At the moment for various reasons, I have 3 current accounts, but all of them run at near empty. By this I mean that deliberately by the end of the month they are at or close to zero – ready to be filled up with the next months pay.
There are some inherent drawbacks to this system – like if I need to write a cheque for a large budgeted purchase then I have to transfer money from my savings account first. It also means that in the event of a bank error not in my favour, I’m going to end up overdrawn. I also have to make sure that I get paid any expenses, which I put on a credit card, get paid before the bill comes in.
I’m pretty sure that if I had a float in there though, it would get spent. I’m much better off with the out of sight, out of mind aspect to my savings. Also, I’m pretty used to the zero-budgeting, zero-balance concept, and although I have a high interest current account, I make more money by using my savings account.
What do you do, and how is it working for you?
Image by coed
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