OK. Are you ready? Pen and paper in hand. Good - let's go!

1. Put your income at the top of the page. Include all income that comes into the household; wages, government payments, maintenance from ex-spouse, board from the kids, christmas bonues etc. Divide this by 52 weeks to arrive at a weekly income. (You can use any other period division you prefer).
2. The first 10% I'm a Christian who believes in giving back to God what is God's so I will always give the first 10% back to Him. If you don't, no probs but I would encourage you to give some of it away to others. Hold money loosely and it won't hold you!
3. The first 10% (or 2nd depending on where you're at) Is yours!!! Put it away in a savings account that charges exhorbitant fees for withdrawals. That way you're more inclined to leave it where it is until you really need it.
4. Prioritise the needs These are the essentials that you can't live without. Paying the rent/mortgage, groceries, utility bills (water, electricity). I won't include phone here because although it's necessary you have so many options of how to save with these that depending on how you're financing this now you may be able to save a lot more by changing some habits.
5. The remainder The remainder needs to be divided between all your wants. This may be a car and fuel and all the other associated costs or if you're running out on the income side it may be using public transport. The kids ballet lessons, the Sunday newspaper that gets home delivered are all great things but if you're living from day to day they may just be the things that need to be released from your financial world.