A Guide to Controlling Your Spending

Many people throughout the UK find it difficult to control their spending and manage their money. Trying to balance day to day outgoings with monthly bills, transport and groceries, makes it easy to lose sight and control of where your money is really going.

Take a look at the tips below to get a better grip on your spending.

Create a budget

A good starting point is to look at what needs to be paid each month or fortnight (this will depend on the frequency of your bills and wage payments) and draw up a realistic budget. This should give you a clearer view of your financial position before and after the essentials are paid for and allow you to set some limits on any additional spending.

Start with your largest outgoing payments; this could be your mortgage, rent or even groceries and add in any regular bills. Depending on your circumstances or lifestyle this could include:

• Gas
• Electricity
• Water
• Mobile phone contract
• Satellite television
• TV license

On top of this, you may want to estimate how much you spend each month on other miscellaneous payments such as fuel for your car or on public transport. Avoid getting caught in an emergency by allocating extra funds for household repairs or healthcare.

Once you have a clear view of your outgoings, separate these from your income. Treat what’s left as your ‘disposable income’ or spending money.

Find a better way to pay

Once you’ve set your budget, stay within it. if you need some additional help to stay within your limits, a great step is to look into prepaid credit cards. It’s up to you to load the card and you’re largely limited to the money that’s on it, so by paying in a set amount to cover outgoings, you’ll always have the essentials covered. Just be sure to leave extra money for any monthly fees tied to the card.

An additional budgeting tool you may find useful to ensure you’re spending within your limits and not overlooking any essential payments is the free Direct Debit service sometimes offered with some prepaid cards. By arranging to have regular bills automatically debited from your account straight after pay day you should avoid overspending and missing any payments. In addition this should avoid unnecessary spending on missed payment fees.

And, as these accounts usually come with online statements, they make it easy to see where the money goes – and where savings could be made. From takeaways to satellite TV packages and clothing, there’s nearly always an area that can be cut back on.

Look for a better deal

No matter how tightly you rein in spending, there’s bound to be a time when something needs replacing because it’s just not economical to have it repaired. When this time comes, shop around first and make sure you’re getting the best price. Price comparison websites are generally a good way of finding if something is discounted online, so rather than buying the first thing you see, take note of shelf price and see if you can find a better deal elsewhere.

Another perk of online shopping is the Cashback programs that are available with credit card or prepaid card accounts, or separately from websites such as Quidco. These are usually easily registered for and offer valuable discounts, special offers or money-back on anything from groceries to electrical goods.

Building a cash cushion

Cutting out impulse purchases and sticking to a realistic budget isn’t easy, but it’s a good starting point to start controlling your spending and managing money. In fact, after setting a budget and sticking to it for a few months, it’s worth reviewing things again to see if further cuts can be made. With luck, money can be put aside for something that’s really needed.