I would start out by making two columns, one for fixed expenses and one for discretionary expenses. Fixed expenses would be things like taxes, housing, health insurance, auto insurance, auto payment, etc. In theory, some of those things could be lowered (find a different insurance company, buy a less expensive car, etc.) but for all intents and purposes, fixed expenses are those that are more difficult to alter easily (e.g. it is harder to go sell your car and get a less expensive one than it is to get a less expensive cable bill). Discretionary expenses are things like groceries, electricity, cable, phone, etc. that can be adjusted relatively easily. Start by focusing on the discretionary expenses - can you get a less expensive cell phone plan? Can you cut the cord instead of paying for cable/satellite? Can you cit back some on your groceries? Can you turn the A/C an use fans? Etc. Cutting/limiting expenses may require certain "sacrifices" and may involve making some relatively tough decisions, but it is something that must be done to ensure that you are living within your means and not spending too much on a consistent basis. Hope that helps and good luck.
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