Olivia’s Famous Payday Routine

Okay so I don’t know if it’s quite famous, but I believe that I started a little trend on Tik Tok called a “payday routine” and it’s a pretty good way to manage money if I do say so myself and the best part is it includes Managing Money Without Budgets or Spreadsheets.

Here at Her Money’s Worth, we don’t like managing our money with strict budgets or spreadsheets because we understand that in real life it’s just not at all practical to write down and track every single $ we spend. Plus, I think we’ve all got better things to do.

The secret is, that managing your finances doesn’t need to involve strict budgets, spreadsheets, or hours of calculations. Every goal I’ve ever achieved hasn’t required this from investing regularly, to every holiday and all the way to buying a home in Melbourne - i’ve never tracked every penny. I’ll show you exactly what I did here.

Olivia’s payday routine is a simple yet effective way to divide your money into key categories without over-complicating things. Her strategy ensures you cover essential bills, enjoy guilt-free spending, and still plan for the future—all without obsessing over the numbers.

Here’s how she does it, and you can too, by dividing your money into four easy-to-manage categories.

1. Bills and Non-Negotiable Fixed Expenses

The first portion of your paycheck should go toward your fixed expenses—the bills that come like clockwork each month. These are the must-pay costs that keep life running. In this section you can include: 

• Mortgage or rent

• Electricity and water bills

• Internet and phone plans

• Health insurance, car insurance, and other necessary coverages

Once these payments are set aside, you know you’ve handled your biggest financial obligations and you can move onto category 2. 

2. Lifestyle Expenses and Variable Costs

Next, let’s take care of your lifestyle and variable expenses. These are the costs that fluctuate from week to week or month to month, depending on your needs or how much you use. While they aren’t fixed, they’re still necessary to keep life moving:

• Groceries

• Fuel for your car

• Childcare and school-related items

• Clothing, household supplies, or occasional repairs

Even though these costs can vary, they’re still important. Estimate how much you’ll need based on your recent spending and set aside this amount from your paycheck and into this category.

3. Treat Money and Guilt-Free Splurging

Here’s Olivia’s biggest secret to actually achieving goals long term and over and over again throughout your life: NEVER skip the splurge money! Setting aside a portion of your paycheck for fun and indulgence is absolutely necessary. Without this, you’re likely to burn out and feel frustrated with your finances.

This is the "treat yourself" fund, where you can spend without guilt:

• Dinner out with friends

• Movies or entertainment

• Fun activities for the kids

• Personal treats like a massage, new clothes, or that hobby you love

By allocating a specific amount to this category, you give yourself permission to enjoy life while avoiding overspending. This fund creates balance and helps keep you on track with everything else.

HINT: You can save up for fun goals in this bucket/account too, you don’t have to spend it all in one week. If you want to buy an expensive bag or go away for the weekend, let this account build up and continue to enjoy!

4. The Future You Bucket

Finally,  the most important category: the Future You Bucket. This is where you put money aside to take care of your future self. This category is essential because it’s about making life better for the long term:

• Investing in shares or an ETF portfolio

• Making extra mortgage payments 

• Saving for an emergency fund

• Saving for a house deposit

• Paying off bad debt 

The key here is that you never ignore this bucket, no matter how small the amount. By investing in your future, you’re thinking about the you of tomorrow and improving your life in the future. The impact of the money in this category compounds over time, giving you more options and flexibility as your financial life progresses.

HINT: Feel free to “split” this category into multiple buckets or accounts to work towards multiple “future you” goals at once.