CredAbility counselors give their clients a pocket tracker to record their expenses, but a small notebook works just as well. Writing down where the dollars go for 30 days may help you find hidden areas where money can be saved.
"Most people are spending more than they think they are," says Glass. "Often, they are using credit cards and that's unseen money spent."
For those who either forget to write it down or just find the process tedious, Glass has an alternative suggestion.
Open an additional checking account for discretionary spending on expenses such as gas and dining out, and use the corresponding debit card to keep track of what you spend on wants versus needs. Keep your main checking account for rent or mortgage, utilities, insurance, groceries and transportation.
"That not only keeps your spending to a certain limit, but you can also see where the money might be leaking from your budget by looking at your statement," says Glass.