People Should Live Within Their Means

It seems we are cutting back sensibly due to the credit crunch. Many of us are living without those little luxuries and excesses which we used to have. During the financial crisis people need to tighten their belts and keep hold of their expenses.

This has been confirmed by a spokesperson for the Consumer Credit Counselling Service.

The spokesperson also states that although some people may apply for loans to provide finance when in need, this is a risky plan as it is often unreliable and not a good idea for escaping bad credit situations. But despite the economic slowdown, it is "noticeable" that people are generally "being thrifty", he adds.
It is always advisable to live within your means whenever possible, recognising overspending and cutting back on anything that is not essential for day to day living.

It is likely that the current credit crunch will be with us for a long time and so it is important to look ahead and budget accordingly.

This could mean cutting back on things like:

•    Foreign holidays – there any many beautiful locations in the UK, especially for families, which can be visited on a budget.
•    Eating out – although many restaurants and pubs are now doing deals such as two for one the cost of a family dinner can be prohibitive. Usually you could have two or three meals at home for the price of one dinner out.
•    Nights out – many parents find going out a relaxing break from looking after the children. However, with increasing prices for alcohol and babysitters even this can become too expensive for some households. Instead why not have a special movie night after the kids have gone to bed.
•    Supermarket spending – many of us go shopping in the supermarket without even looking at the prices. However, many bargains can be had whilst still buying the household essentials. For example many supermarkets have a ‘basic’ range which is vastly cheaper and is still essentially the same product. Also there are many deals such as three for the price of two which can help with the monthly food bill.

If you want to know more about budgeting why not ask AnswerBank Business and Finance.