How to make money last until payday

We've all been there. You’ve just been paid, all of your bills go out, and you’re left wondering how you’re going to make what’s left last until your next payday. Although it’s a familiar story for many of us, it’s nothing to be ashamed of. There are ways you can make your money last until payday without needing to worry or get yourself into financial difficulty.

Here, we’ll guide you through the simple changes we can all make to help make your money last until payday. And some of these changes are incredibly simple and easy to implement!

In this guide:

• How to make your money go further
• Improving your financial health
• What can I do if my money runs out?
• Where can I seek further support? 

How to make your money go further

Anyone trying to improve their cash flow and ensure their money lasts until payday is going to have to get good at budgeting. Short of making more money, effective monthly budgeting is the key to financial peace of mind for most people.

If you’re wondering how to make your money go further or how to spend less, we’ve pulled together some tips and insights below. Here are the steps you need to follow to make sure that your budget actually works and that you still have money to spend or save at the end of the month.

And thanks to all the fantastic online money tools and apps that are available, it's never been easier to create and stick to a budget!

1. Figure out how much money you have available

The very first step you need to take when creating a budget is to work out exactly how much money you have to spend after payday. This should be the amount you’re paid minus your essentials costs. We’ve listed out essential costs in the point below.

2. Plan for your essential costs

Your essentials are all of the costs which you have to make, and they include:

• Rent/mortgage payments
• Food and other groceries
• Utility bills
• Council tax
• Debt repayments
• Interest charges payable on debts/credit cards
• Car expenses
• Travel/petrol
• Costs associated with dependents (school dinners/trips)
• Medical expenses
• Insurance
• Clothing and footwear when necessary
• Toiletries
• Internet/phone bill
• TV licence

We know this is a daunting list and it's by no means exhaustive, but it's much better to be realistic about your essential costs rather than finding yourself short before the next time you’re paid.

Once you have your essentials calculated and taken away from your salary, you can start to work out where to spend less. Our guide on budgeting made simple includes more tips on setting a budget, including a helpful budgeting tool you can use to calculate your monthly income and expenses.

3. Pay attention to your spending habits

If you’re wondering how to cut costs, the best way is to look at where you’re spending most of your money outside of your essentials. Do you buy water or coffee when it might be free at work? Do you buy takeaways at the weekend when you’ve already got some great recipes to cook at home?

We know a treat here and there won’t make a big difference, but they do begin to add up when bought regularly. Seeing how much you can cut from your spending is an easy way to get started.

4. Evaluate luxuries

We're not suggesting you give up holidays, takeaways, and new clothes forever, as that would be unrealistic. It's more about looking at your spending habits and finding one or two luxuries that you can make do without. There’s always a reason to say ‘yes’ to this kind of spending so it’s about evaluating the need vs. the cost.

And it even comes down to the little luxuries. Can you cancel any streaming subscriptions or reduce trips to the cinema in favour of using free alternatives like BBC iPlayer? Our guide to finding and cancelling any subscriptions you might have can help you here

Once you’ve taken your essentials into account and worked out where you can cut back from your spending habits and luxury items, you’ll hopefully have a bit more left at the end of each month. But what else can you do to make your money go further?

Improving your financial health

Not only is creating a budget a good idea, but improving your circumstances is crucial too, especially if you don’t make enough money to cover your essential costs. Here are some things you can do to build up your savings:

1. Sell what you don't need

If you’ve got no money until payday, have you thought about generating some extra income by selling your unwanted items?

You can easily make extra  cash by selling any unwanted clothing, shoes, handbags, and toys on sites and apps like eBay and Vinted. Just make sure to take high-quality pictures and write detailed descriptions.

Alternatively, if you’re wondering how to spend less, second-hand shopping is a great way to help you save money.  Buying second-hand is no longer about rummaging through jumble sales and charity shops, and it can help you save more than you think.

2. Look for places to make savings on your bills

You may find that you can save on your bills if you shop around. It can be a hassle, but if you're taking budgeting seriously, saving £30 a month on your gas and electric bills is going to have an enormous impact. Comparison sites like Uswitch can be helpful here.

3. Save on your food shopping

Saving money on your food shopping is a no-brainer when it comes to getting more from your finances. It's not just about looking for deals at the supermarket, planning your meals upfront and only buying what you need can also help reduce costs. Cooking in bulk will also mean you can take meals into work and save on having to spend a small fortune on lunch!

4. Leave your debit card at home

Leaving your debit card at home and using cash instead can be a very useful tactic for people who tend to overspend. Just taking the money you can afford to spend when going to the supermarket, for example, can have a massive impact on your financial health month-to-month.

