What do you do?

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cbdawg
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by cbdawg » Mon Jul 02, 2018 4:27 pm
Hi All

Just a quick one as I am generally considering the best way to manage my finances. I am just about to start year 3 and I have been trying all ways to better manage my monies....and wondering how do others do it successfully? I appreciate everyone finds different ways that best suit them, but I am just trying to see what others do.

So currently I have tried:

Option 1: creating lots of different savings account on my online banking and each pay day, having standing orders into each so i.e. I have an account for hairdressing, optical / dental, prescriptions, car repairs etc. Taking monies as and when is required.

Option 2: Taking the monies out as cash and keeping them separated 'under the mattress' for as / when i require it.

But I've found option 1, is easier as most goods and services are paid for electronically, but I am worried if my IP can see this 'cash' will it be taken? In effect some accounts are building up i.e. car repairs, some are for monthly spending, it just enables me to see whats what so to speak. But when I see cash, it burns a hole.

Anyway just interested in case there is an easier and more effective, less administrative way of dealing with it all.
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Foggy
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by Foggy » Mon Jul 02, 2018 4:48 pm
Most IP's would be happy with option one ... they accept that some expenses, although allowed for monthly, are paid annually (or in some cases less frequently, but have to be there "in case"). They are more concerned that all income is accounted for and the main essential expenses are as claimed. They neither have the time nor wish to put all spending under the microscope, as long as the amounts saved tally with the agreed expenses and your shares of overtime etc.

Personally I started with leaving the essential outgoings in my account to cover DD's etc and O put the remainder into envelopes, marked according to the expense which was meant to be covered. Eventually that became tedious and I opened a second bank account: Main one for al ioncome and essential bils by DD etc. with the balance transferred into the second account for "spending" --- housekeeping, petrol, repairs etc. Neither of my IP's wanted to see the second account.
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kallis3
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by kallis3 » Mon Jul 02, 2018 5:04 pm
I agree with foggy
Mrs_Brown
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by Mrs_Brown » Mon Jul 02, 2018 6:23 pm
I had set up a post office account for the occasional such as opticians and hairdressers and had a direct debit on pay day, but the payments back took 2 days, and it wasn't on hand when the cat needed the vet urgently. Cancelled that for now until I save a buffer amount in my current account for eventualities, having had my savings wiped out with the aforementioned vets bill, all my trousers coming in holes at the same time and an unexpected health issue requiring a bit of outlay initially to manage.
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