We all know we would love to have more money. However, it is true the more you have the more you spend, your tastes change. Instead of a $30 shirt you buy a more expensive one because the $30 looks cheap.

So how do you cope financially when you are on a limited income? Here are some tips;

1. Prepare a budget, include everything you spend money on, birthdays, vet bills. Work the budget to your pay frequency, so if you get paid weekly work out how much of your wage needs to be set aside for expenses, even if those expenses are paid fortnightly, monthly or quarterly.

2. Stick to your budget, it’s not always easy and you will slip up now and then, but do your best to stick with it, it’s worth it .

3. Set up a separate account specifically for your expenses. Pay enough in each pay day to cover your expenses and have automatic payments and direct debits set up to be paid automatically from this account. This means you will always have funds ready to pay your bills and you won’t incur any late fees. You may even get discounts because of paying on time.

4. Review your budget regularly to make sure you have all the expenses covered and amend if necessary

5. Look for the best deals for grocery items. Shop at the cheaper stores and the bulk supply outlets. You can make some great savings.

6. Minimise electricity usege. Turn off appliances when not in use, use a carport to dry your clothes in bad weather instead of the dryer.

7. Consolidate debt where possible. Repay debt with the highest interest rate first, work hard to pay this as quickly as possible, when you have paid this off, tackle the debt with next highest rate of interest.

8. Avoid hire purchase arrangements that have interest. Opt for no interest terms and ensure you can repay the debt before the interest free term expires, if you can’t you will be better off saving the money and purchasing when you have the funds.

Remember, we need money to live but money isn’t everything. It is amazing what you can achieve with a little focus and self-control. Good luck.

©Sheryl Fonoti is a WAHM, life coach, motivational speaker and author. Visit her website http://www.dreamstoreality.co.nz and sign up for her free e-zine