Save Money! Maintain a Detailed Spending Log

Today's frugal living tip doesn't deal with one particular method of saving money. Instead I want to introduce a strategy you can use to help control your overall spending habits.

It's a simple concept really. The first step is to get yourself a pocket-sized notepad and pencil, and, beginning today, record every penny you spend and where you spent it. Whether it is your mortgage payment, or a quarter dropped in a gumball machine, write it down! Though admittedly somewhat tedious, if you give this strategy a try, I think you will find the small inconvenience will be heavily outweighed by what you learn about just where your money goes. At the end of the day, transfer the data you've gathered to a spreadsheet to allow for easier record keeping over a long period of time.

The benefits of this record keeping are myriad:

First and foremost it acts as an impulse check. That chocolate bar that costs "just a dollar" will seem less necessary when you are forced to pull out your pencil and paper and record the purchase.

Secondly, it can act as a pie chart for your spending habits. If you want to know how much of your money is going to wants and how much to needs you only have to look back through your spreadsheet and see just how much money you've been allotting to each category.