Evaluate Your Budget

• 1). Write down all recurring monthly expenses such as housing, utilities, Internet, insurance, memberships and so on to analyze each as a potential source of savings.
  
  
• 2). Go through statements to see how much is being spent on groceries, dining out and gas.
  
  
• 3). Calculate the difference between your income and the expenses plus food and gas. If there is a large difference, check statements to see where the money is going. If enough spending is optional, you may have already found your low-hanging fruit.
  
  
• 4). Decide how much of the difference between bills and income can be saved without it becoming difficult. Even $5 is a start. You will add to this seed money as you prune bills.
  
  

Examine Recurring Bills

• 1). Rethink TV providers, asking yourself whether you would notice missing channels in your package. Consider cutting the service entirely, buying an antenna and using Internet streaming services to supplement broadcast channels. Depending on your TV and computer, you might be about to watch computer broadcasts on your TV with the aid of a simple cable or Wi-Fi.
  
  
• 2). Determine if you need your phone plan. Using an Internet telephone service such as Skype might allow you to downsize without pain. Consider giving up your land line.
  
  
• 3). Decide if you can do without any memberships. For instance, do you need to use the gym's treadmill or can you walk just as well at a local park?
  
  
• 4). Compare insurance quotes online to make sure you are getting the best rates. Reevaluate your deductibles.
  
  

Spend Less on Food and Gas

• 1). Aim to cut monthly gas consumption by a certain percentage. Don't drive as often, making one trip to the store per week instead of two, trying to combine errands and planning routes that group errands in the same area.
  
  
• 2). Cut how often you eat dinner out each month. Do the same for lunch. Use instant breakfast foods instead of picking up breakfast on the way to a job.
  
  
• 3). Stock instant dinner solutions such as frozen meals to avoid stopping for takeout or ordering a pizza when you're too tired to cook.
  
  
• 4). Try to shave off a percentage of your grocery costs by, for instance, forgoing meat for one meal a week, buying dry beans instead of canned for chili and using coupons.
  
  

Bank It

• 1). Open a savings account with the best interest rates you can find while trying to avoid fees.
  
  
• 2). Total the amounts you will be saving by cutting bills and altering spending habits.
  
  
• 3). Funnel the total into the savings account, having the money deducted automatically from your current bank account or deposited directly from your paycheck so you don't have to think about it.