Might I regret this way of budgeting?

[WellIdontknowwhattocallmyself]

I have done a budget to work out how much my essentials are so toiletries, food, and bills. I’ve cut out subscriptions and any extras. it’s a bit generous so there’s room to cut back if I really wanted to for clothes and shoes. It’s just me, DDog and DD
this year I’ve tried putting money in a savings account but then once it’s built up it gets spent which is really disappointing. I want to be more careful.
it might be much easier to save if I get into the habit of withdrawing what’s left after accounting for the essentials because I hardly ever buy anything with actual cash. Should I leave a buffer? How much?
Do you think I might regret doing this?

once it’s built up it gets spent

How does it "get spent"?

Just on bits I fancy. For example art supplies or whatever really

Yes but tell us more about the process. Do you transfer it to your current account on your phone? Do you have a card for the savings account that you keep in your wallet?

That sounds like you've identified that you're someone who, if you feel you have money, find it seems available for impulse purchases in the "nice to have" rather than "I really need" category. To build up longer term savings you might benefit from - identifying a larger longer-term goal and putting money aside specifically to that goal - some "bonus savings" accounts exist where you get a better rate if you deposit and don't withdraw in a given month

Maybe divide your money going into savings into two amounts - one smaller amount that can build up as your buffer towards unbudgeted needs, and the other amount that is intended to build up long term (set yourself a target for that maybe?). Good luck and well done for what sounds like some effective self-examination.

I transfer the money from my savings to my current account it’s a terrible habit. I just want to close that account and withdraw in cash what’s left after accounting for food and bills. The only time I use cash is when I get DD an ice cream once a week

I don't think cash will help if your problem is that you spend it. And then you just have unsecured cash sitting around at home. Too easy to get lost, damaged, stolen.

Maybe look at a different savings account that's more difficult to withdraw money from? There are some where you have to give notice for example.

Or another idea is to have a set goal for your savings. For example the amount of an overdraft, to clear it. The value of your car. A £1000 emergency fund. A month's wages. Three months wages. A deposit on a house. A holiday cost. Whatever it is, have that figure in mind and represent it somehow so that when you go to transfer money out, you're clear that you're taking £30 from your holiday or emergency fund rather than just feeling that money is sitting around spare.

Could you try transferring it to premium bonds? It take a couple of days to request money out and receive it in your current account which might give you time to have a rethink about spending it. Also you won't be able to see it every time you log into your online banking - out of sight out of mind, maybe?

I think you should allocate yourself spending money, OP, so you don't feel guilty if you spend something on yourself.

Have you seen bank accounts like Monzo where you have as many pots of money as you want, so you can put aside money for each type of thing you need?

Could you save it in premium bonds or something where you can't have instant access and then you won't splurge the savings unless it's really premeditated

Have you heard of this:

https://www.nerdwallet.com/article/finance/nerdwallet-budget-calculator

I do a spreadsheet every month where I forecast for the following month my wants, needs and savings amounts. These are 50%, 30% and 20% of my income. I also give myself a £100 buffer. Could something like this help?

I agree with others about putting your money somewhere that’s not easy to access, but if you don’t have much to save, Premium Bonds aren’t really worthwhile.

I really agree with having two savings accounts, one for treats and one for long term security, if you are ill or need a new car/boiler etc. There are quite a few savings accounts which only allow limited withdrawals, e.g.

https://www.coventrybuildingsociety.co.uk/member/product/savings/limited_access/triple-access-saver-online.html

Could you decide what is a reasonable amount to keep in an easy access account for art supplies etc and how much to transfer to a different limited access account?

I have a couple of different accounts.

One I can't take money out of until the end of the year. Money gets there eventually. So from my current account once a month a payment goes to the building society with regular access, after it has been there a month it can go into the limited access account.

I'm doing the '1p challenge' in another account, the idea is on Jan 1st you put 1p in a bank account or a jar or a money box and then on Jan second 2p.

The most you pay in is £3.65 and although I sad Jan 1st and 2nd it can be done on any date, if you keep up to it you end up with £667.95.

Money saving expert has a print out sheet.

You could consider investing in a passive stock market tracker fund. You can get an online account and do it for free.

If you have to actually decide to sell shares to get your money it is much easier to leave it alone.

You would need to plan to leave it for the long term though as the short terms ups and downs in the stock market are significant.

Are you contributing enough to your pension?

I would set up a regular savings account-maybe even a few. One for £50per month that you don't touch and another for £50 that you could touch but then lose the bonus interest.

But won't you just spend the cash? Plus there's the risk of loss, theft etc.

I agree with the others who've said you could split your savings into different pots for short/long term as well as allocating a budgeted amount for your own personal spending.

This is the only money you're allowed to spend on 'bits' so don't touch the money you've set aside for Christmas, holidays, days out with DD etc.

"Savings" is not and should not be a monolithic category.

Seperate accounts and pots need to comprise "savings" -

1. Long term savings NOT to be touched: could be a Vanguard tracker
2. Long term savings NOT to be touched: could be a fixed or limited access cash fund
3. Mid term savings NOT to be touched UNLESS emergency happens such as boiler breaks or car clutch burns to cinders: Easy Access cash accounts
4. Sinking pots touched ONLY for annual surefire expenses such as holidays, insurance, birthdays: Easy access cash accounts
5. Fancy Things pot: smaller allocated amounts for art supplies, i fancy myself a bit of boots, oooh look shiny thing - within a specific allocated amount a month. If it finishes - so sad, you will wait till next month.

Otherwise what is this "savings" you speak of? It isn't a monolithic homogenous thing!

I had a separate savings account at a different bank and would transfer proper excess cash there. Sometimes it was only a tenner at the end of the month, but I wouldn't move it unless I was guaranteed I didn't need it.

I didn't have the app on my phone, and didn't keep the account details automatically saved on the website, so if I wanted to access the money it was an actual faff. It stopped me "dipping in" and I saw it as a separate pot rather than a nice to have slush fund.

Not really about what you asked, I know, but are the art supplies for you or DD? I was only wondering as, if they’re for you, are you accomplished enough to sell any of your work? Maybe craft fairs or Facebook, Etsy etc? Then use the proceeds for your art supplies?
If they’re for your DD, or just as a creative outlet for yourself, (eg I find it helps my mental health) perhaps you could be building a - slightly smaller - set amount into your budget before saving takes place? That way you’re not feeling deflated and demotivated when you buy them out of your savings pot.

Are you saying you'd keep the savings in cash? Yes, I'd say that's a foolish move.

I agree with others - 2 savings accounts. One possibly linked to your current account making it easy to transfer treat money from. And one that is much harder to get access too. So, if you need a new washing machine, you can. But it doesn't get spent on a day out or craft stuff.