Who else is terrible with money? I've found the answer

[HoldingOutForAutumn]

I am terrible at budgeting. I have very high outgoings, with various bills going out all through the month, and various money (wages, tax credits etc) going in at different rates and no savings - so it’s all really hard to keep track of. This means I’m late to pay sometimes, and I’m massively stressed and overwhelmed at managing my finances.

I have recently found an app called squirrel, and it’s a dream come true for bad budgeters! Basically you give them your salary each month (it’s backed by the FSA, endorsed by Barclays, Which etc. - very safe). The money you need for different bills is paid into your account the day before they're individually due, so no chance to spend! You can set various saving goals, and they go straight into savings when your bills are covered. Any money you have left is divided by 5 and paid to you on a weekly basis. On months with 4 Monday's, your extra week is put into your savings. No more being skint by payday, or fretting about when bills are due and having enough money to cover it.

I have ADHD, and it’s an absolute godsend! Obviously not needed by everyone, but if you struggle with budgeting, it is amazing. I’m looking at money in a completely different way. If I switch broadband package, I can save an extra x by Christmas etc.

I was going to post a thread about it anyway as I’m absolutely fanatical about it - sure my friends think I work for them But also just saw that if you use my referral code, we both get £15 each in our savings.

https://ref.squirrel.me/20694/Samantha/ia

Even if you don’t want to follow that link, check the app out. I honestly thought I’d stand no chance of ever buying a house one day, with shit credit and no ability to save. This might actually give me that opportunity

Do you work for them?

No I have a posting history. It's just completely got rid of my anxiety over money (mostly anyway), which I'm so happy with. Nothing has ever worked before. Thought it might be useful to others.

I pay everyone at the start of the month then know how much I have to cover in direct debits then anything left over gets put into a separate account to spend

Sometimes I spend it all sometimes I don’t. But I don’t touch my current account.

*I pay everyone at the start of the month then know how much I have to cover in direct debits then anything left over gets put into a separate account to spend

Sometimes I spend it all sometimes I don’t. But I don’t touch my current account.*

I looked into getting my tax credits paid monthly, but it's around 6-8 weeks with no payments while you switch, and we couldn't survive. I guess universal credit will force us to do that soon enough, which probably will make budgeting easier (in that regard anyway). I love the weekly payments though. Some people are obviously good at budgeting, and wouldn't need this tool. I'm honestly shocking, so it's really helped me.

Following with interest

I used to have two accounts, one for bills, one for spending. I'd have a direct debit set up so that as soon as my wages came in, the amount to cover the bills would automatically go into there. Then it didn't matter when they came out over the month as they were always covered.

I have ADHD too and impulsive spending, or more for me, lack of keeping track of what I was spending can be a real problem. I don't spend impulsively so much because I just never really go into town.

I live abroad now and you have to pay a fee for bank accounts here :( So I can't do my two-account method as easily but I've been using the principles from YNAB which has helped and then I have a spreadsheet I got off Reddit called the poor man's budget planner which is basically designed for when you're living hand to mouth. It's made things much easier to keep track of and better but I still do sometimes screw up with it.

Sounds like a good idea, if you don't work for them, you should!

I wouldn’t give any app access to my bank account. I don’t think you are covered by the banks guarantee if you account is compromised and you have allowed access to a third party.

It does sound interesting.

What I like about the budget planner is that you put in your regular monthly expenses and then it splits the rest down into an amount per day. So instead of thinking oh go on I'll go for a coffee with X today, I have to look in my little planner and it tells me I only have £3 or whatever left to spend today and to get up to the £6 or so it costs to go out for a coffee, I need to wait until Thursday - or whatever. And if I go overbudget then I might have to wait two weeks - but it's always accessible eventually which means I don't feel like it's so hard to wait.

At the moment for example, I've seen a nice outfit on the H&M website I want to get for DS but it's £9.99 and currently I am overbudget and won't have £9.99 until Friday 24th. That's quite good because realistically, I don't need to buy the outfit, he doesn't need it but it's just nice. If I really want to get it, ten days isn't THAT long to wait, but OTOH if I make myself wait 10 days, the impulse might go away and I might decide not to buy it after all. And if I end the month in the green, then I have money to save or carry over until the next month if I want to.

Having just read up online apparently you are covered by the fcc using this app. I’m quite interested myself!

It doesn't sound like you do give them access to your bank account. It sounds like you simply pay them all of your money and then they pay it back in chunks - it's just direct debits. Of course, that probably means you're not protected if they didn't bother to pay it back, but it's not like you've given them access to your bank account, you've simply given them a month's salary. (Which I appreciate, is still a lot, but it's not your life savings.)