5. Spread your bills across the month

Some people find it helpful to split each month into four weeks, rather than viewing it as a whole. Consider when your bills are taken from your account and spread them out over the month, instead of having them all coming out at the very beginning.

6. Open more than one bank account

You can allocate money to different accounts for different purposes. A good place to start is to open an account for all your essential costs and have your salary paid into there. This way, your priority bills will get paid and you’ll know exactly how much you have left to spend.

You can then choose to transfer a set amount into a separate ‘spending’ account which you use for anything you buy outside of your essential costs. And from there, if you have any remaining cash, get a savings account and transfer what’s left into it. You’re far more likely to develop a savings habit if you start putting away even a small amount each month.

What can you do if your money runs out?

Despite your best efforts, you may still find that you’re short on funds in the run-up to payday. If all else fails, you could look into one of the following solutions:

Get free, independent support and advice

It’s important to know that there’s a range of third-party organisations who offer free advice and support in times of need. We’ve compiled a list of helpful organisations here who you can turn to, including:

• Citizens Advice: Offers help with everything from debt to budgeting queries.
• StepChange: A leading UK debt charity.
• Debt Advice Foundation: Provides one-on-one debt advice.
• Money Advice Trust:  Free, independent advice on managing money and tackling debt.
• MoneyHelper:  On hand to help with everything from pensions, budgeting, credit and debt.

There’s also the Trussel Trust if you’re in need of food before your next payday. They’re a food bank who can provide short-term help. Use their ‘Find a food bank’ tool online to see how they can support you.

Keeping quiet about your money worries might make them worse over time, so it’s worth reaching out for support when you know you need it. Read our guide on coping with financial stress for more help and guidance on the matter. And beyond these organisations, you might prefer reaching out to a friend or family member.

Talk to family and friends

Though it can seem daunting, if there’s someone close who you feel you can trust to talk about money with, it might help to make a difference. They could’ve been through a similar situation and give advice on what they did to make their money go further, or know of someone else who did and be able to share their advice.

If you feel comfortable asking, or if they offer, you might be able to borrow a small amount of money from them to tide you over. There are pros and cons from lending from family members and friends so make sure it’s someone you trust and isn’t more than you can afford to pay them back. If anything about it doesn’t feel right, then you can always politely decline.

Consider a short-term loan

Short-term loans – sometimes called payday loans – might be able to help you cover unexpected costs but should only be used  in certain circumstances. It’s not advised to use them repeatedly as a  solution to consistent financial problems. However, if you are hit with an unexpected cost that throws your monthly finances off track, a quick loan that’s repayable in flexible instalments could help you avoid missing other payments.

Here at Moneyboat, we offer fair and flexible short-term loans, allowing you to cover an urgent, unexpected expense, then pay the money back in manageable instalments. We’re committed to responsible lending, meaning we carry out thorough credit and affordability checks to ensure applicants can afford to make repayments.

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What are the alternatives to payday loans?

If a payday loan isn't right for you, there are all kinds of alternatives that could help you get through the month. Take a look at the list below and think about what might work in your situation:

• As mentioned, you could borrow from friends or family
• Ask your bank for an overdraft or an extension to your overdraft
• Use an interest-free credit card, budgeting to pay it back before the introductory period ends
• Increase your working hours
• Ask your employer for a payday advance

Remember, if you’re struggling to get through the month on your salary, you’re certainly not alone. The cost of living is rising, and many people share concerns that their wages just don't stretch far enough. However, if you’re willing to organise your finances and adjust luxury spending, you’ll be surprised how helpful small changes can be.

For additional insights, just head over to the Moneyboat blog. There you can explore more simple ways to save money or dive into our financial wellbeing tips and support.

Where can I seek further support?

As mentioned above, if you need extra support with your finances, there are various organisations that offer free, independent advice. These include:

• Citizens Advice: Offers help with everything from debt to budgeting queries.
• StepChange: A leading UK debt charity.
• Debt Advice Foundation: Provides one-on-one debt advice.
• Money Advice Trust:  Free, independent advice on managing money and tackling debt.
• MoneyHelper:  On hand to help with everything from pensions, budgeting, credit and debt.

Free & independent support is widely available in the UK, so don’t hesitate to use it. And if you’ve got no money for food until payday, food banks can provide short-term help. Just type your postcode into the Trussell Trust website to find support near you.

Important: Moneyboat provides a flexible short-term loan. Although these loans are widely recognised and often searched for by our customers as 'payday loans' and ‘quick loans’, our focus is on providing clear and accessible financial options that meet your needs.