As I am a sad spreadsheet loser who has a spreadsheet for every single thing, to the point my boyfriend says my next spreadsheet should be a spreadsheet detailing all my spreadsheets, I can tell you exactly how much of my income each year is spent on my bank charges.
Please note this applies only to my main bank, the one my current account is with, the one I use primarily. If I was to total up how much I had spent on credit card charges I would get very depressed indeed! I am saving that harsh reality for when I am debt free.
So, as you have probably guessed, in 2016 2.1% of my income that year (£10.893.65) was spent on paying for the pleasure of having a massive overdraft (total spend £228.22).
In the last 5 years, since 2011 when I first started being charged, I have spent:
on paying for being in my overdraft.
I don’t want to sound like I’m pouting, because I shouldn’t have spent money that wasn’t mine in the first place, and the bank has to have their dime too, but this just goes to show why my overdraft is now my #1 priority.
Because if that money counted towards paying back my overdraft I would have nearly done it by now.
I can also think of many better things that £761 could have gone on in the last five years. Like cats. Lots and lots of cats. 20 cats please.
In the past 5 years 11.2% of my income in total was spent on bank charges.
The year 2015 I did two calculations, one was the overall percentage spend on bank charges (2.41%) and one was the first 6 months of the year when I was still underemployed on a zero hour contract, before I got my full time job.
The percentage of my income spent on bank charges then was 4.72%
There are two primary reasons for that.
- My income was a lot less so the bank charges were the percentage of a much smaller income, making it appear larger.
- My income was a lot smaller, meaning I had less money clearing my overdraft and I was frequently not having enough to pay my bills.
Sure you might be thinking ‘less than 5% isn’t that bad, that’s like, what £50?’
Well if I was spending that much of my income on bank charges now that would be close to £724 which is nearly what I have spent in the last five years combined!
Thankfully I am no longer a twat with money.
I plan to have my overdraft cleared, if all goes well, by November. Maybe earlier if I get a lot of money for my birthday.