The U.S. economy, needless to say, is in a danger zone. With Wall Street crashing combined with rising numbers of foreclosures as well as increasingly higher unemployment rates, if you haven’t been living within your means its time to get started now. Here are 7 guidelines.

(I will warn you that it will not be easy; but if you make this your goal for the next few weeks, you WILL see results! Start slowly and you’ll be fine.)

1.     Calculate your total income (excluding wealth) as well as tally your bills.

Unless you have all of your bills nicely organized online, this will take about 30 minutes to 1 hour. Trust me, it is worth every minute you spend doing this! It will not only help you keep track of your expenses but will also help you visually grasp exactly where your hard earned money is going each month.

2.     Keep old receipts to see where your money is being spent.  Always keep track of credit card purchases on paper and online.

Start looking at old receipts beginning from last week. If most of your money is being spent at the grocery store, try buying in bulk. Costco is my best friend these days! I find frozen vegetables and snacks are great things to buy in bulk! If you are looking for great candy bags for Trick-or-Treators, Costco has plenty ranging from $10-$20! Or try the 99 cents store!

At the end of each month you can print out your online credit card expenses and attach them to your credit card bills. An extra organizational tip: You can buy a 99 cent binder and make dividers with spare paper to make it easier to keep track of your credit card purchases. 

3.     Dedicate a portion of your money to mandatory savings. Do NOT take out unnecessary loans.

Try saving 5% of your income at first. Then after two weeks, try saving 10%. Increase it in small increments every two weeks and make it a MANDATORY rule that you will NOT touch your savings unless absolutely necessary. 

4.     When shopping, use CASH which limits your spending. Buy things you NEED first, then things you want.

For those of you who are consumer addicts like me, this tip works miracles! If you know that you are going to be going to a mall or any other tempting place, leave your credit cards at home. This stops any impulsive purchases.

Another helpful tip when shopping: Make a list of things you NEED (i.e. toilet paper, soap, shampoo, conditioner, water, paper towels, etc). For now, don’t make a list of things you WANT because then it will be a constant reminder as well as temptation to purchase them. If you make a certain amount of separate savings (which would be EXCESS money) an additional goal, you can purchase one or two things you WANT to reward yourself. 

5.     Stay away from tempting places (i.e. malls, shoe stores, jewelry shops, electronic shops, etc.)

By following this tip, you can also save money on gas! And for those who are bored at work and on-line shop, LEAVE YOUR CREDIT CARDS AT HOME! Or try freezing them in a block of ice.

6.     Make note of FREE, LOCAL activities offered such as plays, museums, beaches, free concerts or great hiking locations.

This tip is for those who can’t afford $69 + parking, food and beverage for a magical day at Disneyland. These activities not only save you money on gas, but also include great bonding time with your family! You can find these types of activities in your local newspapers. Or if you want to stay in, visit your family on the weekends.

7.     Eat out less, COOK at HOME.

Cooking at home not only saves you money, but is generally healthier as well. There are plenty of articles around the internet that are great resources for how to prepare your own healthy meals on a budget.

Follow these tips and you’ll be on your way to living within your means in no time. Living frugally is not only a good decision during times of recession when cash is tight, but during good economic times as well. After all, it was living above our means that got us into this mess in the first place.