Personal Finance Advice for Penny Savers

Most of us probably resolve to be more sensible with money in these times. We’re going to live frugally, save regularly and not go into the red. But, mysteriously, within a few months we seem to have run up a credit card debt and blown our savings on a holiday. The truth is that you don’t need cast-iron discipline or the wisdom of Warren Buffett. Here are some easy steps to get from profligate to prudent this year- while still enjoying life.

1. Junk useless direct debits. Don’t just go on paying for that life cover you don’t need.

2. Use your credit card sparingly. Pull out the plastic when you absolutely have to have that have-price dress in the sales. But always pay it off before it incurs any interest.

3. Find out your books balance. Get out all your bank statements and work out how much you’ve earned- include benefits and interest on savings- and how much you’ve spent over the past year.

4. Bank online and check your balance twice a week. This will give you a clear idea of what’s going in and coming out.

5. Build up a rainy day fund. Set up a monthly direct debit to put money aside in a high-interest account.

6. Organise all your payments. Have your direct debits going out just after your salary is paid in. The rest is yours-to transfer into a savings account paying a better rate of interest than your current account. Transfer back as and when you need extra cash.

7. Buy now, pay at once. If you can’t afford something one month, wait until the next.

8. Always shop around when contracts- like your internet and mobile phone service provider- come up for renewal. Don’t forget to ring your existing provider to see if it can offer you something better.

9. Buy treats with reward points schemes. Use all those points you’ve accumulated on your various cards to give yourself a treat. Spoil yourself- after all, you deserve it.