Take control of your finances in 2009

The recent credit crunch shock and the fall of the economy has highlighted the importance of taking control of your money and making sure you have some savings for the future.

It’s easy to say that watching the pennies will mean you have more pounds, but it’s not nearly so easy to do. Credit cards and easy loans are tempting, and many people don’t even really know how much money they owe.

Here are a few tips to help you take control of your finances and avoid the knock of creditors on your door this year.

Budget

Take a long hard look at what you earn and how much you spend: some expenses can't be helped, but others can be. Having a budget means that sometimes you just need to wait a little before you can buy what you want, not that you can’t have it at all.

Save

Save as much as you can. Open a good interest bearing account and put away as much as you can every month, even if it’s just a few pounds. Cut down on your expenses, and look for cheaper options on the things you can’t avoid. Home insurance, car insurance and utility bills need not cost you as much as they do, so look around for cheaper options.

Protect

Assessing your risks and keep your money safe. Lock up the house, look after your car and assess your chances of suffering from identity theft. For comprehensive protection, consider signing up for an identity theft protection service.

Grow

Increase the value of your investments and aim to build a diversified investment portfolio. Review your investments carefully and evaluate the long-term viability of each. Speak to your bank manager about the best options.