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Bank charges: Understand where your money goes to reduce expenditure

A number of families may be looking to cut back on their costs in order to avoid having to pay bank charges.

If this is the case, they may want to sit down and work out exactly where their money goes each month, as an expert has said this is the best way to reduce expenditure.

Martin Bamford, chartered financial planner and managing director of Informed Choice, said: "A mistake people often make is to allow their living costs to increase each year in line with pay rises.

"It is by increasing this gap between earnings and expenditure that you are able to build long-term wealth to support your family."

He added that once you have worked out all of your outgoings, you must then make the "tough decisions" that come with cutting down on costs on non-essential items.

Mr Bamford also noted that the cost of housing has a "big impact" on living standards in different parts of the country.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.
 ADNFCR-2776-ID-800621996-ADNFCR



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