Spend wisely

Make a shopping list and stick to it. Studies show that they really cut down on expensive impulse buys. It can also help to have a snack before you shop. Those pricy biscuits won't look so tempting.

Pay with cash only so that you will know how fast you are spending your money. Keep all receipts and transaction records until you are sure you won't be needing a refund or until the monthly statements are correct.

Write down everything you spend. You will soon notice how your spending snowballs. It also helps you pinpoint where you can cut back for example you may be surprised to find that your dry cleaning bill is much higher than you thought!

Set aside a sum of money right after pay day. Have it direct debited the bank automatically transfer the cash for you very month. Or start stashing away your won cash at 5 per cent and then at 10 per cent of your salary on every pay day. Either way, you won't notice how much money you are stashing away until you check your account at the end of the year!

If you get a pay rise, consider investing it for future projects like your kids' education. After all, you have lived this long without it, perhaps you can live a few more years on your old salary?