Make a Budget: Start out by creating a simple household budget. Add up all the incomings such as your wages and regular interest, share income or government benefits. Once you've found out how much money you have coming in you need to know what money is going out and where it is going. Make a list of how much you spend on items such as rent / mortgage, going out to restaurants or concerts, food, clothing, electronics etc. Fingers crossed you will end up with incomings being more than your outgoings but often it's the other way round. Having a look through where your money is being spent is the first step to spotting areas where you can save money each month.



Shop Around: You can save a lot of money by shopping around. If your buying items that are available online then instead of always shopping from the same stores, use price comparison websites such as shopping.com to compare prices from a wide range of stores.

Buy in Bulk: When it comes to your grocery shopping then you can save money on non-perishable items such as canned foods, toilet roll and laundry detergents by purchasing them in bulk.

Savings Accounts: As part of the household budget you create make sure you allow some money each month to add to a savings account. High interest savings account rates are currently very competitive as banks try and boost their deposits during the credit crunch. Because you earn interest on your money before you use it to make a purchase then your lowering the real cost of future purchases.

Use Debit not Credit: It's good to minimise the interest payments on your credit card bill each month. An easy way to stay in control is to use a debit card such as a Visa Debit card for most of your purchases. This takes the money directly from your bank account forcing you to spend within your limits.

Cut Price Movies: If you love going to the movies then why not consider making some changes. Some movies offer discounts during off-peak periods or on certain nights of the week. Cinemas also make much of their profits from the candy bar. Why not bring along your own refreshments.

Eating Out: Consider cutting back on how often you dine out or purchase takeaway food. It is almost always far cheaper to eat at home. For those meals you do eat out then check the papers for discount coupons. Eating at home is normally better for your health as well as your wallet.

Take Your Own Lunch: Cutting out that morning coffee at Starbucks or bringing your own food for lunch can save a small fortune. It's easy to spend over $10 on coffee and food at work. Just cutting out the morning Starbucks or bringing your own lunch could easily save you over $2,500 per year.

Pay TV: How much do you really watch your pay TV. Why not consider scrapping it and getting a digital set top box so you can enjoy free to air TV channels in the best quality without any monthly fees. If that is too much then why not cut back to a package with just the channels you value and enjoy the most.

There are of course many other ways of saving money but these are just some ideas to get you started. Why not make it a challenge at home to all come up with ten ways you can each cut back on your spending. Use a spending diary for a couple of weeks to see where your money is going and where you can make further cuts. When you use several of these tips together the amount of money saved can really add up and help you manage your costs.