The easiest way to make some extra money is to start with a record of what you are actually spending. For one month, keep a little journal with every expense you pay. It's critical that you log every penny you spend, so keep your journal with you when you're out of the house. Do not rely on your memory! There will be some fixed expenses like rent, mortgages and utilities, but what we're looking for are the other expenses: transportation, meals, entertainment, and those impulse buys.

At the end of the month, break down the expenditures into categories and tally them. Remember to include any credit and debit card purchases. How much did you spend in each category? Are you surprised at how much went to magazines, newspapers and books? How about snacks and lunches? Were the taxi tabs shocking?

Once you have a concrete list of what you spend, you can adjust your spending habits to reflect what you actually have to spend rather than spending money you don't have. There's no need to panic! You won't have to give up all the pleasures you enjoy, you just have to readjust.

Let's take a look at your list. If you discover that you buy the newspaper from your local vendor every day, you can have the newspaper delivered to your home at a savings. The same holds true for magazines. Did you know that magazines cost significantly less if you subscribe to them rather than buying them at the newsstand or bookstore? You can get your fill of books by going to the library and reading them for free.

Are treats, beverages and fast food lunches your weakness? Are you surprised at how much this is costing? You can still have your daily treat and save money. Buy your favorite treat in bulk and bring it with you when you head to work or school. Purchasing a thermos and filling it with coffee (or your beverage of choice) will yield significant savings if you are purchasing them retail every day. Preparing your lunch at home and packing it along will not only save you money, but you'll most likely eat better, too.

Was transportation a big expense? Sometimes when we're running late we take that cab ride. Do that several times a month and it adds up quickly! Public transportation is your friend. It's good for the environment and your pocketbook.

Are impulse buys the largest category in your journal? Just knowing how much you are spending on unplanned purchases is often enough to make some positive change. Once you know the dress shop on the corner or your favorite music store is getting a fair sum of your money every month, you can make a decision about whether these purchases serve you. If it's not too much of a stretch, you could even change your shopping habits and take a look at buying these things gently used, rather than new.

If you're like most modern people, you will discover that you are spending money unaware. The little expenses do really add up over the course of a month. Altering your purchasing habits can really add up, too. You'll be amazed at how much more money you will have once you know how you spend.

Learn more about this author, Deborah Smith.
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