Interest rates have gone up again. They look like going up further. So it’s time for home owners to tighten their belts to meet mortgage repayments.

The thought might terrify many – we’ve all tried budgets and they don’t work. So how do you make a plan to cut household spending and actually stick to it?

There are a few keys to making your money saving efforts successful:

Make changes realistic. Some money saving experts, for example, advocate growing your own vegetables. But you have to ask yourself: am I really going to do it? Is it worth it? You’re better off setting realistic goals that you will actually carry out.

Don’t make radical spending cuts. Some say the best way to save is completely giving up things like coffee, alcohol and eating out. But don’t we all enjoy our little treats and luxuries? And who wants to be stuck in the house all the time? Making major changes to your spending means you’ll be unlikely to stick to your plan. You’ll give up coffee for a week then get so resentful you’ll restart your habit a week later.

Downscale. A better way to approach cost-cutting is to downscale. For example, if you have three takeaway coffees a day, reduce it to two. If you have a fancy coffee, simplify it to a cheaper one. You still get the pleasure of coffee without blowing your budget.

Focus on the benefits. Many cost-cutting measures can help you become fitter, trimmer and have more quality family time;

Here are ten money-saving actions you can take right now that won’t ruin your life but  will help meet those increased mortgage payments:

1. Eat Out, But Skip Side Orders.

Eat out, but skip side orders. Keep eating out, but trim how much you spend by avoiding expensive side salads, bread and chips. Share dessert and maybe have one glass of wine instead of two.

2. Review your telephone bills.

You might be surprised, for example, at how much you’re spending on text messages. Because you think they’re cheap, you’re more likely to use them mindlessly, racking up big phone bills.

3. Pay off your credit card.

If you have any spare cash, even if it is for something important, it doesn’t make sense to have any credit card debt. You could be paying 18 per cent on your credit card debt, but earning 4 per cent on your cash savings. Another alternative is to switch your credit card debt to a rival bank and take advantage of their introductory low interest rates.

4. Take food on outings.

If you’re going on a family outing, such as a football match, take a prepared meal or snacks. You can still do those fun activities, but without the added extra costs of expensive junk food.

5. Don't pay for exercise

Stop paying expensive gym memberships and start exercising outdoors. You’ll save money and also feel better exercising in the fresh air.

6. Buy a reusable water bottle.

Stop buying a new $2.50 bottle of water each day. Buy a sports drink bottle and fill up at the tap.

7. Take lunch to work.

This is one of the big cost savers. Use leftovers from last night’s meals. Take lunch from home four days a week, then reward yourself with a bought lunch on Friday.

8. Go out for lunch.

Instead of going out for dinner, go out for lunch, which is cheaper. Instead of eating out at breakfast, have it at home but go out for a coffee. You get out of the house for a fraction of the cost.

9. Set a present budget.

Birthdays, anniversaries, weddings keep coming up and knocking your budget for six. Set a strict budget, say $30, for each present and stick to it.

10. Make meals last for two nights.

That could mean cooking in bulk and then freezing dinners. Eat just one serving of dinner so it lasts longer. The key is to eat mindfully and savour that one serving.

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