It was not so very long ago that wages were distributed in cash-stuffed brown envelopes at the end of the week, although that style of money management is now ancient history. Financial transactions have been revolutionised by the introduction of plastic, which overtook cash as the payment method of choice in 2004. The surge in online shopping has only increased this trend and flashing the plastic is not such a very flash affair anymore – most people will have a couple of cards, either debit, credit or both, which they use for even the cheapest of purchases.

One huge advantage of this financial revolution has been convenience. All it takes to buy a book from America is a reliable internet connection and five minutes of your time spent typing in a few digits. There is no longer the need to have paper stuffed wallets and coin-clinking pockets; no longer that slight feeling of loss every time you part with a used banknote. With plastic money transactions are easier and, superficially, more painless. However, there is a concomitant downside – namely that it is more difficult to decide how much money you should be spending.

This may sound strange, but knowing your financial limits is a complicated affair. Generations past may have worked on the basis that you saved for something and then paid for it – excluding perhaps impoverished aristocrats and charming fraudsters who lived on credit until their personal credibility was exhausted. For most people, however, particularly in the thrifty post-war years, if their opened wallet showed only a couple of moths then a weekend away in Blackpool was simply not a viable option. By contrast, in July 2004, total UK personal debt passed the £1 trillion mark. Debt is no longer an option for the few; indeed, it is increasingly necessary for the many. Most graduates will owe more than £10,000 by the time they are twenty-five, because higher education comes with a price tag. That is before they even think of buying a property.

But can savings and debt co-exist? The answer is often yes, particularly if the debt is long-term and manageable. Although twentysomethings may feel the weight of student debt and mortgages, it can be a reassuring affair to have an e-savings account, an easy-to-manage account into which a dribble of money can be directed.

It is frustrating trying to pull enough together for investment products, but most people can spare something – even £20 – a month, which can mount up in a savings account; enough, at least, to give a sense of independence and autonomy. If the car breaks down there is money to cover repairs; if you hate your job then there is enough to cover a month or so of unemployment whilst you look for a new job and re-assess your career direction.

Saving is all about deferring consumption from the present to the future. Do you really need that second Monday night pint or eighth set of shoes?