How I did it:
I started by making daily notes on what I was spending, however small... a chocolate bar here a there soon mount up! In all honesty it can be quite mundane but you'll see the importance once you've monitored your first month and you realise how much you could save if you didn't buy those unnecessary items.

I managed the tracking for about three months before realising which areas of spending I really needed to cut back. At this stage it began to get irritating, I wasn't at all sure how I would manage to control my lavish spending habits.

I have to confess that there is no definite answer to this problem, but if I tell you what made me change my ways it might just help you think of something similar.

Shock value. It's what I needed. Realising I would be going to University in the coming year brought to my attention how much I needed to pay serious attention to my spending habits. Knowing this made me think immediately and I started buying only the essentials. It comes down to will power, and saying "no" to the cinema trip straight after a meal out and of course "no" to those yummy chocolate bars. In the former, why not enjoy a meal out one night and some nights later do the cinema, this way you spread out your activities and your money goes further.

Cutting down is one thing, cutting back is another. There are things in life that you don't really need. I'm buying a laptop, I could argue that I don't really need one but it's something I had to budget for. Initially I thought I'd go all out, find the best I could for around £500... but then I thought again, and realised I didn't need the latest and greatest. £325 - the new price for my laptop. I made the sacrifice and in another few months or so, I won't even know what I have missed out on.

Lessons & tips:
In brief:

- Monitor your spending habits (don't make changes at the start of your venture.)

- Decide what the essentials are in your life.

- Learn to say "no" and if you've got an active social life, spread out those expensive nights out.

- Cut back when it comes to being larger items - you don't need that 50" TV screen, a 20" or less is more than sufficient.

- Learn that if you really want something, it's okay to go ahead and buy it, but think about this carefully, and budget for expensive items.

Sep 20, 2008, 06:53AM PDT | 1 comment | 4 cheers