Where did all the money go? Track it to find out
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Tracking is empowering
About five years ago, my wonderful wife had me set up a monthly expenditure spreadsheet. She put me in charge of the bills, and we set ourselves a monthly allowance.

When I began entering the categorized Quicken data into the spreadsheet at the end of each month, it was really clear where all the money was going.

These days, I still have my allowance, but some months I don't spend it all because I stop to think how every purchase will affect my available funds. Once in a while I go over, but it is always intentional and with purpose.

I would recommend that everyone try some kind of tracking system. It is an empowering feeling to have this knowledge.
-- Felix

Find avoidable costs
About three years ago, I employed a system similar to the one you wrote about in the seven-day money challenge.

I input all my check and debit card transactions in MS Money. One day I ran a report and was shocked to see where all my money went! I looked at costs I couldn't avoid -- rent, insurance, utilities and taxes. Also there were some variables such as auto maintenance, medical/Rx that couldn't be avoided. But the vast majority of costs were avoidable!

Being a single guy, I noticed a significant portion was going to dining out: For example, lunch at work, dinner with friends, drinking on the weekends, breakfast on the run, etc. So I started buying more groceries, eating a healthy breakfast (oatmeal, fruit and yogurt) and putting frozen food out to thaw for dinner. Also, I either drive home for lunch (four-mile commute) or brown bag it.

The result: By the next paycheck I would deposit whatever excess I had, usually in the $100 to $150 range, into a savings account. Now I'm putting away $300-$800 every two weeks! I also do a pre-deposit on my paycheck to encourage additional savings.

I have to admit I've become a bit obsessive when it comes to being frugal. However I already know I'm FAR ahead of my friends in terms of savings, retirement and overall financial health.
-- E.J.

Exceed savings goals
I started on this kind of plan about two months ago. I have an ample paycheck, but just didn't seem like I could put away the $1,000 a month I had budgeted. I came up short every month. That's when I started tracking my expenses in a simple Excel spreadsheet. Within four weeks I was back on track, and was able to exceed my goals while paying down credit card debt to almost zero. Now I'm able to put aside $1,500 to $2,000 a month, and am almost down to zero on my credit card balances.
-- Drew W.