Shades of depression? We've had it so good for the last few years that we've forgotten how to cope when times are tough. Here are a few tips to get you started on trimming your budget.

• Decide what's important to spend your money on. Separate wants from needs and avoid impulse buying.
• Do grocery shopping once a week with a list, preferably when you are not feeling hungry!
• Improve your health as well as your budget by giving up or cutting down on smoking, drinking, snacking between meals, frozen foods and fast foods.
• Take your own lunch to work.
• Grow your own green vegetables in between your flowers or in a container.
• Don't renew subscriptions for non-essentials such as satellite TV, magazines or memberships. You can always sign up again next year.
• Save petrol by doing as many errands as possible in one trip to town.
• Cut back on gifts. Your friends and relatives will appreciate you making the first move to spend less.
• Stop using your credit card and transfer the balance to a low interest card.
• Set aside a small amount of money each week to cover unexpected bills. One way of doing this is to put your coins into a jar at the end of each day.
• Use several bank accounts to manage your money rather than having all your money go in and out of one account. Have one account for automatic payments and direct debits, one for household expenses such as food and power, and one for personal expenses such as clothes and entertainment.
• If you're not good at budgeting, get some free assistance from a budget adviser. For a list of budget advisers, see www.familybudgeting.org.nz

Reading through this list, you might think that budgeting is all about depriving yourself of things you enjoy. A budget should always have rewards in it as well. Yes, you may to give up some things, but allow yourself to use part of your savings for something special, whether it be a celebratory dinner, a show, or a weekend away somewhere. It's all about prioritisation, not deprivation.

Article by Liz Koh

Liz Koh is a financial adviser. Her disclosure statement can be obtained free of charge by calling 0800 273 847. 

Ph: 0800 273 847

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www.moneymax.co.nz

Author of the book Your Money Personality; Unlock the Secret to a Rich and Happy Life, Awa Press, March 2008

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