Developing a budget might require some thinking but if you manage do it right, you will reap the benefits in the future. The best way to reduce your expenses is by starting to reduce your discretionary expenses, since non-discretionary expenses can be harder to adjust.

Look out for any annual one-off expenses such as your home, health, life and motor insurance – you may wish to spread their premium between different months in order not to be burdened with a lot of expenses with one pay cheque. You can also plan and save an amount each month towards these expenses in order to avoid any bulk payments, if changing premium dates is not possible.

In order to curtail your spending with regards to utilities such as water, electricity, internet and television, try to check if there are any offers or government subsidies from which you may benefit. For example it might be worth to save some capital to install alternative energy or change appliances if these lead up to monthly savings. You may also consider your telecommunications package to check if there is anything which you no longer need.