I'm not particularly good at managing money, mostly because it's been so tight for as long as I can remember, that there hasn't been much that I could actually choose how to spend. But when hard times came knocking (hello, unemployment!), I found there were still ways to stretch those pennies further.
Switch to the 'basics' foodstuffs range of your chosen supermarket (in my case, Sainsbury's), rather than the 'premium'. Some are rather mediocre quality – the coffee is too acid for our taste, the toilet paper is so thin it's not cost effective – but most are just slightly smaller than the regulars (Scotch eggs, tinned tomatoes, biscuits, chips). Cuts of meat can go either way; some end up in basics only because they're poorly cut, others have so much fat and/or gristle that the actual meat on them comes off as more expensive than more 'deluxe' ranges.
Use those loyalty cards and vouchers. I hardly ever go into a shop where I have no card to swipe these days. Nectar points are flexibly redeemable; they can stretch the grocery budget or buy gifts and little luxuries that one wouldn't afford otherwise.
When you find an offer, buy in bulk. This is ideal for non-perishables, and only storage space is the limit.
Upgrade your home insulation. We've just jumped at the opportunity to have British Gas do both the loft and the wall cavities for free. It can make a great difference to the heating system's efficiency, not to mention the utility bills!
Shop around for a good phone/internet/TV package. We are with Sky, and get HD satellite TV, unlimited broadband and essentially free landline calls (including abroad) for much less than each one would cost separately.
Consider switching to a pay-as-you-go mobile phone and a prepaid credit card, so charges will depend entirely on usage.
Plan outings around establishments' happy hours, which can reduce the bill greatly. If I bother to take the family to the Harvester before 5.30pm, we'll pay 1/3 less than after.
Entertainment doesn't have to cost a fortune. Not with libraries, book swap clubs, DVDs coming out hot on the heels of theatre releases, digital downloads available at bargain prices, and the option of entertaining at home.
Use cash as much as possible. You can't rake up an overdraught when there's nothing more in your wallet to spend. Seeing exactly how much you have allows more efficient rationing.
Don't mope. Whether it is a temporary thing, to weather some hard times, or there seems to be no light at the end of the tunnel, bemoaning your fate and feeling deprived all the time gets depressing and can very easily lead to some overindulgence, just to drive the blues away. I've been there. It's more effective to consider it lifestyle-building. Just like building new lifelong habits is a more effective weight loss tactic than a crash diet.
After all, the way we spend each day ends up being the way we spend our lives.
