Whether we like it or not there is no getting away from the fat that money will inevitably feature prominently in our lives. This, fact alone, combined with the extremely difficult economic conditions that currently prevail, means its more important than it has ever been to be up to date and educated on money issues.The more we know about money the easier it is to avoid some of the financial pitfalls that trap the unwary.

It is for instance important to get into the habit of budgeting with your finances. This doesn’t need to be anything very formal, it simply means you learn to become more aware of what you are bringing in each month and how you are spending it, so that hopefully you can make some small adjustments to your spending habits which over time will amount to a significant improvement in your finances.

To be effective, you need to be completely honest so that you take into account even the smallest little items. After all, a few small direct debit payment each month may be pretty insignificant in themselves, but accrued together over the space of a year they can mount up. The golden rule is to arrive at a situation where, as Mr Micawber might have said, your income is greater than your expenditure.

If you find on closer examination that your outlays are really mounting up and leaving little room for manoeuvre, then you will need to carefully examine each of your regular payment to see where economies can be made. What about that gym membership you seldom use? Or that TV subscription you never really take advantage of? If things are tight, cut out anything you don’t really use, need or want, and you will soon see the pressure on your budget easing.

Then there are the payments you make on essentials like gas, electricity and other utilities like broadband. Shop around and make savings here where you can. It all adds up in the end.

No matter how careful we are, there always seem to be the odd occasion when we find ourselves struggling to make ends meet. Usually this happens when something unforeseen occurs, maybe an urgent repair needing done to our house or car or when an unexpectedly high gas or electric bill leaves you struggling to budget. So, if we all experience these peaks and troughs from time to time what is the best way to ride them out? In other words when it comes to emergency funding, what are the options?

In the ideal world of course you would have money set aside in a savings account for just such an eventuality. However, for the purposes of this exercise we shall assume that this is not the case.

The most obvious way of accessing extra cash quickly is by means of an overdraft or via your credit card. This presupposes that you have an overdraft already in place or that you currently hold a credit card. If neither of these situations pertain, then you may find the application process which can be lengthy means these options are not viable.

You could consider asking a family member or close friend to lend you money on a short term basis. This can however be embarrassing for both parties and extremely awkward if the person you ask is unable or unwilling to assist.

Another option would be to use any jewellery or personal items such as watches that you do not use or need at the moment and pledging them for cash at a pawnshop. Again some may find this a little embarrassing, but using pawnbrokers has become a lot more common these days and the type of item they typically deal in has changed as well.

If you prefer something with no potential for embarrassment, then you may have to consider a quick loan or payday loam. There are pluses and minuses with these loans. On the positive side they are quick and easy to apply for, everything is done online so there are no embarrassing interviews and you can usually access the funds you need in a matter of hours. On the negative side, the interest rats charged can be excessive, especially if you are unable to pay back the loan on time. If you do go down this route ensure you use a responsible pay day lender such as Blue Sky who have a well-established policy as regards rollover of the loans. It is essential you use payday loans only in the short term, failing which you may find yourself in even more trouble than you were when you started off.