Paying yourself a wage

Wildsurfer

Having been in development mode last few years and with this years low milk price I have been using my current account for all my business and personal banking, which does sometime make me fall into just paying for a lot of cap ex from cash flow and not putting cash away for myself and other interests. So just wondering what way ye have it set up. Monthly direct debit to a savings fund? To another personal account? Do ye have separate debit cards for business/personal banking? Does the wages direct debit still stand if money is getting tight and it means going to the bank for stocking loans etc. In other words does it make sense to have money in a personal account making a poor return while at the same time paying interest on an overdraft/ loan?

mahoney_j

Wildsurfer wrote: »

Having been in development mode last few years and with this years low milk price I have been using my current account for all my business and personal banking, which does sometime make me fall into just paying for a lot of cap ex from cash flow and not putting cash away for myself and other interests. So just wondering what way ye have it set up. Monthly direct debit to a savings fund? To another personal account? Do ye have separate debit cards for business/personal banking? Does the wages direct debit still stand if money is getting tight and it means going to the bank for stocking loans etc. In other words does it make sense to have money in a personal account making a poor return while at the same time paying interest on an overdraft/ loan?

Without going into detail ,I have farm business account with cheque book and card ,all farm business done through that .on last day of month I dd my wage into personal account and transfer x ammount into joint account with my wife were mortgage and all house expenses come out of .my wage and that dd to personal account are first too non negotiable bills paid every month .i refuse to work for nothing

Mooooo

Business account for farm. Dd to house account then every month.

hurling_lad

I used to have a direct debit, but now I just check personal bank account a few times a week and transfer money in as necessary.

You would want to have an overdraft set up on the personal account to cover large outgoings like credit card bill or mortgage for a day or two if you forget to look at them. Also, I have text alerts set up on the personal bank account to inform me if balance goes below a certain level.

Mooooo

Phone acting up, In answer to the rest of your post, put what is required to run the house see after kids whatever into personal account, that will be needed regardless. anything over and above that could be put in a savings account and you can use that for whatever then, reinvest into farm or for poor price years or holiday or whatever. You could just leave any excess in current account too, You can move money back again if you wish. Whatever will be spent on farm will be that in tax accounts and personal stuff will be down as personal anyway so where it comes from in that regard makes no odds but easier to manage and see yourself what's what with two separate accounts

Wildsurfer

hurling_lad wrote: »

I used to have a direct debit, but now I just check personal bank account a few times a week and transfer money in as necessary.

You would want to have an overdraft set up on the personal account to cover large outgoings like credit card bill or mortgage for a day or two if you forget to look at them. Also, I have text alerts set up on the personal bank account to inform me if balance goes below a certain level.

Could I ask what bank does the text alerts or do all banks provide that service now?

Wildsurfer

Mooooo wrote: »

Phone acting up, In answer to the rest of your post, put what is required to run the house see after kids whatever into personal account, that will be needed regardless. anything over and above that could be put in a savings account and you can use that for whatever then, reinvest into farm or for poor price years or holiday or whatever. You could just leave any excess in current account too, You can move money back again if you wish. Whatever will be spent on farm will be that in tax accounts and personal stuff will be down as personal anyway so where it comes from in that regard makes no odds but easier to manage and see yourself what's what with two separate accounts

Yes at the moment with everything from sky, credit card, ATM drawings and everything farm related coming through the one account it makes life difficult for my accountant. I suppose phone, Internet etc would still go through farm a/c as it is tax deductible?

Mooooo

Yeah, everything house related bar electricity phone and diesel I supposes as two thirds of those would be farm expense I spose. Farm computer and those things as well maybe

Count Mondego

Wildsurfer wrote: »

Yes at the moment with everything from sky, credit card, ATM drawings and everything farm related coming through the one account it makes life difficult for my accountant. I suppose phone, Internet etc would still go through farm a/c as it is tax deductible?

At minimum you'd want a separate Current account, credit card and cheque book for the farm. My first year was all through my personal current account and it was a pure balls. Accounts are straight forward now. Put as much as possible through credit card so there's an.easy paper trail of all expenses and DD from current account clearing it every month.

pms7

Wildsurfer wrote: »

Could I ask what bank does the text alerts or do all banks provide that service now?

TSB do them, very handy

stretch film

I transfer weekly on internet banking to a personal joint acc.

I use the same credit card for business and personal just pay farm portion monthly through farm acc and anything that appears on statement is exclusively farm related iykwim.