The Payday Flow (UK): Bills → Buffer → Pots → Fun

Goal: one simple routine on payday that keeps the lights on, grows your buffer, and still leaves room for joy.
Why it works: decisions happen once (when you set it up), not every time you get paid.

 

1. Bills first (rent/mortgage, council tax, utilities, debt minimums).
2. Buffer next (£500–£1,000 starter; then 3 months).
3. Pots for near-term stuff (car, house, annual subs, travel).
4. Fun with what’s truly left.

Automate all four for the day after payday.

 

1) Bills (non-negotiables)

• List fixed bills + minimum debt payments.
• Change due dates to payday +2 where possible to avoid overdraft traps.
• One Bills account/pot is cleaner than ten different due dates.

Numbers example (net pay £2,200):
Rent 950 • Council tax 150 • Energy 120 • Water 35 • Broadband 28 • Mobile 15 • Transport 150 • Debt mins 120 → Bills total: £1,568

Automate: standing order to Bills account: £1,568 on payday +1

RELATED: Want to Get Out of Debt FAST? Get Real and Take Action!

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2) Buffer (peace first)

• Target £500–£1,000 quickly; then climb toward 3 months’ essentials.
• Easy-access account (FSCS protected); don’t rate-chase until you hit £1k.

Example: set standing order £200 to “Emergency/Buffer” on payday +1.
Micro-habit: if tight, start £10/week. Momentum > perfection.

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3) Pots (stop surprise bills)

Think next 3–12 months. Add rough annual totals ÷ 12.

• Car (MOT/tyres/insurance): £600/yr → £50/mo
• Gifts/Christmas: £480/yr → £40/mo
• Annual subs (Amazon, antivirus, pro tools): £240/yr → £20/mo
• Medical/dental/eyes: £180/yr → £15/mo
• Home maintenance: £300/yr → £25/mo

Example: If your pots total £150/mo, set a single standing order to your Sinking Funds pot on payday +1, then split it inside (Car, Gifts, Subs, Medical, etc.).

 

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4) Fun (guilt-free)

What’s left after 1–3 is yours. Spend it without second-guessing.

• Eating out, hobbies, small luxuries.
• If Fun feels too small → you need to trim Bills or Pots, not steal from Buffer.

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What the payday split looks like (worked examples)

Adjust Buffer/Pots up or down based on your goals; Bills are fixed, Fun flexes.

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How to automate in 15 minutes

1. Pick one “hub” account for income.
2. Create pots/spaces: Bills, Buffer, Sinking Funds, Fun.
3. Set standing orders for payday +1:

• to Bills = total of fixed bills,
• to Buffer = your monthly target,
• to Sinking Funds = your pots total.

1. Set direct debits from the Bills pot only.
2. Optional: round-ups ON; sweep any month-end Fun leftovers → Buffer.

(Banks differ, but these exist on most UK accounts: Monzo “Pots”, Starling “Spaces”, Chase “Round-ups”, legacy banks offer “Savings goals” or separate savers.)

RELATED: 

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Order of operations (when you have debt/savings goals)

1. All minimums on every debt.
2. Starter Buffer £500–£1,000.
3. If high-interest debt (APR > savings rate): funnel extra to debt (Snowball for motivation / Avalanche for interest saved).
4. When consumer debt gone: grow buffer → invest (ISA/SIPP), then optimise accounts.

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Troubleshooting (quick fixes)

• “I keep raiding my buffer.”
  Move it to a separate bank + 24h transfer delay. Label the pot “Emergency only.”
• “Annual subs still ambush me.”
  Add a calendar alert 28 days before renewal; review if you still want it.
• “Food blows the Fun category.”
  Try a weekly grocery pot (not monthly) and shop the same day each week.
• “Irregular income?”
  Pay yourself a fixed baseline “salary” into the hub account monthly; keep the rest in an Income Buffer to smooth lean months.

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Tiny scripts that save money

• Broadband retention:
  “I’m out of contract and comparing deals. What’s the best price you can do to keep me?”
• Insurance timing:
  Renew 28–20 days before expiry; quotes are often cheaper than last-minute.

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Tools that make this easier

• Free Savings Distribution Tracker (Google Sheets): paste your pay; it splits Buffer / Pots / Goals and charts it.

• Debt Snowball/Avalanche Calculator: see fastest vs cheapest route.

• Free Quick Budget Calculator: full monthly view.

 

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FAQs

Isn’t it better to invest first?
Not until you have a starter buffer and no high-interest consumer debt. Avoid selling investments to cover a boiler repair.

Where should the buffer live?
Easy-access savings with FSCS protection. Optimise rates after you hit £1k.

What about Premium Bonds?
They’re fine for some as a side pot; returns aren’t guaranteed. Keep the starter buffer in cash.