I often get asked to look at new websites or apps and to share them with you if I think you’ll be interested in hearing about them but more often than not, I say no.
I say no because the majority of the ‘new’ and ‘innovative’ ideas that drop into my inbox are actually very similar to something that’s already out there or even worse, something you can even get from your bank with their own internet banking services. No one wants the hassle of setting up something new if there’s really no point to it, do they?
But an email from Squirrel recently intrigued me so I thought I’d have a deeper look at it and see if it is actually something that might actually be worth considering.
Squirrel is kind of like a second bank account that ‘filters’ your money for you- it’s there to help you budget and save you more of your money every month, before it even reaches your main current account. I told you it sounded interesting! 😉
So every month your income is paid into your Squirrel account instead of your bank account (you can also set this up as a standing order here you can decided how much you want to deposit as well!) and when that happens, it makes these 3 things happen too:
- Any money you’ve ear-marked for savings is deducted and kept safe inside your savings goals pot where it’ll stay until you want them, at which time they get transferred to your bank account.
- Money for bills is kept safe, then paid out to your bank account the day before the bills are due – so there’s no need to worry about accidentally spending bill money.
- Spending money goes into your bank account as normal although you can choose whether that happens in one big payment or week by week so that it’s easier to manage
The service costs £3.99 a month which is the price of a Maccydees or a pizza and although I wouldn’t normally recommend paying for a service to manage your money for you as you can do it yourself with some discipline, I do think that for people who can’t control their spending then it’s a great idea. There’s a three month free trial if you want to see if it helps you manage your money better.
Squirrel hangs on to your money, in your own account, until you need it so it’s harder to overspend what’s in your bank account and leave no money for the bills because the bill money is only paid in the day before the payments are due. You’re less likely to spend money you want to save as that money is held to one side in a saving spot and the money you set aside each month for spending is drip fed throughout the month.
This video explains it better than I can….
It’s really easy to get started and once you’re in, you can select the main reason you’re using Squirrel so it can help you achieve your money goals.
If I was using it, it would be to avoid running out of money by transferring a weekly spend allowance into my bank account as I think that would make keeping an eye on how much money I had that bit easier.
Personally, I don’t need an app like this as I keep on top of things OK as I am and I know lots of you will be the same but equally, I know that there are those of you who don’t keep track as well. Those of you who run out of money before the end of the month or worse, before the bills are paid could seriously benefit from some extra help.
What do you think – could you benefit from some extra help managing your money?
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