While most of us would agree that it makes good financial sense to budget carefully every month to make sure your income stretches to cover your outgoings, the fact so many people have several sources of funds coming into their accounts and multiple bills going back out again can make this complicated.
Balancing the books
Nearly half of bill payers in the UK have two or more regular incomes, according to the latest research* carried out on our behalf. This might include different wages for part-time or freelance work, a partner’s wages, benefits, pension payments, tax credits and child maintenance contributions.
Having more than one income can boost but also complicate your finances. What makes it even more complicated is when you also have numerous different outgoings you need to cover.
Got it covered
Five is the average number of regular monthly outgoings respondents to the survey had, with 45% revealing they have more than this. These payments could include standing orders or Direct Debits set up to cover rent/mortgage payments, utility bills, insurance, council tax, phone bills, TV subscription packages and childcare costs – and nearly one in 20 of the people surveyed admitted they had more than 10 outgoings.
Making a couple of incomes stretch to cover more than double the number of outgoings can seem like a daunting prospect. Unfortunately, not budgeting correctly could result in people feeling stretched financially at the end of the month and as though they have to make cutbacks.
In a worst case scenario, they might even find themselves in a position where they don’t have the money available to cover all of their commitments. If this causes them to miss a Direct Debit or go into an unauthorised overdraft, they might be left facing fees or even penalty charges as well.
Help is at hand
At thinkmoney, we know how difficult budgeting can be. That’s why we have made it easier for customers with our special budgeting accounts, for which fees are payable.
No matter how many incomes you have coming into your account, our Money Managers will ring-fence the funds you need to cover all your standing orders and Direct Debits for that month. The remaining cash will then be transferred to your card account for you to spend freely. This means you know exactly how much you have available to spend while your bills still get covered.
*OnePoll questioned a nationally representative sample of 2,000 adults aged 18 and over between 6th June and 16th June 2014, of whom 500 were Scottish residents.