I’m pretty lucky as I’ve always found it quite easy to keep my finances under control, partly probably because of my mum’s good teachings, and partly because I’ve been lucky enough to understand money without really understanding why I understand it. I’ve watched quite a few people I know really struggle with money at different times however, and I’ve helped some of them to try and get straight with their debts, and been really proud of each and every one of them that have managed it, because I know how hard it can be. Obviously different situations will require different strategies but here are Ten things I think can really help!

1) One of the first things I have always suggested people do when trying to figure out what they’re spending money on is to challenge yourself to write down every penny you spend for a month, in a note book. Everyone I know who’s challenged themselves to do this and kept at it for the full length of time, has actually found that after a few days they actually start to spend less money because they don’t want to have to write it in the book.

2) Check your regular bills – We all have to pay council tax and don’t really get an option of who we pay or how much it will cost, but most of the regular bills we have, we get some choice about things like Electric, Gas, Phone, Internet, Insurance etc. Use an online company like USwitch to check out that you’re getting the best deal you can locally. You don’t have to do them all at once, but you could set yourself the task of checking one item a month. By the end of the year you’re back to the beginning and ready to start checking them again in case they’ve changed, but it spreads the load, and it really can make quite a substantial difference to how much you pay out each month.

3) Question everything – Before you spend money on something, try to wait at least 24 hours and question do you really need it? Could you get by without it? Is there a cheaper option?

4) Budget for things – When you write a budget include EVERYTHING. Not just your bills, weekly shopping and the petrol for the car, but include all your other things you buy too – kids lunch money, cigarettes, money for going to the pub quiz once a week or whatever it is that you spend money on. Look at when money comes in and goes out too – if your money comes in 4 weekly, but your bills go out monthly, then you will have to keep a closer eye on what you have in your account each time than you might if both incoming and outgoing are monthly.

5) Separate things into easy to manage chunks – If you find it hard to remember to leave the right amount in your account for each bill or find it hard to remember what goes out when, why not set up a separate account for everything that’s on direct debit. You can add up the cost of all the fixed amount direct debits, and set one bank transfer to go from your account that you get paid into, into your ‘bills account’ Then you can forget about all the direct debits and effectively take them out of the equation each month. I’d suggest you make sure that you pay in at least £10 per month more than goes out to give yourself a little bit extra in there in case something goes up by a few pence. And don’t forget that when a bill does go up, you will need to adjust how much you transfer!

6) Open a savings account – Even if you can only afford to put £10 a month into it, if you set it up as a bank transfer that goes out every month just after you get paid it’s much more likely that you will have something to fall back on if you need it and be less likely to go into overdraft or take out a loan both of which will cost you extra.

7) Pay off the highest interest first – If you already have debts that you need to clear, get paper and pen and write down everything you have, and look at what the interest rate you’re paying on each one is. If you have one at 8% and one at 22% then the one you need to get paid off soonest is the 22% one as it’s costing you the most!
What can you do without? – If you need to skinny down your outgoings, think about what you can do without. Are you paying for mobile phone insurance – do you really need it? Do you have a gym membership that isn’t being used, or even if you do go to the gym, could you go jogging instead and make a saving there. Cable TV costs a lot each month, could you get yourself a freeview box instead which will be a one off payment of around £15-£30 instead of paying out every month for cable.

9) Pay Cash or Do without – Don’t take on any extra credit, put that old credit card in the drawer and leave it there! If you take out £50 at the beginning of the week make sure it lasts till the end of the week. Your budget will help you know how much you can spend and your note book will help you keep an eye on what you’re spending it on. If you can reach the end of the week with some left then it’s more money for paying off the debt or putting into the savings account and you’re well on your way to that skinny debt and fat wallet.

10) Ask for discounts! – If you have to buy anything in bulk, or if you need to make a large purchase then ask if you can get a discount. Don’t think that this only applies to smaller local shops either, even big shops with lots of branches can give you discounts on things. I have in the past received discounts on carpet, car, furniture, insurance, appliances, and even on things like cans of slimfast bought from chains such as boots. (Yes boots the chemist!). Maybe you could try it with nappies. Go into your local boots or chemist and ask them about it. You could try an approach like ‘If I wanted to buy a dozen large bags or x nappies would you be able to offer me a discount?’ The worst they can do is to say no, in which case you’ve lost nothing, and you might well be pleasantly surprised.