We all know how important it is to save money so we have access to a little bit of extra cash should we need it on a rainy day, such as having to pay for car repairs.

There are simple saving tips which you can follow to ensure that you are maximising your income:

1: Save the change – We all know the old saying that our parents have told us, save the pennies and the pounds will look after themselves. This is really great advice to follow as those pennies can easily add up, leading you on the route to increasing your savings and becoming debt free.

Save the change everytime you buy something. So you can choose to save either the copper or the silver, or even both if you are feeling flush. Put them away in a sealed container so you can’t have access. When it is full, go down to your local bank and ask them to pay it straight into your savings account or to pay off your credit card, so you are not tempted to spend the cash.

2: Enjoy Being Saving Savvy – Saving becomes even more impossible if you have no motivation so it is important that you set yourself a goal, such as a house deposit or a new car.

It is likely that saving means you will have to say no to a few social offers. So every time you turn down a trip to the pub, put the £20, £40 or more that you would have spent aside. This trick will really see your savings.

3: Use Coupons – Since the credit crunch, an increasing number of people are using coupons both online and instore in order to save money.

Before you buy an item online it is always worth checking to see if there is a valid coupon on the internet. The extra money that is saved should be put aside and added to your savings and you shouldn’t notice a difference as this is money which would have been spent regardless.

4: Don’t pay to access your own money – Your money is yours and you shouldn’t have to pay extra to withdraw it. But there are cash machines out there which will do just that. Some ATMs can charge you up to £1.50 each time you withdraw from their machines, so it is always worth avoiding these and finding one close by which will let you withdraw for free.

5: Sell, Sell, Sell – Chances are you have items which you no longer need or want. Although you may think that your old clothes are not-fashionable and no one would want to buy it, you would be surprised!

Online auction sites, such as eBay, are a great way to sell your items and de-clutter your home at the same time. Or you might want to go to a car boot sale and sell your items that way

So, how to start a debt free living? This can be dependant on a number of factors, such as the amount of debt that you owe, your income and how much disposable income you have.

If you already have debt, it is important that you look at your options. There are a number of debt free solutions which you may wish to consider in order for you to start living debt free…

You may think that bankruptcy is your only option because you can start a debt free living within 12 months of declaring yourself bankrupt. However, bankruptcy is never recommended as the first port of call when thinking about starting your debt free lifestyle as there are long term consequences which cannot be avoided.

One of the most common methods in living debt free is a Debt Management Plan, although this does not mean that you can start your debt free lifestyle right away. But you will be able to make your debts more affordable to you, meaning that you can begin to repay your debts at a rate that you can afford.

An IVA is another way which you may start a debt free living. An IVA means that you must repay your debt for an average period of 60 months. Once you have successfully completed the IVA you will become debt free as any unpaid debt will be written off as part of the agreement.

There are a number of methods on how to start a debt free living, but the best thing that you can do is seek expert DebtFree advice. Our advisors will be able to offer you expert advice on your finances and help you to decide on how best to start your debt free living.

1: Learn the art of cooking – The UK is know for it’s love of ready meals and takeaways. But treating yourself to these a few times a week can really fray your purse strings. Learning how to cook means that you can discover how to make your meals for much cheaper, and then…

2: Use the leftovers – Instead of buying expensive sandwiches from the local shop, you can take your leftovers to work instead. This could save you as much as £5 a day which can really add up and go towards clearing your debt.

3: Have a night in – Once you have perfected your culinary skills you can save additional money by occasionally swapping a night out for a night in. Buying a bottle of wine from the supermarket is much cheaper than the house white in your local restaurant, or asking your friends to bring a bottle in return for you cooking could save you even more.

4: Don’t throw items out – You might have a wardrobe full of clothes which you wouldn’t ever be seen wearing again or perhaps items which are looking a little bit tatty around the edges. But you might be surprised at how many bidders you could get on your ‘vintage clothing’. So put them on eBay or another internet auction site and use this additional money to pay a little bit more off your debts.

5: Get an internet phone – Keeping in touch with friends or family abroad no longer needs to be expensive. Getting an internet phone or chatting through instant messenger could save you money on your phone bill.

6: Don’t burn fuel – Petrol is expensive so it is important that you don’t waste fuel. Driving more economically, such as breaking slowly can help you save fuel, or you could consider leaving the car at home for shorter journeys.

7: Get Debt Help – If you are struggling with debts then it is great that you are trying to be more frugal, as the small changes really do add up. But remember there is also debt help out there which is designed to help you become Debt Free by making payments which are affordable to you.

Dealing with your unsecured debt, including credit cards, store cards, personal loans and overdrafts, can sometimes be a big hurdle to overcome. Repaying this debt and being debt free should be your main focus if you are struggling with your debt.

But is it simple enough just to budget to be debt free? You may find that learning to live better on your income is the one important step you need to make to become Debt Free.

How to Budget to be Debt Free

Tally up all of your monthly outgoings – this should include how much you spend on your unsecured debts, secured debts, groceries, petrol and other necessary items. Consider all of the direct debits that you have and see if you really need them. For example, do you have a gym membership that you never used? Cancel it. Do you have a premium TV subscription? Work out which channels you use most often and which ones you can do without.

Working out your monthly outgoings can often be the worst part, and you might not want to make any changes but they have to happen so that you can budget to be debt free.

Planning to live within your means is the basis to a budget. Your new household plan will keep tracks on your spending and should help you to track your finances much more easily.

A budget should be liveable; obviously you will not be free to spend as you were before you got your budget in place because this goes against the idea of budgeting. Therefore making the budget right for you can sometimes seem a little tricky. However, sticking to the budget may be a challenge at first but learning to live with your budget can happen by adjusting your budget so it works with you, and the end result of being debt free and in control of your debts is very rewarding.

If your debts are unaffordable then you may need to take further action. For example, a Debt Management Plan could reduce your monthly unsecured debt repayments which make your budget more affordable to you