A different pace of life

Sarahwithlove

Personally I prefer to empty mine to £0 at end of month with any remaining going into one of my pots. I am trying to build a one month ahead pot which is the cost of essential expenses rather than a month's wages. Though may increase it nearer the time. 

If i was you I would aim to get one month ahead so that you can manage your different paydays better. But with you having debt I would get an emergency fund of £1k then spend rest on debt. Once your debt is gone you can then focus on more longer term saving. Though when budgeting for the month you need to budget for a Sinking fund for any annual expenses. So effectively have 3 pots. 

1. A month ahead pot. That way when you get paid throughout the month you can top it back up so come beginning of month you have a full month's wage in it. 

2. Emergency Fund - £1k generally covers most emergencies. 

3. Sinking fund - divide any annual expenses by 12 and transfer into this account each month to cover these expenses when they occur.