www.iva.co.uk

Hi
Our IVA has just been approved and I was thinking of keeping money in our account for our direct debits etc and then putting the proposed amounts of money for our other expenditure in separate envelopes, so say have one for food, one for our car expenses etc. I feel we probably use our debit cards without thinking but feel if we have the money we may think twice.
Just wondered if people think this would work or is a little crazy.... or is anyone has any other good tips it would be appreciated.
Thanks x

Hi, I opened a savings account and transferred any spare money albeit only a little bit (but contingency went in there). You could also consider two current accounts one just for direct debits etc, the other for other expenditure allowances.?

whatever you choose is up to you and nothing is crazy. The only thing with cash and envelopes it could potentially be a security issue in my opinion and for myself maybe a temptation but you've probably more will power than me x

Hi Joanne. When I started I bought one of those savings tins with the different compartments in, left the direct debit money in the main account to take care of itself, then used cash for everything.

After a year or so I graduated to using my debit card, but then, still keeping all DD monies in one account, I opened a second account to act as my "tin".

I always, and still do, kept a close check on the balances ( internet banking is great that way) by logging in at least once a day (often more).

I only had the one account, but kept a total of the direct debits and on pay day took this off. The remainder was to spend. I then took off as much as I could to the big bills, car tax/12, dentist/12, christmas/12, car service/12 this then got put in a savings account that I opened in a local credit union. Then the rest of the money was divided by 4 or 5 depending on the month. 4 weekends or 5 then I took out the right amount (-£10) at the beginning of the week and that was all we could spend the missing 10 was for the end of the week if absolutely desperate if not it went into savings. We also had a tin at first so all change went in that at the end of the week. We had a few disasters but did manage to make our way through the IVA and the last payment has now gone from the account, but the savings account remains and the same money has gone in. Just asked my son what his memories were and his response was CAR BILLS I HATED THEM. so you can see where our stresses were. Needless to say he has no ambition to drive or own a car. I would suggest that you work to a system that suits you but I would say try to make a survival tin, as there are months when you will be close to the wall especially at first. But if your I and E is fair and thought out then you should be OK. We got caught out as our IVA started in June and the car tax was September. So we had to find 12 months payment (in actual fact only 6) but had not put that amount aside. Only made that mistake once.

A few people have gone down the multi envelope route. Whatever suits you is the way to go. I used several tin cans to keep allowances separate then moved on to a yorkshire bank online saver account to help keep mot/car repair money safe.

Paul

I use a spread sheet and have it to show a year ahead so I know what to expect every month.

I used to split money for food and fuel and then put the rest of the money not taken up by direct debits into envelopes per week ... Whatever was left at the end of the week would go into a savings pot for a treat !

Thanks guys. We have really struggled this month and have scrimped around for money and have very little until payday on 31st. We are determined though to work within the budget set out in our IVA and will explore all the above ideas. Great to have support on here.

We've all been there. The last week of a 5 week month often resulted in tesco value beans on toast type meals for us. Its amazing how resourceful you can become.

Paul

I agree that being resourceful especially towards the end of the month really does come into play. You'll get there it's early days and once you settle in budgeting becomes second nature.

Cash is king for me- I draw out my budget for the weeks "housekeeping" which for us includes food shop,fuel, kids bus money & dinner money & Separate everything for the week into 3 purses. You can't spend more than you have got.. & leave the debit card at home. The other thing I do every year is buy one of those clay pot saving jars that you have to smash up to get into & I save a bit of cash in that every week - once the dosh has gone in you can't get it back out ,,so by the time the next summer hols comes round I've got some camping money.

The post office do a budget card aswell for paying bills. I go into the post office every week & put cash on the budget card for the yearly car tax bill.

Even though out of our IVA I still search for those food bargains on the shelves at 3pm on a Sunday afternoon or 10am on a Monday morning ...

I also have started buying in bulk my meat and then portion controlling it into bags before freezing. I was finding that a pack of mince was too much for two of us, but not enough for four...so would put some in a bag in the freezer and do the same the following week.... works out cheaper in the end !

I also have started to do my shopping in Aldi - what was a £75 a week shop in Sainsbury or Tesco is now £45 in Aldi - their fresh meat and vegetable products are great. I use Poundland for other bits and pieces expecially cleaning products.

Hey Joanne,

The 'Cash Envelope' system works really well from what i've seen. If you google it or watch some videos on youtube it will tell you exactly how best to use and it will save you lots!

It's definitely proven to work for some people but I'm scared to try it as I don't really like keeping cash on me because I spend it even easier than my card but I also don't like having cash hidden the house!

Let me know what you've chosen as I would be interested - lots of great advice here from what I have read!

Hello, May, and welcome to the forum. Please take note of the posting dates of threads you are responding to. This one was started over 8 years ago and Joanne is probably no longer a visitor.