The authors of Your Money or Your Life admonish readers to “keep track of every cent that comes into or goes out of your life.” This is the best way to become conscious of how money actually comes and goes in your life as opposed to how you think it comes and goes…This is the step that somehow makes the biggest impact.

It doesn’t matter how you track your spending — the most important thing is to do it.

* You can use a cash notebook.
* You can use an online tool like Wesabe, Mint, or Quicken Online.
* You can use a piece of software like Quicken or Microsoft Money.

Whichever method you choose, stick with it. Make it a habit. Don’t fudge the numbers. Record your transactions as soon as possible. Most of all, don’t judge yourself. Tracking your spending is an exercise in data collection; it’s not the appropriate time to change your habits.