Always broke but don't know why? Poor financial habits could be quickly emptying your wallet. Here are the reasons why you never have any cash to spare and how to make your money go further this year.

A 2013 Gallup poll found that more than two-thirds of Americans don’t have a household budget and a third of Brits don’t either. Every month adding up all your income (after tax) then subtracting how much you spend is a good starting point. Apps such as Goodbudget, Wallet and Spendbook will help. The key is to set a realistic budget you can stick to.

In an age of cash cards and contactless shopping it’s easy to overspend because no ‘real’ money is exchanging hands. One way to curb this is to draw out a set amount for the week and try not to use your cards – this way you’ll become aware of exactly how much you’re spending and where you can save.

It’s well known that we’re more likely to buy more food when we’re hungry but, according to the University of Minnesota, hunger is more likely to make us buy other stuff too. This is because being famished stimulates our desire to acquire things. So eat before you shop or you’ll be buying more than you need.

Frozen food, especially vegetables and more healthy items, lasts for longer and is often cheaper than fresh food. Reduce food waste and your shopping bill by stocking up on products you can freeze.

Market researchers Onepoll.com found that the average American spends $1,200 (£839) a year on fast food. In the UK, Vouchercodes.co.uk found that Brits spend an average of £1,308 ($1,870) – that’s a third of their total food budget. Just halving the amount of fast food you eat will save you hundreds.

Buying lunch and snacks to eat at work costs Brits £1,920 a year ($2,747)! In the US, Visa found that Americans spend $936 (£655) on lunches annually. Making your own packed lunches will save you a small fortune.

The average British coffee drinker spends £393 ($562) on coffee annually; the average American coughs up $1,100 (£770). One way around this expense? Invest in a thermal coffee mug and make coffee at home before heading out.

If you drive or use public transport to get to work when you could cycle or even walk you’re not only losing money, you’re missing a perfect opportunity to get fit without shelling out for gym membership. If the journey is too far, consider car-sharing to save fuel and money.

If you watch a lot of films, box sets or documentaries switching to a streaming service such as Netflix ($7.99/£5.99 a month), Amazon Prime ($99/£79 a year), or Mubi ($4.99/£4.99 a month) will work out cheaper than buying DVDs or renting films through your TV service provider.

The internet is a fantastic place for finding bargains but we can all have too much of a good thing. Being able to buy something with a few clicks rather than cold hard cash makes it harder to keep an eye on your spending, and you’re more susceptible to fake reviews, counterfeit goods, hidden costs, or fraud and identity theft. Limit your shopping online and then only use sites you trust

Loyalty cards are everywhere – from coffee shops and supermarkets to airline carriers. Accumulated points mean money off and free goods. Yes, the companies are buying your loyalty but if you shop with them regularly anyway, loyalty cards can offer real rewards. Don't like carrying lots of cards? Use the Beep 'n go app to store your card details.

This is no secret – stores’ own ranges (often called basic, essential or value) are usually cheaper than branded goods and often taste just as good – as they can be produced in exactly the same factories.

Stocking up by bulk-buying non-perishable items can make a real difference to a tight household budget. Taking advantages of offers then storing or freezing the products is a good way to make your money stretch further.

Websites such as TopCashBack, where you can earn money back by shopping online; grocery comparison sites such as MySupermarket; and luxury and leisure deal sites such as Groupon and Living Social all offer the chance to save money by being a savvy shopper.

It pays to keep an eye on mortgage deals, especially when yours is coming to an end, the interest rates are changing, or if you’re not tied in. Sometimes, leaving a mortgage earlier than the term agreed works out cheaper in the longer-term even if you have to pay a penalty charge upfront.

Motoring, house, health, life, pet, phone – these are just some of the insurances we fork out for every month. They can add up to thousands a year so it’s worth looking for better deals annually. Alternatively, speak to your current provider and ask them for a better deal – you’d be amazed at how often they will oblige you.

In the UK, the average household credit card debt is £2,293 ($3,275); in the US, it’s $15,355 (£10,747)! As the average credit card APR stands at 14-15%, consumers are paying far too much for credit. Change to an interest free option if possible, set up a direct debit to pay off a decent sum each month, then don’t use your card again until your debt is manageable.

Find a plan to match your real usage – it could be that you’ve outgrown your current one or you don’t use your phone much but your contract cost doesn’t reflect this. Try going contract-free or pre-paid or tell your provider you’re leaving – they won’t want to lose your custom and will try to keep you. Use free messaging apps such as What’s App, or get rid of your voice plan and use Skype or Google Voice to make calls.

In the UK, household food waste costs the average household £470 ($670) a year – that rises to £700 ($1,000) a year in households with children. Not only is this wasteful, it’s shameful – according to endfoodwastenow.org, consumers in rich countries waste as much food as the entire net food production of sub-Saharan Africa. Plan meals and shopping lists, get clever with leftovers, and donate to food banks.

There are a number of easy ways to reduce your household energy bills such as turning down the heating; minimizing the use of power showers (they can use up more water than a bath); washing clothes at a lower temperature; putting appliances on stand-by; and shopping around for a better value energy plan.

According to the Bureau of Labor Statistics, the average American consumer dedicates 1% of their income to alcohol. Smokers who have ½ a pack (10 cigarettes) a day spend $1,176 (£824) a year on tobacco. In the UK, Brits spend an average of £787 ($1,124) on booze each year, while smokers who have five cigarettes a day can save around £548 ($783) a year by giving up.

Yes you deserve to eat out, take trips and taxis, and buy clothes, electronics and music but be aware of how much life’s little luxuries add up. Have a monthly budget for treats and stick to it. The likes of Groupon, Living Social, Last Minute and Travel Zoo are go-to sites for discounts and offers (though watch the small print) and Uber is cheaper than licensed cabs – though not as cheap as the bus.

Babysitting usually costs between £7-15 ($10-21) an hour, which can make going out expensive. Instead join – or create – a babysitting circle. In return for babysitting yourself you get free childcare and a cheaper night out.

Do your children really need that designer outfit or trainers that they’ll outgrow in a few weeks? Or new books, shoes or electronic devices that can be sourced second-hand on Amazon or Ebay? Or the branded cereal that tastes no different to the store’s own (do a blind taste test to prove it). Don’t give in to their demands – and don’t take your kids food shopping without feeding them first.

In the US, an estimated 6% of adults are oniomaniacs – or shopping addicts. In Britain that figure rises to 8-16%. Shopping gives many of us a short-term high and provides an escape from depression or anxiety but it can have debilitating consequences on our finances. Talk to a friend, find an alternative ‘hobby’, or seek help from a doctor or therapist.