Six things you can do today to save money

Knock your finances into shape and watch your debts disappear!

I went on the 'Special K' diet last week. I can't tell you if it works, because after about four hours I was starving, and decided it wasn't for me.

It's that time of year - when thousands of us go on diets and exercise like mad to try and look good on the beach later in the summer.

But what about applying that bikini diet to your financial affairs? Here's a quick six-point health plan that should knock your finances into shape:

1. The check-up

The first step is to undergo a thorough financial health check-up. Only then will you be able to work out what you need to do next.

You know how horrible it is getting on the scales? Well, it may be just about as unpleasant, but you need to open all those bank statements. Use this Statement Of Affairs calculator to work out exactly where you stand - and then devise a budget based on your incomings and outgoings.

It's also a good idea to find out what your credit rating is like, so you know what loans, credit cards and other financial products you're likely to be accepted for.

You can get a free credit report from Experian. Just remember to cancel the agreement before the 30 day trial period is up, to avoid being charged in the future.

2. Cut out the junk

Next, you need to cut out all those unhealthy financial products (and habits), just like you'd cut out chocolate, cake and crisps.

That means ditching those store cards and changing your everyday behaviour, so you can stop spending on credit and start saving money on everything from food shopping and energy usage to nights out and holidays.

It's also worth investigating whether you're shelling out unnecessarily for certain insurance products. Are you paying for rip-off Payment Protection Insurance (PPI)? Or perhaps you're paying twice for the same insurance? Read Don't double up on cover to find out more.

3. Swap to healthier alternatives

Of course, changing your spending habits won't get you out of debt immediately. If you're in debt at the moment, think about swapping to healthier credit products today.

For example, you could drastically reduce the amount of interest you're paying on your debts by shifting them to a 0% balance transfer credit card. The market leader at the moment is the Virgin Money card, which offers 0% on balance transfers for 16 months.

This will mean you can focus on paying off your debt, rather than just grappling with the accumulating interest - so it should be possible to clear your balance more quickly.

4. Build better habits

Now that you've slimmed down your spending and taken steps to clear your debts, it's time to start thinking about saving. After all, we're in a recession. If you can build a long-term saving habit, your finances will be healthy enough to survive if the worst happens and you lose your job.

Ideally, your emergency fund should be built to last you for at least three months of unemployment - preferably more. For a rundown of your best savings account options, read Top 20 savings accounts and ISAs.

5. Crash dieting doesn't work

A dramatic crash diet may help you slim down for a month or two, but the chances are you'll soon put the weight back on. The same principle applies to your finances: Slash your spending to the point where you're not having any fun, and it just won't be a sustainable.

Whether to improve the health of your body or your bank balance, you need to work out a sensible, long-term strategy that rewards you for 'good behaviour' every now and again. That way, you're more likely to stick to the plan, and less likely to succumb to dramatic spending/eating blow-outs!

6. Speed up the process

Finally - you'll lose weight faster if you exercise as well as controlling the calories. In a similar way, your financial situation will improve more quickly if you can up your income at the same time you lower your outgoings.

Ten ways to make money in your lunch hour is a great place to start!

Alternatively, here are five ways to increase your income or you could give yourself a 6700% pay rise in ten seconds.

Good luck!

More: Feed five for under a fiver! | Five ways to save money you have never heard before