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Original poster

How can I be more financially organised

27 replies

superE · 29/12/2018 20:28

I get a huge payrise in January and it's going to leave me about £650 per month better off (after tax)

I'm terrible for living beyond my means and getting into debt.

I want to be able to use this extra income from the start in the way I mean to go on otherwise I will end up spending it all each month as I currently do SadBlush

I will have £1500 spare each month after all bills including food and petrol etc.

How much should I save? Should I use separate accounts for things? I really could do with tips!

OP posts:
homegrownmumma · 29/12/2018 20:32

That's a lot of money spare per month !

I would recommend putting savings into a savings account as soon as your paid , I don't know how much you spend on meals out / entertainment but personally I would be aiming to save atleast £500 out of that .

DeliveredByKiki · 29/12/2018 20:40

Get You Need A Budget and watch their free online seminars - has totally changed our lives

Ironingboard · 29/12/2018 20:41

I would personally look at the extra £650 as nothing and transferring it to a savings account or to pay off my debt. Then with the remaining money you just budget for every week, that’s what I did when I got a similar rise like this :) I managed to save a few thousand within the year and pay off all my debts (dreaded overdraft and small loan), the savings I have are now a safety net for if my car breaks down/ sudden payment comes up and it’s been so reassuring!

chockaholic72 · 30/12/2018 01:05

I split mine up and have different accounts:
Current account 1 - bills, mortgage, direct debits etc
Current account 2 - £150 pm - short term savings for car repairs, small house stuff, dentist bills, haircuts, clothes, Christmas presents etc etc
Medium-term savings - £200pm - holidays, house renovations, white goods replacements, 3 months salary just in case etc
Long-term - £100pm - stocks and shares ISA - managed by a fund manager, and I haven't bothered to look at home I get it out so I'm not tempted!

BarbaraofSevillle · 30/12/2018 17:12

Put a chunk of money away on pay day and try to forget that it exists.

choc system looks quite good, but obviously you will need amounts suitable for you.

I'd look at the Moneysavingexpert money makeover to try and get a handle on all your regular and irregular expenses and working out how much you have left over to just spend and keep that amount separate to money you don't want to spend.

MrsMoastyToasty · 30/12/2018 17:16

Pay off any debts first. Savings rates are so low at the moment that it makes sense to do that first. Then once any debts are paid off pay the same amount as you were using in debt repayments to build a nice saving.

MoorMummy · 30/12/2018 17:21

On payday , I transfer my sons money for uni rent into one account and a set amount into a savings account, plus I’m currently paying off an interest free car loan for the next year. Once all that’s done I try and live on the rest. I manage it most months but if I’m short I just transfer a little bit back to tide me over. It’s worked brilliantly for me as once it’s in my savings I like seeing it there.I used to be rubbish with money but this has really helped. Online banking is your friend 😀.

cheminotte · 30/12/2018 17:29

Read rich dad poor dad. His mantra is ‘pay yourself first’ so as others have said, decide how much you are going to save (£500 seems reasonable) and transfer it at the beginning of the month rather than seeing what is left at the end of the month. But get debt free first.

Original poster
superE · 01/01/2019 10:55

Thank you! Some great ideas there!

2019 will definitely be the year I pay of debts and start saving!

OP posts:
LoubyLou1234 · 01/01/2019 14:25

If you have debt pay that off, maybe save a little too it always helps to have a little money in case of emergencies etc but prioritise the debts.

I always put my savings away as soon as payday comes, budget for my bills and spending money then put the rest in savings. I have a minimum amount by sometimes add to this later in the month. I don't have debts to pay.

Money saving expert forums are usefully in regards to paying debt and managing your money too

ivykaty44 · 01/01/2019 16:21

Set up a standing order to coincide with payday, put £650 into a savings account. Then set up a regular saver on top for £250 - many banks do them and have that set for pay day

Over saving means you reduce your disposable income and learn quickly to live on less

ivykaty44 · 01/01/2019 16:22

This time next year you could have £10k sat in the bank as savings

littleleeleanne · 01/01/2019 16:39

I found that personally if my savings are sitting visible on my everyday online banking I would find it easy to think it's 'available money' so I transfer it into premium bonds as soon as I get paid.

