Five ways to combat the spending cuts

1. Check whether you can remortgage to get a better deal.

Over your lifetime, your mortgage is likely to be your biggest outgoing, but it could also deliver your biggest saving.

2. Shop around for better deals on your utility bills.

You may be able to save on gas, electricity, broadband, landline and mobile phone bills, or even get a good value package. And don't forget insurance: deals on car, travel and household policies vary hugely.

3. Face up to debt.

If you have money outstanding on a credit card or an out-of-control overdraft, consider a loan to reduce monthly payments. Better still, make small savings elsewhere, if possible, in order to repay what you owe.

4. Curb unnecessary costs.

Make a packed lunch rather than buying sandwiches at work; cancel that gym membership you never use; and be honest about where your money really goes so you can make sure you fork out only for what you need, rather than what you want.

5. See if your employer offers any added benefits.

Ask if it can contribute childcare vouchers, or if you can work from home a day or two a week to cut down on commuting costs.

More about