Money doesn't last forever, so making the best possible use of each pound in your pocket really counts - especially at a time like this, when prices are going up faster than the average wage.

Which is why budgeting matters so much. Of course, it's always a good idea to budget properly, even in times of plenty - the better your budgeting skills, the easier you should find it to stay on top of your financial affairs and put money to one side for the future, whatever it is you're saving up for.

We'll start with a look at the fundamentals of budgeting, then go on to a few 'alternative budgeting' tips.

Fundamentals of budgeting

How much comes in, how much goes out - and where does it go? The fundamentals of budgeting in a single sentence!

Budgeting is all about tracking income (relatively easy for most) and expenditure (which tends to be broken up into a lot more categories than income).

As long as a household can see that their income's greater than their expenditure, it means they're living within their means. Rather than getting into debt, they should have the opportunity to put some money aside for the future.

But many a budget has run into problems because people underestimate what they're spending on certain things - or forget to take expenses into account. For example, it's easy to end up struggling when an annual bill has to be paid, which is why it's important to think ahead and set enough aside in the months running up to the date it's due.

Alternative budgeting tips

Times have changed a lot since the days when people commonly put money in separate pots on the mantelpiece. Of course, you're still free to do that - but you might find more modern ideas (and modern technology) provide alternative ways of budgeting that could be easier as well as more reliable.

For example, a lot of banks offer SMS services these days, helping you keep track of your money, find out when you're running low on cash, check out your latest transactions and so on.

Then there's the thinkbanking bank account, which offers a two-account system: one account for essential bills and the other for spending money. A lot of people choose to have two accounts and split their funds themselves, but this account is designed to make sure it's handled on their behalf.

Online banking has obviously made budgeting a lot simpler for bank customers all over the world. The idea of organising your own transactions at any time, day or night, really appeals to those who like to stay on top of their money - and do it in a way that suits them.

But not everything's high-tech. If you live with a partner, why not make a game of it and see if you can help each other budget more strictly? You could compete to see who can save the most, find the best bargains, or come up with the best money-saving idea. You could each draw up a list of the areas where you waste the most, and find out who can cut back on their extravagances the most effectively.

Perhaps the winner could get to choose the weekend's activity - or the loser could be left with the washing-up all week…