If you use cash most often, you probably know that it is hard to keep track of where you spend. It's so easy to spend a couple dollars here, ten dollars there, and twenty dollars later - before you know it, all you have left is an empty wallet. Keep track of where and how much you spend by keeping a small notebook with you.

To do this, write how much you spent, where, and what in some kind of notebook or a spiral bound book of notecards. This way, you can see where you spend the majority of your money, how much you're spending, and what you're frequently buying. Do this strictly for a week. It can be very revealing of your habits. You'll see that you may spend too much money in one place, or you're spending too much every week on a certain item (even small things like fast-food lunches or drinks/candy from a convenience store or vending machine). You may even be surprised how much you spend on these things - and you may consider the other, better things you could have done with that amount.

If you mostly use debit or credit cards, keep track of your expenses by keeping all of your receipts. Buy an accordion file and sort the receipts into categories - these categories could be fun things like entertainment (be specific about what kind - music, movies, DVD's, books, etc.), clothes, meals (be specific about what kind of meal) to basics like groceries, gas, and clothing. Keep track of every receipt and sort it for a week. Like with the cash-tracking notebook, do this for a week and then analyze where, what, and how much you're spending. Of course, be sure to record all debit purchases in your checkbook as well.

The notebook method works well for cash purchases because often there aren't receipts offered (like with a vending machine) or, since people don't need to record cash purchases in a checkbook, many just throw them away. With card purchases, most people need to keep the receipts, so using the accordion file is a great way to keep track.

Once you've recognized your spending habits, you'll see where you could save money or how you could use that money more effectively. Instead of buying lunch everyday at a fast-food restaurant, you could pack your own and use that money to pay off credit card debt or to just use it on something more worthwhile, even if it's just a purchase you'd enjoy more.

Decide how you'd like your spending habits to change and adjust your budget. To help you stay true to your plan and keep track of your spending, try using the envelope system of budgeting. To do this, determine how much you want to spend on certain aspects of your budget - like groceries, eating out, clothing, entertainment, gas, etc. Once you've decided how much you will spend on each, withdraw that amount in cash and place it in an envelope designated for each aspect (i.e. a grocery envelope, a clothing envelope, etc.). When you go to do the shopping, take the envelope of cash for that particular place and no other form of payment. This way, once the designated amount of cash is gone, you can't spend any more and you'll stick to your budget. This is a great tool for anyone to use to feel more in charge of their spending.

Keeping track of your spending requires just a little focus, using some simple tips, getting rid of some habits, and creating some new ones. By understanding where your money is going, you will be able to control it better and save for the things that are truly important.