The best way to control your spending and avoid debt is by keeping track of what you are spending on. Start by creating a budget for yourself. List down all your income and expenses. Besides your main expenses, make sure not to overlook small or irregular expenses.

Making a budget can help you manage your money more wisely. Try to think critically about the money spent and whether or not it was a necessary expense. See what you can cut out or spend less on. Review your budget regularly to make sure it is still in line with your needs. If necessary, talk to a professional who can develop a better budget plan for you.

Reduce spending by using your money to buy only necessities and limit unnecessary expenses such as entertainment and expensive gifts.

Eating out are probably one of your biggest expenses. Learn how to prepare your own meals. You can opt for more economical meals or bring your lunch to work. Besides saving money, making your own food can be healthier too. When buying groceries, prepare a shopping list so that you are not tempted to buy unnecessary items.

Sell luxuries as you may not have the funds to enjoy these things during the economic crisis. If you have two or more cars in the household, consider selling one of the cars. You can also save on fuel if you keep the car that uses the least amount of fuel.

Exercise at home or at parks instead of signing up for fitness classes. Get your hair cut less often and consider going to a less expensive hair saloon. Wash your own car, repair household items, learn some useful DIY skills and do chores that you regularly pay others to do. Do not waste money on electricity. Turn switches off when you are not using lights or other appliances.

Put spare change into a jar and you will watch your savings grow to hundreds of ringgit a year, which you can deposit into your savings account.

Debt can be overwhelming when you do not have a clear idea of how much in debt you really are. Gather your bills and make a simple list of all the debts you have. Note down the particulars, including name of the creditor and your total balance.

Then pay off as much debts as possible, especially unsecured debts such as credit card balances. While having a credit card that you pay off in full each month is acceptable, having an outstanding balance that you have to pay interest is a disaster.

If possible, get rid of the credit cards as soon as you pay them off or keep only one for emergency use. Having too many credit cards can increase the temptation of overspending.