My bank account as of this moment only has the exact amount of money left for the two remaining bills that need to come out before next payday.
This is because of the following:
I have transferred the bulk of the remaining money to my savings account. I have transferred the money that covers the budgeted categories to keep it safe.
Safe I hear you ask? Yes, you see with the budgeted categories most of them won’t be spent every month, but I will need to have the money ‘saved’ because when I do use the money from that category I will most likely be spending a couple of month’s worth of the budget at that point.
So you can see that my savings account is the logical place for them.
I have also transferred my boyfriend the money for a ticket to a football match we are going to next month.
Which left the bill money, and £3.31.
I am now going to tell you about an idea that is from the forum on the Money Saving Expert website which was created by my hero, Martin Lewis. ‘Payment a day’
Payment a Day, or PAD as it is better known on the MSE website, is where you make a payment-big or small, doesn’t matter-everyday to your chosen account, most usually a debt or savings.
In the summer of 2016 this really kept me on track when I was ‘between contracts’ (unemployed) and wanted to tackle my debts.
My tactic is to round my bank account down to, depending on how flush I am at the time, the nearest £1/£5/£10.
I no longer do a PAD everyday, as I would soon run out of money and eat into my bill money because every penny is now carefully budgeted for, but when I do have a random amount remaining in my account I send it to one of my debts.
So I know it is only £3.31 but that is £3.31 I have sent to my credit card that I won’t ever be paying interest on again. It is small, but I have paid extra to my debts.
And paying extra is what counts.
Believe me there was a point in my life where if I had £3.31 left in my account which couldn’t be withdrawn I would be going from shop to shop looking at things to that amount that I could buy.
It didn’t even matter what I was buying.
So this means my savings account is now at £100 which I’ll agree is frighteningly small for a adult-ish girl without a permanent work contract, but that is the largest balance I have had in that account for YEARS! It is triple digits! (just)
I will dip into that savings account, as it has my work expenses money in it, but putting it in my savings account first is a statement to my intention of spending as little as possible.
Today was a good day.