Piggybank technique:
Piggybank technique helps you to automate your spending so you are always aware of how much you can spend.
Step 1- Select your main categories for spending- use the budget planner (Part C) to do this. When that is done scan through to see what your major spending categories are.
Step 2- Arrange your piggies- the aim of this is to make it as simple as possible to know how much cash you have available. Many current accounts now offer ways to split money into different pots so you can manage your money in one place. The best options for this are Chase, Monzo and Starling. For the one off spends it might be best to put this money into savings accounts to gain interest.
Step 3- Use a standing order to feed the piggies- set up a standing order from your main account to each of your outgoing accounts. Set up a standing order to shift the right amount of cash into different places each month.
This should mean that all that is left in your main account is the true amount you have available to spend.
General advice:
- Do not sacrifice your living costs to make your budget ‘work’.
- Set money aside for things you love doing so you have something to look forward to so you don’t lose motivation
- Take some time to think about a financial goal you want to work towards for example would you like to save for a deposit on a house or go travelling.
- Talk to your partner about budgeting it will make it easier if you both share the same aim
- Take your time with the budgeting process and do it in manageable chunks
- Build a budget that accurately reflects your life so if you are struggling at the end of each month look at financial support to help you.
You can find more information here:
https://www.moneysavingexpert.com/banking/budget-planning/#piggybanking
https://www.stepchange.org/debt-info/ways-to-make-budgeting-easier.aspx