Longdistance · 01/01/2019 16:45

Write down all your outgoings for the month.
Then set aside so much for savings, as soon as you get paid, put into your savings. Get an account where you can’t touch the money until it matures.
I have an access savers account for emergencies, another I pay into each month that is tied in until it matures.

lillylollylandy · 02/01/2019 14:43

How much debt do you have OP? If it were me I'd do the following:

  • set up an emergency fund - put £1,000 in there
  • throw all my spare cash at the debt til it's gone
  • start a regular saver and learn about investing

Do you have a pension?

Original poster
superE · 02/01/2019 15:07

I have the normal company pension which my employer contributes to at the statutory rate.

I also have a wedding to pay for BlushConfused

I'm also rubbish when I can see my savings account in online banking as I just dip into it. Are premium bonds a good idea? I've never really looked at them!

OP posts:
Original poster
superE · 02/01/2019 15:10

My debt is about 16k (I know I know ShockSad) includes my car loan. I have been so bad with money. I really want to use this payrise as a trigger to turn over a new leaf.

OP posts:
NoSquirrels · 02/01/2019 15:17

You need a budget for EVERYTHING. Then you'll discover that actually you don't have as much money 'spare' as you thought.

Definitely recommend YNAB. It forces you to look at the big picture, not the monthly spend.

Fleurchamp · 02/01/2019 15:26

I would increase my pension payments - dull, sorry - the statutory requirements are woefully low. Then you will never get used to the higher pay... but you will definitely put off increasing the pension payments (I know from bitter experience!)

BarbaraofSevillle · 02/01/2019 15:28

Oh, I missed that you were in debt at the moment.

Apart from a couple of £k as an emergency fund, the priority should be to pay off debt. Can you transfer to an interest free credit card?

You could be debt free in a year or two, and then have loads of spare income to save up so you don't need to borrow money to buy cars, or anything really.

Original poster
superE · 02/01/2019 15:30

I feel like Ive been drip feeding sorry!

I have set up a monthly Christmas savings pot so next year's Christmas is paid for Smile I always used to just pay for Christmas by spending all my disposable income in November and December! Blush

I need to tackle my debt whilst paying for the wedding and saving at the same time. Is this even doable? Or should I concentrate on debt and the wedding and leave saving until one of those is taken care of?

OP posts:
NoSquirrels · 02/01/2019 15:46

I need to tackle my debt whilst paying for the wedding and saving at the same time. Is this even doable? Or should I concentrate on debt and the wedding and leave saving until one of those is taken care of?

Yes, you need to tackle your debt first, and not get into more debt for the wedding. How much were you planning on spending?

Saving is a bit trickier. I would not try to save much whilst you are tackling debt as it is more important to get it all paid down. Do you have a handle on interest rates etc.? Transferred balances to 0% cards etc.?

This is why you need a budget for EVERYTHING. In the same way you're now going to save for Christmas over 12 months, you also need to save for other things like car insurance, home insurance etc. - anything that occurs infrequently but that you might just have stuck on a credit card. Break everything into monthly amounts and then you will see how much income you have that is TRULY disposable. It won't be as much as you think.

Nat6999 · 02/01/2019 15:51

I have everything on direct debit for the date that my money goes in, all my bills for the month except my bit of rent, insurance & water that gets paid weekly on the day my child tax credits go in, that way I know all my bills are paid, I do 2 online shops a month, 1 Morrison's for the bulk of my food & cleaning stuff & a small one from Ocado for the things Morrison's don't stock, this often lasts me 6 weeks. I don't have a big social life & the only things I spend on are downloading books to read, Google play for music & wool for my crochet, I spend probably £40 in total on these. Other than that I transfer my DS his money for school & going out every week, he knows that once that is spent there isn't any more & buys himself a weekly travel pass every Monday. 18 months ago I hadn't any savings, but I've managed to start to build up a reasonable amount now, I'm saving to move house & trying to save enough for new furniture & carpets.

applesandoranges221 · 04/01/2019 06:09

Would absolutely second the recommendation for YNAB - not only will it let you have a crystal clear picture of where your money is going and what you need to fund, it's taken me from £1800 in my overdraft and EVERYTHING on a direct debit to saving a flat deposit all by myself, with savings in the bank and all my big bills paid yearly. I really can't recommend them highly enough!

Original poster
superE · 04/01/2019 08:22

Thanks apples. I did try YNAB a while back and I struggled to understand it Blush maybe I try again?

OP posts:
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