As the cost of living crisis continues to squeeze household finances, staying on top of your finances has never been more important.
It doesn't need to be too strenuous or time-consuming either.
One money expert has explained how you can turn your fortunes around in just five steps.
Shaq Magee, co-founder of Millennial Money, said it's all about taking back control of your money.
It comes as charity Turn2Us estimates 14.5 million people are living in poverty in the UK - with more set to be pushed into financial hardship.
Shaq commented: “The situation for many living in the UK, the sixth richest country in the world, is unacceptable.
“Food prices have risen to the highest levels since the 2008 global financial crisis and energy bills are more than double what it was at the beginning of the year.
“Many people baulk at the idea of budgeting but it’s an incredibly useful skill, even when times aren’t tough. It should be thought of as a way of becoming your own financial planner.
“There’s no one size fits all approach and there are many different and popular budgeting methods. Finding the right one for you depends on your circumstances and personality.”
How much money do you have?
Start by adding up all your income - including salary and any side hustles or extra cash you have coming in.
You could use a spreadsheet to do this, or a free money app.
"This figure will act as your baseline and will feed into the subsequent steps," said Shaq.
How much do you spend?
This answer needs to be split into two categories: fixed expenses and variable expenses.
Fixed expenses are those that you have to pay each month, where the figures don't generally change - such as your rent, mortgage, utility bills and phone and TV packages.
Variable expenses differ from month to month. They can include purchases like groceries, going out and the enjoyable things in life.
"Your fixed expenses plus variable expenses should be less than your total for step one," said Shaq.
"If it’s not, time to start thinking about which expenses to cut back on.
"Even if the total is within your income allowance, laying out all of your expenses gives you an overview of where all of your money is going and allows you to identify areas that you are spending more than you thought or want to.
"It may only be once you see it on paper that the £200 you’re spending on Deliveroo or the £40 on streaming services each month isn’t representing value for money."
How much money would you like to save?
Once you know how much you’re spending each month, you can decide how much you can save.
Make sure you move the money to be saved to a different account before your outgoings to avoid temptation of spending it later in the month.
"For those that have little to no money in their budget to save even after going through your budget with a fine-tooth comb – don’t beat yourself up! We are living in unprecedented times," said Shaq.
How can you make things better?
Whether it’s each month or every three months you should look back at your budget and assess how well you’re doing.
If your budget is going well, maybe you can afford to save or invest a little bit more each month. Or maybe you want to treat yourself?
"If things aren’t going well, what are the reasons? Did you set an unrealistic goal for a certain category?" asks Shaq.
"Are you trying to save too much? Remember that your budget is there to relieve your financial stress and concerns, not cause them."
How to boost your income?
If you are in a financial situation where budgeting can't help, there are ways to get additional help.
There might be extra benefits you can claim, a lot of people who are facing the daily stress of money struggles, don’t realise that they may be entitled to benefits – especially if they are in full time work.
Check what benefits you might be entitled to using the Turn2us benefits calculator.
"It’s free, quick, and confidential and mainly calculates means-tested benefits," said Shaq.
"Help might also be available through a charitable grant. You can use the Turn2us Grants Search Tool, to find out what help may be available.
"Depending on your circumstances and needs, you might be eligible to apply for a charitable grant and other help – these are grants which do not have to be repaid either. It could just give you the lifeline you need."
- Visit the Turn2Us website for more information on its "How Many More" campaign
