The headlines around the recession are enough to give anyone, financially stable or not, concerns about money. Nine million UK adults worry about money daily with 24 million not feeling confident about managing their money (MaPs Financial Wellbeing Survey).

It’s been 13 years since the last recession and for many young adults, this will be the first time it directly impacts the way they manage their money. The research shows it’s 18-34-year-olds that are the most worried about money.

Worrying about finances can adversely impact your sleep, self-esteem, and energy levels. The shame, fear and tension increase your risk of depression and anxiety so it’s important for your mental well-being to understand and get in control of your finances.

I’ve had to rethink my financial planning many times. I was 28 when I walked out of my corporate job without a backup plan, to get home to a husband fretting about how the hell we were now supposed to pay the mortgage.

It all starts with budgeting, here are the five areas to consider:

1. What are your fixed costs? What do you need to pay?

Rent, bills, insurance, groceries, transport to work. Anything that can’t be compromised.

2. What are your additional costs?

These aren’t necessary purchases for survival but things you regularly spend money on nonetheless i.e., the hairdressers, flowers, eating out, and gifts.

3.  What do you need as an emergency buffer?

This is the excess on your car, health, and home insurance should you ever need it if the unexpected happened.

4. What is your ability to save?

If you have financial goals such as buying a house one day or upgrading your current one, going on a holiday or saving for a child, what can you realistically put away each month?

5. Do you have money available to invest?

I’d never advise investing in anything you don’t understand but if you are familiar with the stock market, this is a long-term financial growth consideration. For example, I used to put money aside every month towards a piece of art as an investment.

Therefore, you can create a picture of the amount of money you spend on each of these and then the amount of money you should or want to spend on each. They say, “what gets measured, gets managed” and if you’re tracking spending across each area, prepare to be surprised – you may not have realised how much you spend! A £2.95 coffee habit can rack up to £767/year if it’s every weekday.

There are a few things I do in life to ensure I spend the minimum:

Prioritise long-term financial stability over dopamine hits. When I got a pay rise, I didn’t instantly go and upgrade my car, home, or taste. The world may convince you that you need these things to have social status, yet a Ferrari still does the same thing as a Kia or a bus by getting you from A to B. You may be sitting in a nicer car but still be investing or saving the same amount and should an emergency hit, you’re screwed.

Debt always comes at a price. Pay off any debt before making additional purchases. This goes hand in hand with not spending money you don’t have. Debit accounts over credit accounts and paying off your card in full wherever possible ensure you’re not building a huge interest bill.

Don’t spend money before it’s yours. If you’re a business owner expecting to make a sale or secure investment, don’t already go spend that before it’s confirmed and landed in your bank.

Recognise and halt impulsive spending. I’ve fallen victim to these many times previously. Picking up things at the supermarket you don’t necessarily need or being retargeted with ads for that dress you were considering so you just buy it. My advice is to leave it for a week. If you still really want it and can afford the expense, get it. Otherwise, you could put that same amount of money in your savings account, benefiting you more long-term.

Waste less. Don’t buy your food for the rest of the week if you’re not sure you’ll be in, shop a few days at a time. If you need some new clothes, check out second-hand sales sites and charity shops. Rent rather than buy – you can rent everything from power tools to dresses. Ex-Prime Minister Boris Johnson’s wife Carrie rented her wedding dress for just £45 when others spend thousands.

Compare prices. Own brand products are made in the same factory as branded products and do the same thing. Use comparison sites and check regularly if you can get a better deal on your mobile, insurance or travel. A Tesco carrier bag does the same thing as a Chanel handbag but only one will leave you in debt.

Loyalty shopping and rewards. You can earn points on everything from your petrol to your shampoo. Do bear in mind these schemes are built to encourage increased spending so turn a blind eye to offers for products you wouldn’t already be buying and overspending to earn additional points.

This is how I mitigate rising costs and have always kept my outgoings to what’s essential to make sure my future isn’t one of financial struggle. The budgeting exercise shows you where your money is going. I can now survive on 10% of what I was earning in my corporate career by managing my expenses.

I’ve found much more freedom and happiness in my life by getting in control of my finances and I know it’s possible for others too.