In our previous budgeting post (link) we talked about how we record and organise our finances. Now we’re going to talk about how we manage our finances.
Managing your finances can be as easy or as complicated as you like. We always opt for simple, and have found the below management the easiest and simplest way to see where your money is needed, and therefore how it needs to be allocated.
So to keep things super simple, we have 3 different accounts.
For me, two of these accounts are with the same bank and one is separate. If you keep your accounts with the same bank, this will generally help with transferring money between the accounts (the funds transfer immediately vs a delay of up to a few days between different banks) and will usually involve no fees. This method we’ve found shows us clearly how our money is allocated. These are the three accounts that we’ve found work for us at the moment:
- Account for Bills
I hold this account within my off-set mortgage account. This is where all our bills/rent/mortgage etc are paid from. We work out what bills we paid over 12 months, work out how much to then allocate to this account every pay day, plus add a bit extra to ensure we cover the usual yearly price hikes. This method allows us to easily see and arrange our bills. No more robbing Peter to pay Paul! - Account for Savings
This account is where we place any left over money, even if it’s only a few dollars. You will be surprised how quickly this adds up when you’re not touching it. - Account for Everyday Expenses
Our final account is our everyday account. This is where we pay for our food/petrol and all those other little expenses.
We’ve found this system works for us because we can clearly see where all our money is needed and it is then allocated out accordingly. This ensures we have solid control on where our money is going.
So by using your budget spreadsheet (link) in conjunction with your money being separated into different accounts, you can be on your way to saving for a holiday, a new car, or first home. Whatever your goals are, start taking control of your finances so your finances don’t take control of you!
Tell us how you budget and manage your money?

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