- How much money is coming into your household.
- How much money is going out.
- How much you can afford to offer to those you owe money to.
- How you can best plan your spending in the future.
Track Keep track of your spending. Keep your receipts or take note of what you spend your money on. It will help you understand where your money is going and it might just be an eye-opener. Budget Estimate your income and expenditure for a set period and budget accordingly. But be realistic and don’t underestimate! Save Get into the habit of saving. Try to save at least 5% of your regular income for emergencies. Be Prudent Shop around and get the best deals and look at cost comparison websites. Borrowing There are times in our lives when we run short of funds. If you have to take out a loan, be sure you only borrow what you can comfortably afford to repay. You should match the repayment term to the purpose of the loan i.e. don’t make the mistake of paying off Christmas over a number of years. Best advice is to be careful with credit cards and not to use Moneylenders.