Reduce my Monthly Spending

Many people find that despite what they earn, they always have nothing left over at the end of the month. Sound familiar? Our monthly spend seems to grow to match whatever we are currently earning and sometimes even outspending our income and piling on additional debts.

Take a look at what you earn. The average person in the United Kingdom earns £23,244 before tax. Take your salary and divide it by twelve to see your monthly gross. Take a look at your payslip and see how much you actually end up with. This gives you a realistic net picture of how much you actually have each month. Make a list of all of your outgoings and don't be conservative, if you know that you spend £100 per month on cigarettes and alcohol, add it to your budget. Be realistic.

Now look at the areas where you could save money. Open a savings account linked to your current account, you can put any excess money into it. Firstly, can you save money by switching your mortgage? Contact an advisor and see if you could be paying less. Or if you rent, do you need a three-bedroom house or flat when you could do with two?

Utility companies are all fighting competitively for your custom; why not see if any of them can save you money by getting all your utilities from the same company? Next take a look at your bank statement. Do you find yourself spending £10 here or £20 there, all taken out of the cash machine? Open up a pin card account and give yourself a budget each month. Only spend the contents of that account.

When shopping, where possible buy the supermarket's own brands on the basics. If you prefer a special cheese or wine, fair enough, but your toilet cleaner and baking foil doesn't matter, so choose the cheapest possible. Never shop when you are hungry, you will always buy more. Cut down on takeaways, one per fortnight if you still have money left over in your pin card account is enough and if you like to eat out, once per month is more than enough, but only if you have money left over.

If you are looking for more help, you could start by seeking advice from a professional advisor. Complete the form on the right to begin.