That does sound good @BertieBotts. I wish I had that kind of willpower, though. I'd buy my DD the cute outfit, make it up to £50 free delivery as 'what a waste of money paying the delivery charge', then wonder why my internet had been switched off a few days later as the direct debit had bounced

There was a poster on here who transferred £1 every morning into her savings account - I thought that was a really good idea, especially for Christmas, as most people wouldn't notice £1 going out of their accounts.

Pay all your money to me and I'll pay your bills for you

It doesn't sound like you do give them access to your bank account. It sounds like you simply pay them all of your money and then they pay it back in chunks - it's just direct debits. Of course, that probably means you're not protected if they didn't bother to pay it back, but it's not like you've given them access to your bank account, you've simply given them a month's salary. (Which I appreciate, is still a lot, but it's not your life savings.)

Yes, this exactly. It's regulated, and the money is stored in your own individual Barclays Bank account. It's not banked like regular banks, so doesn't accrue interest, but it just sits there - there's no risk. Look at the reviews on trustpilot; they're obviously making good money out of it, and more and more people are hearing of it through the papers and me

Makes no business sense to run away with your grand and throw it all away. I really think that's very unlikely.

@BertieBotts just saw your post re you being a fellow ADHDer. Impressed at your organisational skills! As I'm getting older, I'm really trying to learn techniques to keep my head above water. I struggle though, so I feel anything that makes it a little easier is a great thing!

Sounds like it's no good for the self employed or people on zero hours - anyone who doesn't have a regular set amount of income each mont. Which is a huge and increasing percentage of the workforce, They're the ones who find it hardest to budget, as you never know whether next month work will roll in or dry up. An app that could help with that could be a godsend.

Sounds like a good idea, if you don't work for them, you should!

Well if their social media guy happens to read this, they're welcome to drop me a DM and discuss job opps.

Sounds like it's no good for the self employed or people on zero hours - anyone who doesn't have a regular set amount of income each mont. Which is a huge and increasing percentage of the workforce, They're the ones who find it hardest to budget, as you never know whether next month work will roll in or dry up. An app that could help with that could be a godsend.

Absolutely. Also those who find money burns a hole in their pocket. You can always access your money, usually on the same day if requested by 1pm. But that little bit of extra time and faff can really save you buying your dog that Michael Jackson costume you just spotted in a shop window or whatever else.

I also find it so satisfying to see all my 15 or so payments set out for the month, safe in the knowledge they'll all get paid on time. Can't imagine why I'd ever be late on a bill again. Bliss.

For the people wondering about giving access to your financial information etc Squirrel is like a number of new apps and banking facilities which use something called Open Banking which came into being at the start of this year, more info here:

www.openbanking.org.uk/customers/what-is-open-banking/

I’m fine at budgeting but not great at saving, I tend to wait to see how much is left at the end of the month before transferring anything into savings which of course probably encourages me to spend more during the month because money does tend to burn a hole in my pocket. I opened a savings app called Chip (also backed by Barclays - they seem to be doing a lot like this) which takes what it thinks I can afford once a week out of my current account and puts it into savings. I get a notification a couple of days before the transfer happens so I can stop or decrease it if I want and I have instant access to my savings should I need it. The idea is that over time the app learns my spending patterns and gets more accurate about the amount I can afford to save. I’m definitely saving more that I was before through it while never feeling that I don’t have enough in my current account to survive. It also pays 3% interest which is pretty decent right now!

I think these innnovations are great and so long as they’re regulated by the FCA you’re just as safe having your money in them as you are in a ‘traditional’ bank. The banking sector needs to modernise and online solutions are the obvious route, particularly when the number of high street bank branches is plummeting. I think they’re potentially great for educating kids about money too.

I love the idea of this...watching!

Great post @Bellebelle. That app sounds really useful too.

I use Plum to save but this sounds brilliant, might help with DH's payday spendyspendyitis.

But it costs a tenner a month and you can do something similar yourself for nothing.

You just need to separate your bills account from your spending account (or accounts).

Have all income paid into one account and on the day after pay day, transfer (or set up a standing order) the amount needed to have your direct debits for the month to a second account. Get all your direct debits paid out of this account and do not touch it for any other purposes.

Set up a savings account and transfer an amount to cover annual/irregular expenses like insurance, Christmas, holidays, broken cars, pets and household goods etc etc. Either track this money using a spreadsheet or have more than one account if you like, up to you. This money is only for these things and emergencies, not to fritter on crap.

The rest of your money that remains in the first account is for food, fuel, travel and day to day spending/treats. You can split this up further if you want to into essentials/non essentials or by week, up to you. Can also withdraw it in cash on a certain day if that works for you, or have this account as a Monzo, or whatever so it can pester you with notifications every time you use your debit card.