So, here we are in recession. Jobs are as common as hens' teeth, each week heralds more businesses closing down and jobs lost, and you have to tighten your belt even more.

In case you didn't know it, financial or money management is even more important to everyone now. This means a) monitoring your money matters to ensure that they proceed properly and smoothly, and b) taking measures when necessary to eliminate any problems in the smooth running of those matters.

Ensure that you do not overspend and end up getting into debt. It is a good habit not to accept offers of store credit cards, as these can end up being 'hidden' debts. All debts eventually have to be paid. Be wary of thinking that debt reduction schemes are an easy way out. They are strictly a last resort and not something you should consider acceptable for too much lavish spending. After all, if it was that easy companies would not offer loans as it would be too easy for borrowers to write off the debt.

It is far better to apply the kind of money management methods outlined here:

1) decide what you want for your money. This in itself can involve a lot of thought. Try to be objective and keep to the topic of examining your finances. You could even examine every purchase that you make routinely.

2) try to get good value from everything you buy. This means:

a) questioning whether you need a product before you actually buy it.

b) shopping around, comparing products and prices at competing suppliers for those products that meet your needs.

2) Cashflow plan

Plan your spending over the coming weeks and months. With a sheet of paper and pen or pencil, or using spreadsheet software if you have it:

a) write the weekly or monthly dates across the top of the sheet, allowing enough space in the columns below to enter details as in (a) to (d) below, and at the edge of the paper write on the first line 'Balance at start', on the second line 'Income', on the third line 'Expenditure', and on the fourth line 'Balance remaining'.

For each period, in the appropriate line and column:

a) enter the money in hand at the period start. This will be the amount of money left at the previous period end.

b) the income that you confident of receiving.

c) the expenditure you expect to make.

d) calculate the money left. (Balance at start plus income minus expenditure in the period).

Also, for each period record your actual spending and calculate the difference.

Where you find you have overspent, determine what it was that you overspent on and remember to avoid that overspending in future. If you have overspent you might have reduce your normal spending to compensate for that.