Tips and advice on managing money?!?
Basically, I am so terrible with keeping on top of my finances and I have now got a job after being a student and now earning good money so I thought now would be a good time to get a grip of my money.
I was just wandering if anyone knows some cool techniques or ways and things people do to keep their money well. For example I have my main bank account where salary goes in and my direct debits etc comes out. I have just opened another account with a different bank. Do you think it is a good idea to once I have been paid, leave enough money in my account to cover my outgoings and then transfer the rest onto my new account for my spending money? This way, all my direct debits will get paid etc when they should.
Is that a good idea or does anyone have any other ideas?
Thanks for your help.
Asked by Larry - 1 year ago
Answer: Best answer
My top tip is to write down everything (and I mean everything) you spend. If you have ever done a food/ diet diary you’ll know that writing things down makes you much more conscious of what you are doing.
You shouldn’t need to transfer money from one account to another to know what you have to spend. You should already know how much your direct debits add up to and the amount you are paid. The different is what you can spend. As part of your cash diary, not only record what you spend, but also run a cumulative total so you can see when you run out.
DO NOT rely on a bank account balance to see if you have any money left. If a direct debit hasn’t cleared yet it will give you a false picture. Use your cash diary properly, trust it and you will never unknowingly run into problems again.
At the end of each month look at what you are spending your money on. How much of your money is being frittered on takeaways and shop bought lattes?
Aim to start to save a little each month. This is money you should divert into a different savings account at the start of the month – pay yourself first.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find an IFA please go to http://www.unbiased.co.uk
Sources:
Danny Cox, Certified Financial Planner, Hargreaves Lansdown
Chartered Financial Planner, Certified Financial Planner and heads the advisory team at Hargreaves Lansdown. Danny is the Money Marketing Best Retirement Planner 2007 and Financial Adviser SIPP Adviser of the Year 2007.