For many people, much of the month is spent worrying about how they are going to make their money stretch until pay day. The thought of working out how much you make, how much you spend and where you can find savings can seem frightening. Taking some time to get your finances organised, however, can make your money go much further. Sites such as moneysupermarket.com are also a good way of comparing financial products to ensure you are getting a good deal.

Where Does It All Go?

One of the first things to do is to work out how much money you are spending each month and what you are spending it on. Use your bank statements and write down all expenditure including your mortgage or rent, household bills, food shopping, entertainment and luxury items.

If you are spending more than you earn, then you need to take urgent action. Even if you aren’t, it is likely that you will be able to make some relatively painless cuts that will make your money go even further.

Why Am I Paying for This?

Looking at the details of your expenditure can result in a realisation that you are spending on things that you no longer need. Whether it’s a gym membership that you haven’t used for months or breakdown cover when you no longer have a car, you may find there are some easy wins.

You could also find that the cost of items that you are paying for regularly has increased substantially. Motor insurance, home insurance or energy bills can all gradually rise in price over time. It makes sense to use a comparison websites to make sure that you are still getting a good deal.

Spending Less

One of the easiest ways of cutting back on your spending is to use cash for everyday purchases rather than your debit card. By setting yourself a budget per day or week, you will then be able to quickly see where you are and whether you need to rein in your spending.

Even when making small adjustments to your daily spending, you will find that the difference soon adds up. By taking a thermos of tea with you and picking up a free paper for your daily commute, or making your own lunch rather than buying it on some days of the week, the savings will mount up.

Reorganising Debts

Looking at how you are repaying any debts that you have is another way of making your money go further. If you have a mortgage and this has reverted to the lender’s standard variable rate, then you may find that remortgaging will result in lower payments.

If you have outstanding debts on your credit cards and are paying interest on them, then you may find it beneficial to switch card providers because many offer an initial interest free period for balance transfers. Consolidating your debts into a single loan is another way that can potentially result in savings.

By taking the time to sit down and go through your finances in detail, you should find it easy to make some relatively straightforward savings. It will also highlight potential problems that might lead to financial difficulties, allowing you to take early action.