Cash advice

1 KNOW WHAT YOU SPEND

Check bank statements and receipts to see exactly how much you are spending each month. Add up all your fixed expenses ( like household bills, rent or mortgage payments, credit card payments) and how much you are spending on other essentials such as food, petrol, toiletries, pet food, etc. Make time to sit down and do this – nothing on your bank statement should come as a nasty surprise!

2 KNOW YOUR INCOME

This isn’t just salary, it could be money from interest on savings, cash gifts, child benefit, rental income, selling things online, etc. Subtract your monthly expenses from your income to see whether you have a shortfall or surplus. This will determine your next steps – reining in or making use of that extra money.

3 KNOW HOW TO BUDGET

If you’re not a spreadsheet kind of person, try apps such as Moneydashboard, Yolt and Emma. Digital-only banks such as Starling and Monzo are on the money when it comes to tracking spending. You can also check your spending and make a monthly or annual budget at moneyadviceservice.org.uk. We also like the 50:30:20 rule – allow up to 50 per cent of your income for things you need, leave 30 per cent for things you want and commit 20 per cent to savings and repaying any debts.

4 FOCUS ON PAYING OFF DEBTS

Nobody needs to be paying interest on credit cards. If you are, set up a 0 per cent balance transfer card to tackle the debt. Put your debts in priority order and decide how you are going to tackle them. For free help on this, contact stepchange.org. If you think it’s achievable on your current spending and saving regime, think about overpaying your mortgage to clear the balance more quickly.

5

ANALYSE OUTGOINGS AND COMPARE PRICES

Checking that you’re getting the best price possible should be a matter of course, whatever you’re buying – from new trainers to switching insurers. Price comparison sites are one of the best ways to do this for a variety of things. Remember it’s your money, don’t waste it – so always find the best deal you can!