I first talked about getting our accounts in order back in May. We had a system, a seemingly organised system, but it wasn’t working out too well. I think by simplifying our accounts, and closing a couple of sinking fund/savings accounts, I’d made things a little more complicated. I’m all about simplifying things, but not if it causes you a problem, so I tweaked things a little.
We now have three saving accounts attached to our checking account (travel, gifts and everything else) and I will be using cash for grocery and miscellaneous spending. Hopefully this new system (+ budget) will work perfectly for us in our new home.
OUR MONTHLY BUDGET:
The spreadsheet shows our planned monthly expenditure + how we save on a month by month basis for annual expenses and travel.
ACCOUNT SET UP:
EVERYTHING ELSE FUND
EMERGENCY FUND (TAX FREE SAVINGS ACCOUNT)
- The gift, travel and everything else fund are attached to the joint checking (to provide easy access)
- Our long-term Emergency Fund’s are kept in tax-free ISA’s
- From the checking account we pay the bills and fund our online savings accounts.
- All our automatic bill payments (Direct Debits) are set to be paid between the 25th and 1st of every month and are, where possible, the paper free kind.
- Grocery is paid for in cash.
I think that’s it. Now I’m just hoping the system works.:)