Do not cancel your insurance policies, life or disability cover. It is during times of financial difficulty that you can least afford to risk significant financial loss;

• Reduce your spending on non-essentials such as magazine subscriptions and television channels that come at a cost. Cut out all luxuries for as long as you are struggling financially;

• Learn to budget. Committing expenses to paper will enable you to determine non-essential costs. It will also encourage you to set aside money for bills that have to be paid. If you have spare cash at the end of the month, you are not working according to a plan. All your money should be accounted for every month;
• Resist the temptation to treat yourself or your family on credit. You may argue that times have been tough and that the family deserves a reward that can be financed by using the credit card. Not only will this thinking deepen your financial woes, but it will also reduce your flexibility when dealing with emergencies such as needing a new tyre after hitting a pothole;
• Contact the lenders with whom you are servicing a debt (banks, retailers) and renegotiate your debt repayments. Most institutions would rather restructure your debt than let you default;
• Always pay your bills first;
• Sell items that you do not need;
• Try to hold on to your investments, but if this is absolutely not possible, speak to your financial adviser or the financial institution that you invest with before you cancel your investments. Often there are alternatives;
• If you have no choice but to cancel your investments, make sure you use the freed money as well as the monthly investment amounts to repay debt. Do not cancel investments to free up spending money.