Im going to be very nosey - how do you manage your money?

bigboyrocky

bigboyrocky

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First of all, I am 16, and am just interested in how is the best way to manage your money.. not meaning to be nosey, and dont feel obliged to reply if you dont want to let other people into somehting quite this personal! If your okay with it though.. fire away

Now.. im very organised, and i can see myself being quite good with money.. dont ever want to let myself get into any sort of serious debt (i think i will be living off baked beans for the first 10yrs of my working life though ). Im the sort of person that will have spreadsheets for absoloutly everything, my house will be full of labelled ring binders full of paperwork (very tidily ofc ).. you get the idea.

So.... I'd be very interested in what steps you take to managine your money... how many bank accounts do you have? Do you have saving accounts, and seperate ones for different things? Do you have a credit card? Do you ever use your overdraft (if you have one??)

Would just like to be very prepared so that i dont get into any trouble in later life as money will be very tight for a good while i imagine!

Thanks
 
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With my eyes closed ;)

I pay all of the bills/food after payday (including all my horsey stuff) then but x amount away for emergencies/savings and then whats left is left. I have a company car so thankfully, I don't have to budget for it. I do try to stagger my disposable income. My contingency is my partner!!
 
I have 3 bank accounts and a savings account. I have an account for all the house bills, and account for my horse and an account for me. Anything else goes into the savings account, this isnt much but it builds up and its there for any horse emergencies i may have.
 
Well done for thinking about these sorts of things before you get into any trouble!
What I do is as soon as I get paid, I transfer £200 to a long term savings account (via standing order into an account I can only access by going into the bank with my savings book) £80 goes into Mason's bank account in case of emergencies, and another £150 into an instant access savings account which I use to save up for holidays/car expenses/insurance.
Then at the end of the month, after all my regular bills/spending has gone out and I've been paid again, I transfer any remaining money from the previous month into the savings account and start the next month from scratch.
I find that I really don't want to touch my savings money as psychologically it's "saved" and not really spendable. I know that probably sounds silly, but if it was in my current account I'd probably spend it!
By the end of the month, if I have no money left then I go without things - I'm sometimes tempted to dip into my savings, but more often than not it makes me consider whether I really want or need something, if I do then I use the savings, if I don't then I go without. Simples!
 
well done for thinking ahead. a few tips would be.. dont buy what you dont need (ie a load of rugs for that horse!) buy quality and look after it and make it last,.. dont buy what you cant afford (ie using store cards, hp etc). avoid shopping unless necessary and make a list of what you need to get and stick to it. get into a regular habit of saving a bit .. it soon mounts up, to be used as an emergency fund for EMERGENCIES. Try to get a good job that is well paid always helps, but odd jobs such as babysitting, leaflet distribution and envelope stuffing can top up an income, also keeping you busy so less time to spend!
 
Splish & Masons mum, V helpful :) That sounds like a very good way of doing it.

I plan on never having a credit card as so many people get themselves into trouble and id hate to have the burden of a debt! Ive learnt recently how to scrape along with very little, so hopefully i'll be alright in those situations, i'd just love to be able to have a couple of saving accounts, but doubt that will happen for the first few years of when im working!!

Thanks for replying everyone, it seems most horsey people are very good at scraping along with very little :rolleyes: :p

eta - thanks ofcourseyoucan, just what i needed, very helpful.. i think i will have to have a list of spending rules to keep in my wallet, and something stuck on my debit card saying, 'do you really need this?' !!
 
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Sounds like you are going to be much better with money than i am! However my advice to you would be to set up a 'bill paying account', in my case this means that every month when i get paid i transfer £850 by standing order into this account - pays for all bills incl mortgage, gas, sky tv etcetcetc, then whatevers left over is what i can spend - which is never enough and which mainly goes towards the horse. I also cant do many nights out or buying new clothes and wk before payday- its def beans on toast.

also recommend ebay for horsey bargains... good luck!
 
I've tried savings accounts and had a wallet full of store cards etc and thought I was ok until one day I checked my credit card balance and I was up to my limit, and I had no way of paying it off without the interest kicking in. It really frightened me at the time - I had just got my first job in London, was paying rent weekly, and hadn't realised I was living beyond my means (this was the days of internet banking).

So, out went all the store cards and I cut up the credit card but didn't cancel the account. After months I paid off the debt, and since then have operated with just one current account and a credit card that is only ever used in an emergency and is paid off that night via the internet.

I don't have a high income, but this way I know exactly what I do have in the bank and quite simply if I can't afford something using my current account, then I don't have it. I haven't been in debt for 20 years and I'm happy with this, no juggling, no interest to pay etc.

You sound a lot more organised that me so I'm sure you'll be able to manage a more complicated set up, but whatever you do, do plan ahead and don't overspend!
 
With care.

Before I retired I made sure that I had a good pension for the future.

I have a separate account for the horses, field and yard maintenance.

Part of my income would go in a savings account.

Don't buy what you do not need or will use.
 
I'm a student, and so I'm currently living mainly off a loan.
I have a spreadsheet, and I have calculated how much per week I have, and then budget in the things I need (ie. rent, etc.) and then I know I have £x for whatever else I need. I also have a bit of a 'slosh' fund in the corner of the spreadsheet where I put things like birthday money and random donations from relatives. From this I judge whether I can go out, or join a certain society, or whatever else happens.

Also, keep ALL paperwork in a ringbinder carefully categorised. Sounds like faff, but my god it helps to predict bills and be able to see properly what your outgoings/ income is...
 
I have a few savings accounts, and do online banking to constantly check what im spending etc,

but a tip i'd give is....

every friday i take out £20 and store it away at home. I never miss this 20 quid, i dont notice it missing but every month its 80 quid ive saved without trying, then when the farrier, vet, saddlery splurges come along i use this little supply of months worth of £80s without touching any of my bank accounts.
 
I use a credit card for every thing. If you are good with money and pay it off entirely every month it is a great way of manageing money. Only one card so I know exactly how much I have spent , I get up to 6 weeks free credit or saving up time if I have to spend more than I like and once a month I get a bill so I know where every penny has gone (sometimes its a bit scarey so it makes me even more careful for a week or so) and if it is higher than expected I just work more to get the money together in time.
Best tip is to avoid shops....browsing makes you buy things you dont need!
 
I aim to save the same amount i spend each month -half of that goes into long term investments and the other half helps me to "spread" the costs of the year - especailly usefull come winter and christmas. I also write down everything i spend the first week after i get paid - this does focus the mind on the frippery you can buy when you feel a little flush.

The worst thing i ever did was to get an Access credit card when i left school - way back in the olden days.... i earnt £25 a week and had managed to run up a bill of £125 - and boy did that really scare me - best lesson of my life - i had to go to my dad and he bailed me out.... that was over 20 years ago and i still get a lecture at this time of year off him !

x
 
By spreadsheet! I have a total income, then take out things such as rent etc and then have a weekly budget. I also made a decision before I came to uni not to spend over £2 per meal for 2 meals a day i.e. lunch and dinner (for breakfast, large packet of Tescos cornflakes cost 45p and last about 3 weeks) but my highest weekly food bill so far is £16.50 - go round and find everything which is buy one get one free (or other offers).

As ofcourseyoucan said, never be too proud to say you don't have enough money to do something.
Good luck! :) :)
 
Spreadsheet. I list ALL of my regular monthly bills/direct debits as well as the date they go out, (so mortgage, livery, utilities, council tax blah blah) so I know exactly what I have left to spend. I also look at my internet bank account at least every other day so no "forgottens" catch me out. I use my credit card for work expenses so I can sort of keep on top of that.
 
I know that it is incredibly boring and may seem irrelevant at the moment, but starting to put money into a pension plan is a great habit to get into. It really makes a huge difference to your final pension if you start saving at 20 (or 16) rather than 30 (or 40). It doesn't need to be a lot, but just get that direct debit moving as soon as you are earning and keep on paying it.
 
Don't under estimate what it costs to live!

Even from your first pay day start saving even if you can only afford £5, but do save what you can afford not just a bit of what you can afford (if that makes sense)


As someone else said start a pension EARLY it may seem a million years away now but you are really going to need it!! and unfortunately time passes all too fast.

you are doing the right thing by never going into debt with cards, overdrafts etc.

Biggest advise tho IT ALWAYS LOOKS BETTER ON PAPER!!! but if you don't/can't follow it to the letter the reality is somewhat different, so be realistic when budgeting
 
Sensible question:)

Cash in, cash out.:)

I do have bank accounts, in three countries, one is for on-line transactions (no pay-pal either), another is a retirement fund, and the other is a slush fund for whatever.

Don't spend what you don't have is what I tell my daughter who is about your age, and exactly what I would tell anyone else who asked me.

I have managed very well for 25 years without a credit card and have no intention of EVER getting one either, my brother is thousands of pounds in debt because he got over enthusiastic with his.
 
