This month, I went back to school with my finances. In other words, now that groceries, fuel and energy are more expensive, I looked at my spending and created a new budget with more accurate spending targets using Starling’s Budget Planner.
The budgeting method I use is a digital version of the envelope method, also known as cash stuffing. Traditionally, this method involves separating physical cash into different envelopes to budget for different expenses.
As a Starling customer, I can use Saving Spaces, the app feature that enables me to keep money separate from my main balance, to organise digital envelopes. I can create multiple Spaces, for example for Subscriptions, Transport and Entertainment, and top them up with my target spending amount. This digital envelope system doesn’t involve physical cash and can include card payments, direct debits and standing orders.
Fixed essential costs
To kick off, I opened Starling’s Budget Planner and entered my monthly income and monthly bills, which include:
- Council tax
- TV licence
- Phone bill
(The figures and images below are illustrations, not actual figures or images from my bank account.)