Lydia here from Financielle.
It’s payday week for a lot of us, so I thought I’d pull back the curtain and show you how I budget on payday as someone who works for the company helping women get their money sh*t together. (Yes, we do actually use our own app. No, my budget isn’t perfect – see my recent f**k-up confession for proof.)
My budget doesn’t change much from month to month, and that’s the point. I create it in the Financielle app, where I can duplicate last month’s budget and tweak it in a couple of minutes, then when the money lands I move everything into Monzo pots – one for each part of my budget.
Here’s how it works.
Before payday: the ten-minute prep
A few days before I get paid, I have a quick look at last month. What worked? Where did I overspend? (There’s usually one category I misjudged!)
Then I look ahead. What’s coming up this month? Birthdays, bills, trips, anything that needs money setting aside. If something big is on the horizon, I adjust my sinking funds – although most months they stay pretty consistent, which is exactly how I like it.
That’s it. Ten minutes, and payday-me knows exactly what she’s doing.
My payday budget routine
We’ve got a full guide to budgeting on payday if you want the step-by-step version – this is how those steps play out in my actual life.
1. I start with my total income
Mine’s simple – one salary. If you’ve got side hustles, freelance work or child benefit, it all goes in. This is your starting number, and it’s the amount you’re in control of.
2. My fixed expenses come straight out
Rent, council tax, subscriptions, phone bill – all set up as direct debits that come straight out of their Monzo pots. Each bill has a home, so the money’s ringfenced from the moment I get paid and I can’t accidentally spend what’s already spoken for. It also means one glance at my pots tells me everything’s covered – no mental maths required.
3. I fill up my sinking funds
This is my favourite part (I’m aware of how that sounds). Each sinking fund gets its own Monzo pot – Christmas, car costs, holidays, and the big one right now, the wedding. My holiday fund is currently being rebuilt after Mallorca emptied it, and I can’t wait to watch it climb back up.
Sinking funds are the reason a car MOT or a December full of presents doesn’t send me anywhere near a credit card.
4. I set my flexible spending
Food, petrol, takeaways, dining out – the day-to-day stuff. I keep a £100 buffer in my main account and reimburse myself from the right pot whenever I spend, which means I can always see exactly what’s left. Checking in regularly saves me from that mid-month “where did it all go?” spiral.
5. Whatever’s left is my excess
Once everything above is covered, the leftover is my excess – and mine goes into my Stocks and Shares ISA. Some months it’s a decent amount, some months (hello, wedding costs) it’s more modest. Both are fine. If your excess is negative, don’t worry. This is valuable information, so use it to work out whether it’s an income problem or an expense problem, and go from there.
The goals behind the budget
Right now my excess and sinking funds are working towards three things: the wedding, rebuilding that holiday fund, and investing in my Stocks and Shares ISA for future-me.
Having named goals is what makes the routine stick. I’m not moving money into pots for fun (okay, slightly for fun) – every pot is a thing I actually want.
So tell me – what does your payday routine look like, and what’s your next money goal?
This content is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser.