"My money always runs out at the end of month"
Jannah Kelly, 28, earns $55-$60,000 as a magazine sub-editor. She runs out of cash at the end of every month, but is keen to build her savings.

Spending habits

"My parents have always encouraged me to be careful with money, and, as a result, I have $10,000 in an online savings account. But I do occasionally dip into it for things like unexpected medical bills, although I always top it back up straightaway.

"In the past I've been good at budgeting - once saving for a three-month backpacking holiday, for example - but my spending went off the rails 18 months ago when I split up with my boyfriend of three years. Since then, I've been going out with my friends practically every night. My life has become one long social event; I hate to turn down an invitation!

"In fact, I'm so busy socialising, I'm guilty of not forward planning very well. I rarely do a big weekly grocery shop, and instead find myself making expensive, last-minute purchases at convenience stores.

"I also visit ATMs a lot. I whip through cash and when I run out, I just withdraw another $100 or $200. But I don't keep track of my money particularly well, and I'm forever finding cash stuffed into jeans pockets. It's no wonder I seem to run low on money at the end of every month."

Weekly outgoings: Rent, $230; private health insurance, $15; mobile phone contract, $15.
Debt: $1542 owed on credit card.
Financial goal: "I want to have saved $10,000 by this time next year to use towards a deposit on a property, or to go on a really fabulous overseas holiday!"

The Finance Guru

Claire Mackay, 31, is a Certified Financial Planner, Chartered Accountant and lawyer working for Quantum Financial Services, Chatswood, NSW

"With her income, minimal debt and lack of financial commitments, Jannah can afford to save a decent amount each month - without dramatically compromising her standard of living.

First, though, she should clear her credit card debt; it's pointless to try to save money, which only earns a tiny amount of interest compared to the debt that's accruing on her credit cards every month. Next, Jannah should arrange for a portion of her salary - ideally, 10 per cent - to be automatically transferred into a high interest savings account every month as soon as she's paid. That way she won't even miss it. If she could put away $300 each month she'll have saved $3600 in a year. It's a common mistake to allocate savings at the end of the month, using whatever money's left over.

"One of Jannah's weaknesses is taxis; this week, she spent $75 on taxis - that's $3900 a year! She needs to consider whether she can at least use public transport one way on each outing. Jannah also spent $85 on eating out, as well as $45 on grocery shopping - $130 is lot of money for one person to spend on food each week. Perhaps, she needs to consider socialising more cost-effectively by taking turns with her friends to host dinners at home, or trying to eat at cheaper venues.

"Lastly, Jannah needs to stop treating the ATM like her personal piggy bank and get into the habit of withdrawing enough cash to last for the entire week. She should only leave the house with the money she's allowed for that day. This will require discipline and organisation, but, within a month, it'll be a habit."

Jannah's Verdict

"I'm definitely going to allocate a portion of my income to a savings plan - although I'm not sure if I can manage 10 per cent of my salary. After talking to Claire, I feel motivated to sit down and work out a monthly budget, which will help me work out how much money I can withdraw from the ATM."

Read more on what women are doing with their cash - and expert advice on how to spend smarter - in this month's marie claire.

Please note: The advice that claire Mackay provided our participants was general advice. You should seek advice from an accredited Financial Planning Assocition member before making financial decisions. For more information, visit www.fpn.asn.au