Spending decisions affect how we live, but reducing spending doesn't have to reduce the fun in your life! Prepare a list of everything you spend money on and ask yourself: Does the spend reflect the importance of the activity? Could you achieve the same effect in a different way? Here are some examples:

Walk or cycle instead of driving
Park further away for free
Join a sharing/borrowing scheme
Rent/hire instead of buying
Buy second-hand instead of new
Plan the food you will cook with and eat at home instead of out
Shop less frequently
Try supermarket-own brands and always buy loose fruit and veg
Shop around, particularly for bulk purchases which might be cheaper elsewhere
Shop on a different day/time
Join or start a skills-sharing club
Learn a new skill or get resources to do or make it yourself
Save money by reducing unessential or unused expenses (i.e. energy saving, subscriptions, memberships etc)
Research cheaper credit or higher interest rates, better insurance deals, dual fuel offers
Use ISAs, take advantage of interest free credit card offers, re-mortgage
Find out if you can pay off your loans more quickly

Financial planning

Creating a more secure future requires money management skills, discipline and facing up to your debts. It makes sense to ensure any loans or credit card debts are secured, and carry the lowest interest rate that you can find.

Avoid the punitive costs of unsecured loans or being at the mercy of a lender. Reducing debt, saving and investing wisely, staying in control of your money, finding additional income sources and keeping up to date professionally will increase financial stability.

Face up to financial difficulties and it will help you to learn how to manage money well, find out why and how you make financial decisions, regularly review your financial state of affairs and earn a sense of being in control.

Changing habits

Your aim needs to be to change your spending habits. Firstly, look at how and when you spend money. Make it a habit to collect receipts and record spending. You can use a pen and paper, PC spreadsheet programme or money management software. Consider which one would suit you best.

Money management software has the advantage of being easier to use, offer more security of your data and produce financial reports helping you to understand your financial situation. Most software manufacturers let you try their products, and they will offer technical support and future updates.

Whichever recording device you choose, make sure you include everything, and complete it on a regular basis. Once you know where your money is going, you'll be able to improve your financial decision-making, and feel much more in control. The other important point to remember is that if you can sort your finances out in difficult times, you'll really be winning when the economy gets back on track again!

By Gunda Wise of Thuthuka Ltd, developers of the RicherMe® personal money management software tool. www.richerme.com

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Face up to your finances

Making changes

Financial planning

Changing habits