Saving is great, but your savings and salary will never be enough unless you curb your expenses. For example, on a debt management website one couple were struggling to pay their bills on a combined salary of £100, 000 ($200,000), but another family managed on £10,000 ($20,000). Why is it that two people struggle on ten times the amount that a family of four can manage just fine? Expenditure!

1. Buy what you can afford

If you remember nothing else in the money section, make sure that you remember this. Sometimes debt isn’t our fault, such as when a bank raises interest rates because they ‘need the money’, but most of the time debt arises when we spend money that we just don’t have. I believe that if you want something bad enough you’ll wait for as long as it takes to get it. Apply this to the expensive things on your shopping list. Do you really want those $200 jeans? If the answer is yes, make sure that you have budgeted for them. they’ll still be there in a few weeks, and cheaper. If not, you’ll have saved up enough money to buy a better pair by that time.

2. Buy what you NEED not WANT

To curb your spending even more, especially if you’re in debt, only buy what you need. Before you purchase an expensive item, ask yourself: Do I NEED this? By ‘NEED’ I mean, is it impossible to live without? Things on the ‘NEED’ list would include: food, water, electricity, gas, travel fare, the monthly bills, and toiletries. Things like clothes and shoes can be included, but always ask yourself if they could be repaired instead, and if not, buy affordable clothes instead of expensive designer ones. Remember that ‘cheap’ looking clothes can be jazzed up with a sewing kit, beads, and sequins. This also guarantees that no one else will be wearing the same outfit as you.

3. Small cash withdrawals

Always take precautions at cash points. Don’t withdraw money late at night, and if you do go with as many people as you can. Take a good look at the cash machine before feeding your card in, and report the machine and go somewhere else if it looks suspicious. Cover your pin number as you enter it, be aware of who is around you, and put your money away before you leave.

Okay, on to the money saving bit. Only withdraw the amount that you need at that time. For example, if you need £7 for your friend’s present, withdraw the minimum amount allowed like £10. If you take out £20, you’ll find yourself spending a lot more in the shops, and then you’ll end up back at the cash point before you know it. I know it’s tempting to withdraw more, but if you need more later you can always come back.

4. Credit cards as the last resort

Getting into debt is bad enough, but credit card debt takes it to a new low. Now it seems like the cards are your friends, but when the card company want payment and it’s then that the interest rears its ugly head. You’ll be paying off the debt, but it’ll barely make a dent in what you owe because of the interest swallowing the money. AVOID using credit cards unless it’s an absolute EMERGENCY! Think of the worst case scenarios e.g. you find yourself stranded in a foreign country and don’t have the cash to get home. After the emergency, pay off the card debt ASAP.

5. Rarely treat yourself

Living on the bare minimum can be slightly depressing when you see others going on holiday, buying a new car or house, and doing other fun, expensive things, so treat your good behaviour on the RARE occasion. By ‘rare occasion’ I mean once a month or every other month, otherwise your spending may get out of control and interfere with your saving/budget. It’s up to you to choose whether to have a big treat on the rare occasion or smaller treats more often.

6. Are you unhappy?

Some people shop because they’re unhappy. They buy enough clothes, shoes, and gadgets to fill a small apartment, but still yearn for more and more and more and….If you’re a ‘big spender’ take a good look at your life. Are your material possessions trying to fill a void? If so, now is the time to improve your personal life because nice outfits, gadgets, houses, and holidays cannot replace family, friends, good health, and anything else that may be missing from your life.

You do not have to earn $100,000+ to live comfortably. It is all about what you owe in debts and how much you spend. Those ‘splash purchases’ are not worth the hassle at the end of the month when you must scrimp together money to pay for essentials i.e. water, gas, electricity, and the mortgage/rent.

If it is not essential, it can wait!

Every little helps. Even if you put aside a couple of pennies every time that you go shopping, if you suddenly need some change one day, the money is there. The best way to save is by pretending that the money is there, otherwise you’ll find yourself dipping into your savings until there’s nothing left. Below will some ways to increase your savings without putting too much thought into it:

1. Direct debit

Set up a direct debit that will send money from your main account to a savings account. It can be any amount as long as you remember to be sensible e.g. can you afford to put aside $50 each month, or would $10 be more realistic?

2. High interest accounts

Search for the best high interest saving accounts that you can find, and don’t jump on to the most tempting offer straight away because you never know what better offers are round the corner. BEFORE you sign up, go online to see what others have said about the account, customer service, etc. Write down the pros and cons of each account, step away from your choices for a week or so, and then make a decision.

3. ISAs

Just like with high interest accounts, you should look around for the best deal. These accounts are unique because there are extra rules and regulations e.g. you cannot withdraw money for a year. You need to check the rules before putting your money into one. The best thing about ISAs is that they’re tax free!

Try all three and ditch any of them if it doesn’t work out. At the end of the day, it’s YOUR money and YOUR way. Do what nurtures your money and suits your lifestyle. Soon you’ll be reaping the rewards! Keep that holiday, wedding day or new house in mind until you’re living the dream, whatever it may be.