Consider opening a separate budgeting bank account (aka ‘jam jar account’) so you can set aside funds to cover essential bills (rent, utilities, loan repayments etc.). Then you can spend from your main account without the risk of falling short for important monthly payments.

• Use a Budget Planner to work out how much you need for regular bills.

• Set up a monthly Standing Order to automatically transfer this amount from your main account into your budgeting account, just after you’ve been paid.

• For each of your bills, set up a regular Standing Order (for a fixed amount) or Direct Debit (if the payments vary), to be paid directly from your budgeting account just after the money transfer has gone in.

• You could also use your Budgeting Account to put aside a regular amount towards larger annual costs like holidays or car tax.

Find out more:

Piggybanking: The Trick to Budgeting – Money Saving Expert
Controlling your budget by setting up a number of different bank accounts, each with money in to cover a different purpose – a main bank account & a bills account, plus other main spending categories as necessary

How to Set up Direct Debits & Standing Orders – Money Advice Service