One little tip -
IF you are good with money and DONT need a credit card... GET ONE!!!
when we went for a mortage.... i had no credit history whatsoever... mainly because i have managed my money well, never been overdrawn, never taken things on credit agreements, never had a loan ect. BUT that went against me!
the bank advised me to take out a credit card, and buy a couple of things a year on it, pay it straight off but that way i would be building up a good credit score to help get a mortage.

its stupid that having managed my money well, i was being told their was no proof as such for the mortage underwriters!

i've used my card 3 times... the last time was the 1st time in about 14months and guess what.... my card details got cloned and someone tried to buy stuff in canada with it! thankfully the bank thought something wasnt right so called me and didnt authorise it - the bad thing though is i am now pretty sure i know who sold my card details on!!!
(the appliance warehouse was where i bought my washing machine from....)
 
What a nightmare it is I stress about money all time! I work full time but never have enough to make ends meet! I'm overdrawn so half my wages get eaten up straight away! I only have a couple of hundred on credit card (emergency car repair) I pay rent on my house, car loan,petrol etc then my horse on diy livery! Thank god for my other half paying for shopping etc! Good on you for thinking ahead and do save what you can it will help you out in the long run :).
 
its a struggle but my horse is totally worth it :)

im going to draw inspiration from you wonderful lot and start putting £20 a week away into savings fund (that i set up in june and still havnt used)and only buy what i truly need for my horse.

i also have a prepay credit card that is a lifesaver ( if i buy something the money has to be on there first, otherwise no can do)
 
If you can trust yourself or someone will hold you accountable, do get a credit card. Use it when you have the cash on you anyway, and then pay it off every month. This helps you build good credit. Having poor credit isn't the only problem when it comes to buying a house, for instance. Having no credit can be seen as equally as bad. It is a very possitive thing if you can prove your reliability early on.

We have a few accounts, savings which is paid into by standing order and all incomes/wages go into our Current Account (A). All our bills are also paid out of this acount. We have a (B) account which we use for all our spending (food, shopping, etc) and a (C) account which is for the children. Caleb's DLA, the kids Child Benefit etc go into this account by standing order. Money from (C) account is savings for the kids and also for buying clothes/mobility aids/etc.

Well done you for planning ahead x
 
I'm at uni at the moment, and for the first time in my life (in relation to money) I am totally independent. I don't recieve any assistance from family so I live off what the government has lent me at the moment!

The first thing I did was to work out a budget. I bought a bus pass and paid off my accommodation in the first week and set myself up a standing order for my phone (Pay as you go was far more expensive).

I then worked out how much left I COULD have per week (about £100)

After this, I worked out on average how much I should NEED in a week, and added £5 on because the liklihood is I was a bit stingy.

£65 per week. I get this out in cash every monday morning, it has to last me for everything. This includes my weekly treat, the riding club lesson, and food, transport home if I want to see my family, a coffee at uni, everything...

I normally get through about £50, including the lesson, and anything I don't spend goes towards the next week's £65.

This means that in my account the "extra" out of the £100 that I don't spend every week is building up. I have had to dig into it a bit for christmas presents but I have kept on top of how much I have so I don't get overexcited!

The day before the next section of my student loan comes in, ALL remaining money in my bank account will be transferred to my savings account, ready to start the whole process again. This means I will save (I predict) about £650, possibly more, as I had a little money in there to start with. If I can manage to do this 3x a year, for the next 3 or 4 years, I should have a decent saving and can hopefully use that either as the start of a house deposit, or as a startup for my new "grownup" life.

I don't have a horse, because to have one would be impossible. I am studying Law so I don't think I would have time to work and own a horse, but I would need to do both... therefore, hobby has been sacrificed... at least during term time!!

I also don't drink, smoke, go out very often or buy clothes willy nilly...

I will get a temporary job during the breaks and the money I earn will also be saved.

By doing this, I hope to minimise my debt and maximise my savings, meaning when I finish my degree I will be in the best place possible finincially!

Hope this long winded answer helps, even if just a little :)
 
Ive got an ok wage coming in but each month pretty much all of it is done with so still at the age of 25 im living at home with my mum (dont mind though!)

the advice on pensions is useful.... I started from age 20 paying £150 a month into a pension which for now i think is enough.

whevever im at tack shops etc and see some MEGA bargains even if its not something I need I'll buy them then sell on ebay. the amount of money that creeps its way up in paypal is lovely should you then want to splurge on something (my ebay fund is currently saving for a point two jacket over the winter months)

also on ebay purchases (if its something you need for yourself) its worth watching items and then if they dont sell emailing the seller and putting a cheeky offer in, had loads of bargains this way!

another tip.....dont smoke!!!! I do and have for a long time. as well as being bad for you (we all know that) it is also a bloody horrendous waste of money, makes me cringe everytime I tot it up, I really MUST stop!
 
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