How to clear your credit cards

Life is all about surprises. From weddings abroad or a boiler breakdown to school trips, these are the items that throw budgets off course. Make a list of the predictable events first. For example:

• Christmas extras (Christmas tree, food, travel costs)
• Car service, MOT, car purchase
• Home furnishings e.g. new sofa
• Boiler service
• Moving house
• Events e.g. weddings, christenings (travel, clothes etc.) children's parties
• School day trips and holidays
• Emergencies e.g. boiler breakdown

Check you haven't already listed these before, estimate the total cost of each and note the figures down on your spreadsheet. Total these up to work out how much you'll need to budget for big expenses each month.

In the case of emergencies, consider putting cash into an emergency savings account. It's generally recommended that you have 3 months' worth of wages set aside 'just in case', but this may not be the best approach for you.