Jul 18, 10:07 AM
    see also

    https://www.moneysavingexpert.com/banking/Budget-planning/
    • TryHardSaver
    • By TryHardSaver 13th Jul 18, 12:20 PM
    • 2 Posts
    • 0 Thanks
    TryHardSaver
    • #5
    • 13th Jul 18, 12:20 PM
    • #5
    • 13th Jul 18, 12:20 PM
    You need to do whatever works for you.
    If your plans are too complex then you will need to streamline them

    How we work, if it helps, is far simpler.
    All our "income" goes into 1 account. I then move cash around to keep balances at optimum levels
    for maximum interest and ensuring all outgoings will be met.
    Any bills like car service just gets paid on credit card, paid off in full.
    We don't call our money as car fund, holiday fund whatever its just savings

    We do split 600 a month into a separate account for housekeeping

    Hope this helps
    Originally posted by Mnd
    Thanks for this. Yep, we want to start somewhere and refine it as we go, evolving it into something of real value that isn't onerous to manage. Appreciate your tips

    A lot of people do exactly what you say and I believe it is called piggybanking I am sure if you do a search on piggybanking you will find lots of help
    Originally posted by 18cc
    Ah, I was sure there'd be a technical term for it! Now I can start looking into it more. Thank you!

    see also

    the budget planning link I can't include because I'm new!
    Originally posted by 18cc
    Thanks, we're already working through the MSE budgeting tool, it's more detailed that what we had although we were already accounting for everything. Lots of stuff for me to read here so appreciate the link


    Thank you all

    THS
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,921Posts Today

8,564Users online

Martin's Twitter