These days, most of us have to watch our budgets a lot more closely. Many families have lost jobs. Others have found that market accounts or houses have lost value. In order to be financially secure, we know that we must control our expenses better. We cannot just assume that better days will arrive soon.

A lot more people are looking for some extreme frugality tips because they just do not know how to become more frugal. Some of us remember how frugal our parents were. Somehow, we got caught up in a very consumerist lifestyle though. Actually, it is not that hard to manage money better if you know how to begin.

Your first step should be to figure out what you are spending money on now. You should try to write down your expenses for the last month or so. This is the best way to spot spending problems. A lot of times, people can spot the problems right away.

There could be too much money spent on simple things like eating out or stopping off at the convenience store several times a week. You may decide to see if you can find a cheaper utility company or better car insurance rates. All of these things that you can do to reduce your fixed expenses can help you save a lot of money by next month without a real change in lifestyle. You could just shop around for a better way to meet your needs without spending as much money.

If you need to cut your budget a lot, you may have to make some painful choices. If you have to spend hundreds of dollars, each month, just to keep debt payments current, it will be a lot harder to be financially secure. Paying off a lot of debt will probably require a plan. While you are attacking the debt, it can be painful. However, after you have cut it, you will be much better off.

You should add some money to a savings account each month. Remember the old adage that you should pay yourself first? This means that your budget should include regular contributions to short term and long term savings accounts. You should start by establishing an emergency fund so you can use it to pay for immediate needs. This will help you cut your use of credit too. Do not forget long term plans either. We all need to save money for retirement and other future needs.

Instead of relying on plastic, try using cash at the store. When you carry cash, and not credit cards, it is a lot easier to stick to your budget. when the cash is gone, you must stop spending!

If you have spent a lot of money for a long time, it may seem very difficult to change your ways. You should not have to live like a hermit. You just need to start keeping track of your expenses better, and then choose to make better choices!