We always begin with the best of intentions when we say we are going to save more Money. (For me, it usually starts off as a new years resolution that slowly phases itself out the more shopping I do!) Yes, it can be difficult to save money.

Not only do you need to budget for accommodation, food and general living expenses, you also need to remember birthdays, anniversaries, special occasions (and not forgetting Christmas as part of the expense equation). It is challenging to say the least!

How can we stay in control of our personal finances and avoid the most common pitfalls?

Don’t spend money that you don’t have:

Sounds like common sense doesn’t it? You would be surprised how often this is ignored. Many people have ended up getting into debt due to having easy access to credit. If we are to learn only one thing from the recession, it is this - do not exceed your budget and only spend money that is available to you.

It is all very well to put a new pair of shoes or a brand new watch on a credit card (IF you can afford to pay it back at a later date). Debts can easily mount up if you haven’t thought about how and when you will be able to pay them back. If you have more serious financial obligations (such as a mortgage) you must always prioritise these payments without exception!

Create a financial plan and stick to it:

Make way for discipline and willpower…they are your greatest allies when it comes to saving money. When you have a quiet moment, sit down with your partner and make a financial plan. This should include necessary expenditure (such as mortgage payments, food bills, etc).

These are the basic essentials. Once these needs are met and budgeted for accordingly, you can discuss other expenses. You may want a new kitchen or a new car, perhaps you want to redecorate, (the list goes on). Remember: what you want is not the same as what you need. If you cannot afford to have what you want, you must be disciplined enough to say no and instead say yes to what you need!

Try not to socialise too much:

It is very hard to say no to a friend when they have invited you out. We all try our best to please others and this again, makes it very hard to turn a friend down. Nobody likes to be restrained by a financial budget and we often say yes to invitations without thinking about whether or not our finances can support it.

There are ways to enjoy socialising on a budget that will not leave you strapped for cash. If you want to celebrate a birthday, you could always invite a few friends around and cook a meal. Rather than going to the cinema, rent a movie instead! You can still have fun. Life is what you make it!

Make a habit of saving regularly:

It is important to have savings in the bank so you are not caught off guard with any unplanned expenditure. If you make a habit of saving money, you will find that you will not need to rely on credit so much. If there is something you need to pay out for and you don’t want to put any extra strain on your budget, you should be able to rely on your savings.

If you don’t want to drain your current account, a credit card can be very handy for paying certain things (such as booking a flight, paying for a course, etc.) When you are spending money regularly on a credit card for items you don’t really need, that’s when spending becomes a problem. A credit card should always be used sparingly and it should not be a method of convenience for easy cash.