We are a nation of planners. We plan our vacations, our holidays, even weekly chores with to-do lists. But when it comes to mapping out how we spend our hard-earned dollars, we often neglect the task. A budget is nothing more than a simple plan for our spending. It outlines the amount each month that we will spend, the amount that we will save, what items we will buy, and what items we can do without.

If you want to get a better handle on your daily budget, a good place to start is to record everything you spend for one month. There's no need to try to adjust your spending habits just yet. Simply write down what you spend for 30 days. At the end of the month, look at where your dollars have gone. Oftentimes, simply looking at how much you spend a month and where is more than enough incentive to embark on a new, more frugal lifestyle. Sort your list into categories of essential buys and nonessential ones. Decide which nonessential purchases you can do without. One word of caution: do not try to cut out all nonessentials at once and think you'll be able to live an ascetic lifestyle all of a sudden. Creating an unrealistic budget is setting yourself up for failure. Modify and improve your budget slightly each month, working little by little to achieve your financial goals, whatever they may be. Make sure to include some "fun money" in your budget each month to spend on a hobby or recreation that you enjoy. Doing this will make it more likely that you stick to your budget. After all, you want to create a set of goals that you can stick to for a lifetime, not ones that will burn you out after a few months and cause you to give up.

First, let's identify a few areas to cut expenses and allow you a baseline to use during months two and three:

1. It is necessary to look into the monthly expenditures that are not necessities. This can be broken down to average expenditure for one week. Less money than spent the previous month, should be taken out - in weekly allotments. This type of personal budgeting can be used for non-necessary expenditures for the next month. If the money is spent before the week ends, the remaining extra expenditures can be cut.

2. Look at how many times you eat out each week. Make a plan for the first month for eating out, but with fewer days allowed for eating out. Pick days that you know will be easier for you and stick to it.

3. Checking out the clearance racks and sales when you go shopping is always a good idea. If you check these items first you might be surprised what you find. You can actually by classic pieces that will help your wardrobe grow without breaking the budget.

4. See how much you can shave off your budget by taking the time to compare shop for the best rates on necessary services such as trash pick up, interest rates on credit cards, satellite or cable and phone.

5. To prevent paying additional charges, cash should always be withdrawn from your bank's ATM machines

6. To discourage impulse spending, list the items you intend to purchase before you go shopping. Force yourself not to deviate from that list! Keep in mind the comforting thoughts that you will save money this way and that you can always purchase additional items next time you shop.

{Overall, remember reduce stress by starting with a snap shot of where you are spending money now, make a budget in increments, allow yourself a few luxuries as you go, don't be too hard on yourself. You want the budget to work over the long term. Create successes for yourself in the beginning, reevaluate over a period of several months, and a new lifestyle will emerge where you will be more in control of your spending and have less wasteful spending that will generate more cash flow for you as well.}