Many people all across the globe are finding it hard to pay their way and keep their heads above water, as a result of the global credit crunch. Not to mention the current problems in the oil producing countries that is pushing the price of fuel through the roof. So what can be done to ease the problems that so many of us are facing? The most important aspect of any successful money management is to work to a tight budget.

In order to do this it is important that you make a list of everything that you are currently spending money on, no matter how small or insignificant that you might think it is. This should include absolutely everything from your weekly food bill, to petrol for your car and even what you are spending on any premium TV channels, such a sky or virgin etc. Do not leave anything off the list or you will not be putting yourself in the best position to deal with your current situation. You should even go as far as working out a monthly spend on clothing, birthday presents or anything at all that you currently spend money on.

When you have compiled your comprehensive list you then need to go through it very carefully to see what if anything can be culled or reduced in any way. If you are spending money regularly on any kind of insurance product do a search on the internet and see if you can reduce the premium. Can you cycle or walk to work and reduce what you are spending on fuel and maintenance for your car. Do you really need to spend so much on food can you save any money by shopping at a different store or by buying store brands instead of the household names?

You must be totally ruthless when you are going through this process and get rid of everything that is not totally essential. This alone can make a huge difference to anyone who is sensible in their approach to it. You also need to look at where your income is coming from and see if you can do any overtime, or maybe take on a part-time job somewhere to add a little bit extra to the pot.

Once you have written down all your incomings and outgoings and got rid of anything that you can do without, you should make a point of allocating the correct amount of money each time you get paid to make sure you have enough to cover your living costs. You should do this religiously every time you get paid and work closely to your new budget, making sure that you do not stray from it.

If you find that you do not have enough income to cover your costs even after sacrificing what you can get away with. You should consider looking at consolidating your existing expensive credit card debt into a cheap rate secured loan. This is a great way of putting more cash in your pocket every month by significantly reducing your monthly living costs. Always make sure that you cut up your credit cards when you have gone through this process otherwise you may find yourself in the same situation again before long.

Author Bio: Tom Dawson is a UK finance expert who helps thousands of people arrange debt consolidation loans of all types online including secured loans. Visit his site today.

Category: Finances
Keywords: financial planning, budgeting, debt consolidation, secured loans, finances, loan