A good way to get your budget in order is by playing The Necessity Budget Game. For one month only buy necessities (food, clothing, shelter, and travel). Remember only necessities, meaning no Starbucks, no new cloths (unless someone broke in your home and robbed you blind of all you cloths), no eating out, and no going out for one month. This may be extreme but, this will give you a true understanding of what it really takes for you to live month to month.
At the end of the month sit back and look at your bank statement and see the difference. You will notice the absence of about 15-20 small unnecessary transactions ranging from music cd’s, coffee, snacks, and other impulse purchases. After you see the money you could be saving by removing those small or impulse purchases out of your life, you should be motivated to apply the money to investments, building emergency funds, or even an end of the year vacation.
