Hey big spender – follow the Chancellor and balance your books

But how many of us have our own personal finances and budgets under control?

One of the problems is how we can allow our emotions to rule the way we handle money, says financial expert Jasmine Birtles.

“Many people make themselves poor with their attitude to money,” she says. “There are generally several different types, including those who use spending simply to make themselves feel better about problems in their lives, and others who suffer finance fear, understanding what kind of spender you are can be enormously helpful.”

Split-Personality Spender: Good at saving money by spotting special offers and deals, taking your own lunch to work, but regularly blows the budget on a “treat”.

“The recession has made everyone more savvy about bargains and looking for good deals, and people are getting very good at being aware of the need to make economies,” says Birtles

“But it can lead to an erratic scrimp-and-splurge mentality which periodically derails budgets.”

Remedy: Try to pinpoint how, why and when you spend. You may see a pattern of spending linked to vulnerable times during each month and so can be on guard then.

Focus on what you really want out of life and how you can afford it. If you're in debt, set up a standing order to pay it off, but rather than concentrating on the sum you’re losing, concentrate instead on how good you'll feel when it’s paid off.

Scared Spender: Never looks at bank statements, probably has a drawer stuffed with unpaid bills, and even hearing the word ‘finances’ induces stress.

“Fear and neglect will be costing you dear, as you'll probably be disorganised, not savvy about researching and getting good deals, and may be paying unnecessary interest charges on late bills,” says Birtles.

Remedy: “Face up to your finances even if you have to get a friend to sit with you so you finish the task.

“You need to make a list of all your outgoings and incomings, take stock and maybe get advice on making economies and budgeting better. One good first step is to take a direct debit detox and resolve to try to find better deals.”

Flabby Spender: Doesn’t necessarily have money problems but is aware that they seem to have less money than they should. “If you're going to keep control of money, you have to work at it by focusing on it regularly,” says Birtles.

Remedy: Detail your spending for a month which will highlight where you're wasting money on unnecessary small purchases.

Sticking Plaster Spender: Women are particularly prone to ‘compensatory’ spending and splashing out to make themselves feel better about problems.

Unfortunately, this sort of spending will always keep you in a poverty trap as you are at the mercy of your emotions.

Remedy: “You need to analyse why you’re really spending money and look at the emotional area of your life which is causing you to look for a quick-fix.

“That feeling can be addictive but you need to get money into perspective by adding up what you've spent unnecessarily over three months.

“You might benefit from talking to your partner or a professional about your issues.”