1. Track your money. I use Mint.com for managing my finances. Mint lets you track your spending habits, create spending categories and budgets. If you use Mint, all of your previous transactions can be imported into their software for easy tracking.

2. Spend less. Look at your budget and see what you can cut back. Is it the $5 latte? The $6 lunch at work? $20 at the movies? Look for simple every day ways to save. Instead of buying lunch at work, bring one with you. Instead of going out to the movies stop at the video store and spend time with friends and family watching it at home.

3. Reduce your grocery bill. Start shopping at discount stores like Walmart or Costco. Many times the unit price on food is cheaper when you buy in bulk rather then the traditional package. Start watching the newspaper for coupons and deals. Buy generic medicine rather then the name brand. Most generics have the same active ingredients as the name brand.

4. Reduce your energy bill. Try turning the thermostat up 3-5 degrees this summer. Also make sure your house has proper attic insulation and that your windows/doors are sealed against drafts. Run your major appliances at night when energy is cheaper to deliver. You might also try using oscillating fans to cool your home rather then turning the AC on.

5. Pay off your debts. Dont just make the minimum payment on your credit card bill. The economy is not going to get better for awhile. Now is the time to pay off your credit cards and auto loans. Focus on saving money each month with a goal to have at least 6 months of your salary in savings.