Some types of expenses are more easily trimmed than others. For example, you have to pay your mortgage and your nanny, but you can probably go without the new Barenaked Ladies CD. At least for now. Wherever possible, seek to cut back before deciding you have no other choice but to cut out.

Once you have gotten into the rhythm of living your life in accordance with a budget, you will notice all kinds of spin-off effects. In the shorter term, that feeling of panic as the bills pile up on the kitchen counter will diminish. And in the longer term, you'll find yourself in a much better position to plan for a more secure financial future.