I heard this tip about living on a tight budget and I believe it is one of the key, if not the best, to having a healthy financial (and successful) life. So I wanted to share :)
The tip is to assign a destination and purpose for every dollar that you bring in. That means that you know what every dollar of your income is doing - whether it's paying bills, paying for food and gas, going towards debt, insurance or car payments, you know exactly how much is going out to whom and when. Your home should run like a business. A well oiled machine. The same way you keep track of how many hours you worked and keep track of what your employer paid you, the same way you should be zealous about that dollar you let go.
Keeping track of all your debts and expenses can be extremely challenging, but the key is to do it every day and to automate it as much as possible. Invest in a good program, like Quicken, Quickbooks or Microsoft Money and start getting a hold on every single hard earned dollar you have.