Budgeting is a great way of managing your money but it’s not always an easy thing to do. A time when budgeting can prove particularly tricky is when you have multiple incomes entering your account every month.
Research* carried out by thinkmoney earlier this year revealed that almost half (47%) of people in the UK have two or more regular monthly incomes credited to their current account. Meanwhile, nearly one in five - equivalent to almost nine million people – declared that they have three or more monthly incomes to factor into their budgeting.
Keeping track of your outgoings
Managing your money whilst juggling multiple incomes can prove difficult. But this can be even harder when the funds that you have going into your account are greatly outweighed by those going out. Those who participated in the survey, on average, had five regular bill payments to meet every month. Many participants had a lot more, however; with one in five people having up to ten Direct Debits or Standing Orders to pay every month. A further 3% had more than 15 regular monthly payments to meet.
Typically, regular outgoings can include mortgage or rent payments, as well as things like utilities and childcare fees. And at different times of the year, your outgoings are likely to increase. With Christmas only around the corner, the amount of outgoings that you have during this period may well increase dramatically. Extra spending on presents and food, as well as attending Christmas social events, are all sure to put a strain on your finances.
In addition to seasonal factors, changes in the law can also affect the number of outgoings that you have every month. This year, for example, the DVLA made changes to the vehicle tax disc procedure. Along with these changes, the way you pay for vehicle tax was also updated, with a monthly Direct Debit being offered as an additional payment method.
As part of these changes, the procedures around selling a car were also altered. On selling a vehicle now, the tax leftover on the car cannot be transferred to a new owner, although you can still receive a refund for the full remaining months left on your vehicle tax. As a result, many people may now prefer to make monthly payments to pay off their vehicle tax.
A helping hand
Taking a proactive approach in managing your money is extremely important - and there’s no more effective way to do this than by budgeting. Here at thinkmoney, we understand how difficult it can be to manage your money when you have so many outgoings to juggle. That’s why we created the thinkmoney Personal Account to help make life a little simpler.
The account, that customers pay just one monthly fee for and that comes with no penalty charges, is designed to help those who struggle with budgeting by ring-fencing enough funds from their total income to ensure that all bills are met for the month. The money that is leftover will then be free for you to spend as you like.
*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. Figures have been extrapolated to fit ONS 2013 population projections of 50,371,000 UK adults.