To think some banking practices make it so hard to track your spending?

[coffeerevelsrule]

Like many people I am panicking about money atm and trying to keep a close eye via the app of what goes in and out of my account.

I got paid 2 days ago - about £2800. My mortgage is £600 and my fuel £135 (fixed) and they've already come out along with a few other DDs but not council tax or car loan, which are the other biggies. I'm already down to £1600 despite not really having done anything since being paid.

I felt a bit sick on seeing the total and then saw that the online shop I did on Friday came out yesterday. But I am sure it had shown as having come out (not pending - actually gone) at the weekend. At the end of every month (so weekend just gone for me) I transfer whatever is left (if any...) to savings, or this month to the credit card I used when away on holiday. However, this Asda payment seemingly moving from the end to the start of the month has meant I moved about £80 more than I could really afford to and has now set me back for the rest of the month.

I'm so sick of thinking about fucking money all the time...Why do banks do this?

My main bank the same I have an actual balance ie what's available and what my balance is at that moment. I dont find it too bad but the bank I'm with I'd becoming a bit dated, interest is awful/non existent and there's been lots of issues with security in that it keeps blocking payments and people's debit cards for no reason. I've just opened an account with Chase and so far over the last few months has been great. Payments come out immediately and there is one balance so you know where you stand, I much prefer their system.

Like others have said, I don't think this is a banking issue, this is a "you" issue.

Do you have a set payday? Or is it every four weeks? You need to figure out when the latest date in the month is for payment and have all your direct debits coming out about a week later so you've always been paid your salary BEFORE your bills are due.

As for transferring money into savings, I wouldn't do that until all my bills for the month had been paid so I knew exactly how much I had left to play with.

I'm grateful for some of the tips given here but some people really need to read more carefully. I am not unable to cover DDs and I don't transfer money to savings until pay day (I look at what the balance was just before pay went in and transfer that). I haven't said I don't have enough money to cover essentials this month, I have said I'm disappointed and irritated not to have as much as I thought. This won't affect essentials and, if I need to, I can reclaim the Asda shop money (and a bit more if I need to ) from the cc/savings.

I may not be the best at budgeting but I don't think I'm totally shit at it either. I never run out of money and I don't even have an overdraft set up. It seems some people have jumped to conclusions without reading what I've actually written.

So what's the issue then? You said you were 'panicking', 'felt sick' and were 'so sick of thinking about fucking money all the time'.

Seems a bit of an over reaction to what is probably a minor annoyance.

It’s true that this makes it hard to budget if you’re relying on your bank balance for that. But it’s because payments come out in different ways.

Being sick at the thought of seeing your bank balance is no way to live OP. I really wouldn’t rely on it to judge what you can move to savings. I have a spreadsheet for things coming out of my personal account (joint is all direct debits etc) so I know what can go to savings.

OP don't forget transactions don't normally uodate over the weekend either, and things like petrol pay at pump don't show for a few days.

As PP said, if you have enough money to cover bills, i'm not sure what the issue is? Most people think about moneyball month, and most people spend everything every month

Yes, fair point. I was feeling a bit sick and ranty. I do just hate it and wish I had more, but I'm not unique there, I know!

I don't transfer money to savings until pay day (I look at what the balance was just before pay went in and transfer that).

I don’t think you’re ‘totally shit at budgeting’. But I do think you’d benefit from a more efficient system than the above, which is why I suggested you look at YNAB. It’s a great app.

A useful thing to remember is that however much you have, you have to track it if you want to stay in control of it.

You may be upset because you are feeling worried about money - most people are more worried now than they were a few years ago - or because you are tired of the responsibility of managing money - but we all have that same responsibility.

There really are very few people who don't have to check their bank balance and monitor their spending in some way.

If you don't want to check - organise your budget in such a way as you know that you only spend e.g. £100 per week in cash and everything else is DD. I have run that system for long periods before and it means no checking is required.

Sorry, but it is just a normal part fo adult life, it is boring, but it is like cleaning your teeth IMO.

I found the solution to this years ago.

1. Set up a ‘reward’ account (one that pays you to pay direct debits out of it)

2. Work out the total monthly amount of all your Direct Debits.

3. On pay day transfer the entire amount of monthly bills into the reward account.

4. Enjoy spending what’s left in your main account without giving your bills a second thought.

5. Enjoy a Christmas Day dinner from the reward money you earned.

A friend gave me this advice years ago and it was life changing.

Personally I have turned my back on the big high street banks. Many of the "challenger" banks offer much more and are just as well protected as the big ones. I used Monzo for a while but Ive moved to Revolut. Its great, there are loads of budgeting features on the app and you can easily track your spending.

Revolut is not a bank and shouldn’t be used as one.

What???? I have a current account and a debit card with Revolut.....what are you talking about?

This is what google says:
Because Revolut is authorised by the Financial Conduct Authority (FCA), it must safeguard funds as per FCA requirements, the Electronic Money Regulations 2011 and the Payment Services Regulations 2017. This means that customer funds are stored in a segregated account with Barclays and Lloyds.

On top of that the challenger banks dont tell you what you can and cant do with your own money....try buying Bitcoin through HSBC....

What a tiny mortgage you have! £600. Sorry, missing the point.

I agree, I use Revolut like a current account. I’m not sure why that’s supposed to be a bad idea.

I really like them, and they let me have a lovely metal card with my choice of design on it.

Metal cards are brilliant, I’d recommend them to everyone.

Monzo has been life changing for me

Monzo doesn't seem to have pending outgoing payments in the same way - stuff just comes off your balance immediately such as my Asda shop, petrol, etc.. Perhaps if it's ringfenced it shows as being spent instead of showing in a separate pending section (my Halifax account has a pending section where stuff shows up before it appears in the main transaction feed, but Monzo just has one transaction feed). But it does mean your balance figure is always what you have.

They’re an e-money organisation, not a bank. They don’t have a banking licence in the UK. Your money is not protected in the same way it would be at a bank and they are not subject to as stringent rules as banks.

Theyre regulated by the FCA and therefore your money (up to £85000) is protected. Think youre just splitting hairs. Anyway are you suggesting that the big high street banks are more trustworthy??? Theyre all a bunch of crooks at the end of the day.

Yes, they are a bank. They have a banking licence in the EU.

Excel spreadsheet. 5 columns: date, description, credit, debit and balance. Your credit is your wage in. Your debit is money going out. The balance is how much you have left.

At the beginning of the month, put all your DDs and anything else you think you'll spend in the debit column. Anything extra you spend during the month also goes in the debit column, preferably the same day while you remember, regardless of whether it's gone out of your bank account yet.

I can't believe people think 'budgeting' is simply checking their bank account from time to time.

They need to be regulated by the PRA as well as the FCA to qualify for the £85k Financial Services Compensation Scheme. So they need to be a bank or building society, not an e-money organisation

They are not a bank. The money are insured (some deposits aren't) but in Lithuania. Which could be bit difficult to sort if problem arises (personal experience of dealing with bank abroad and I even knew the language...). I wouldn't be using that as main account at all.