Become Aware of What You're Spending

Most people aren't aware of what they really spend in a month. If you've never tracked your expenses, start by writing down all of your normal fixed monthly expenses such as your mortgage or rent, your car payment, any other installment or loan payments, insurance biils, cable bill, Internet provider, health club and so on. Then go back over the last 6 to 12 months and calculate average monthly expenses that fluctuate - utlities, phone bills, food bills, clothing expenditures, auto maintenance, medical expenses and so on.

Finally, keep a record for 1 month of everything you spend money on during that month, no matter how big or small - from gas for your car to coffee at Starbucks. Add up everything at the end of the month so taht your are consciously aware - rather than unaware-of waht you're spending. Check off those items you must pay for and those things that you have discretion over. this exercise will get you conscious of what you're currently spending and where you could cut back if you chose to.

From The Success Principles (How to Get from Where you are to Where You Want to Be) by Jack Canfield