Hi folks and welcome to another five minute Friday here on Meaningful Money

thank you so much for joining me shall we?

regular listener Lily of the Valley emailed me and asked the question about

basic cash and money management day-to-day budgeting and handling cards and cash and stuff like that.

So I've got five tips for you to help you do that.

So let's put five minutes on the clock down here in the bottom left.

I always get that wrong way around. But let's crack on. The biggest

tip I can give you for day-to-day money management is to have two bank accounts.

The idea with that is that one of them is where all your direct debits or your standing orders your

regular bills go out of and when you get paid at the beginning of the month it

gets paid into that account and then because you know the value and the amount of all the bills that are going out of there

you can leave that much money in that account and whatever's left hopefully there's some left

whatever's left you can transfer to your second bank account and that is your spending account.

So at home we call it our bills account and our spending account.

What that means is that you don't really have to budget the stuff in the bills account because it's kind of done

for you. The only things that you actually have to budget is your spending account and

that's the stuff which buys the day-to-day things, food, petrol in the car, stuff for the kids, all that sort of thing.

And it's easier to budget that smaller amount with fewer numbers of categories

than it is everything.

I've been working this way for 20 years now and it's just a God send.

Makes life so easy.

It means essentially that you don't have to budget very much at all.

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