Thursday, 27 February 2014

Using More Than One Bank Account Can Help You Stay In Control

Having more than one bank account can make running a household and controlling your finances much easier. If you are employed, you will most likely have a current account that your wage is paid into. In addition, it is a good idea to have a simple deposit account. This can be used to deposit money for direct debits only. It’s a great way of being able to see your bills coming in and being paid. It keeps the statements simple and easy to read and it separates the money that is needed for bills, from the money that you can spend.

You can then take this a step further by feeding this account set amounts of money each month so that all your bills are covered over a year. This can include insurances, TV license, car tax and any other bills that need to be paid throughout the year. Work out how much they cost you per month and put it into the deposit account. As the amounts build up, and you continue to put in the right sums to cover direct debits, you will find you are in a rhythm and always able to cover your bills.

There is nothing more stressful than trying to figure out how to prevent your phone from being cut-off or how to pay a huge electricity bill. Instead, by budgeting each month and putting this money in a deposit account meant for bills only, you will gradually build up the amounts you need and be able to cover bills as they come in.

Increasingly, we are hearing about people who are working hard and yet they still cannot seem to make a dent in their finances. As a result they borrow money and the situation can get worse. Instead, taking control and being in charge, using a system that works for you, you can make your money go much further.


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