Good budgeting habits

To budget effectively remember to review your budget regularly, especially if there are any changes to your circumstances to make sure that you're living within your means. Try a few of these helpful pointers.

1. Try to save part of any pay rises or bonuses.

2. Be realistic. Know your weak spots and allow for a little unplanned spending now and again. Why not set up a standing order direct to your savings account?

3. Set up a simple instant access savings account. Transfer spare money you have at the end of the month and try to set up a regular standing order.

4. Avoid impulse buying! Plan your expenditure in advance and try not to over-purchase.

5. See if spreading your larger payments over the year rather than paying a lump sum by Direct Debit might suit you better.

Making and sticking to a budget is just one of the many good habits we'd recommend. Using our simple excel budget calculator can help you do this. If you do not have Excel use our online budget calculator.

Next, we show you how you can organize your monthly finances according to when you get paid, so you have a better idea of where you are from day-to-day.