Start by going back to cash. Ditch the credit and debit cards as much as you can and draw out enough cash to get you through the day. How does this help? Well, if you don't have your cards then you can't make impulsive buys. It also means that you have to plan your day financially and, therefore, think positively about what you are going to spend. Real cash means spending real money – something easily forgotten when handing over a piece of plastic.
As a complement to using cash, draw up a list when you go shopping for food or other regular items. And stick to it! Wandering around the supermarket can be fun but a disciplined approach to shopping can really save the pounds both in the purse or wallet and on the waistline.
Run a monthly budget and make sure that you balance your bank statement with your cheque book to keep on top of what is being spent.
Plan meals. Make sure that everyone in the family knows what time the main meals are and what is to be served. Not only does this save money on impulse take-away meals but has the added advantage of bringing the family together at least once a day for a social meal.
Take lunch to work rather than buying it when you are there. This can save a small fortune and you get to eat healthily from your weekly budget rather than being drawn to high priced street shops or cafeteria.
Compare the cost of your utilities and insurance every year. Too many people just accept the annual renewal cost of these items and get charged a premium for the pleasure. Insurance and utility companies rarely reward loyalty so shop around by using one or more of the online comparison websites to get the best deal possible.
Put some money aside every month no matter how hard. Build up a contingency fund to cover large or unexpected cost items such as a car service, new tyres or household breakage. If you can, aim to save at least 6 months normal family expenditure as a backup fund to cover emergencies or potential job loss. That way you can avoid borrowing money at high rates to cover short term living costs.
Pay off credit or store cards in full every month. Even if you have to consider a loan to do so, it can prove cheaper to have an unsecured loan rather than roll over store or credit card debt at very high rates of interest. Cards are great for convenient shopping and getting up to 56 days time to pay, but try to avoid hard core debt since the fees and interest rates are very high compared to fixed term loans.
Finally, make a will. Don't let your hard earned family wealth go to the Tax man.
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