A simple banking set-up: How Anthony manages his money

Once you have a handle on things like the basics of NAB Internet Banking and using your online savings account, it’s time to see how a simple banking set-up can work in real life. Here’s a look at how Anthony (who’s not real – we made him up, just then) manages his money.

Anthony’s accounts and salary

Anthony has a basic banking set-up with two accounts – NAB Classic Banking for his everyday spending and a NAB iSaver that earns high interest on his spare money. He mainly manages his money online.

Anthony gets paid $1,300 a fortnight, directly into his everyday account. He knows that his pay comes in on a Thursday night, but he likes to be sure. That’s why he’s used NAB Internet Banking to set up a fortnightly account balance SMS, which arrives on Friday morning.

Anthony’s fortnightly budget

Once he knows that he’s been paid, he logs into NAB Internet Banking and organises himself for the next two weeks. His fortnightly budget includes:

  • $600 for rent
  • $150 for food
  • $50 for bills
  • $200 for general spending

So his total fortnightly budget is $1000. So long as he sticks to it, that leaves $300 spare each fortnight.

How does your budget look? If you don’t know yet, why not read about budgeting basics?

Regular savings and spending

If he has enough time on Friday morning, Anthony logs into NAB Internet Banking at home. If he’s in a rush, he uses his mobile phone on the train to work. However he’s connected, the first thing he does is transfer $300 from his everyday account into his savings. Then he’s less tempted to spend too much over the weekend. (Anthony could also set this up automatically if he wanted to, but he prefers to have greater control over it.)

Between the train station and work, Anthony stops at a NAB ATM and takes out his spending money. NAB ATMs let you save a “favourite transaction”, so once he’s entered his PIN he only has to press one button to get his $200 for the fortnight and see his balance onscreen.

Keeping ahead of his bills

With NAB Internet Banking, Anthony’s already set up his regular bill payments. Rather than wait for his bills to arrive in the mail, he likes to stay ahead. On the Friday night after he’s been paid he has regular bill payments go out to his telco ($50), power company ($60), and rental agency ($600).  These amounts are each a “best guess” that he’s budgeted after looking through a few previous bills

By the time his bills arrive in the post he’s close to having paid them off, and doesn’t have to pull together too much money to square things up. Sometimes he even finds himself ahead, particularly if he hasn’t been calling his girlfriend as much. On those months with three pay days, he even gets ahead in his rent payments.

By paying his billers as soon as he can, Anthony knows that his money is going to the right places. It helps him stay on top of his finances, rather than overspending after pay day.

End result: No money worries

By the time the weekend comes around, Anthony’s received his pay, boosted his savings, paid his bills, got his spending cash, and left his food money in the bank. Whenever he goes to the supermarket he knows that he has as much as he needs ready to go on EFTPOS.

But Anthony’s life is going to get more complicated

This is a simple way to manage banking, savings, and bills. But life isn’t always straightforward so we’ll keep coming back to Anthony as his things change and his banking gets more complex.

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