Chatting at Starbucks with friends recently, I discovered that we have several things in common: we've got the winter blues, Heath Ledger deserves an Oscar, and our top New Year's Resolution is to get our finances in order. The irony of discussing this over $4 lattés was lost on us.

(But we're all moms of toddlers, so we totally deserve this small hypocrisy)

The answer is simple: spend less. The action plan?

1. Pick a budget and stick to it

If you aren't already tracking your expenditures, you need to start now. A simple spreadsheet dividing up your non-negotiables (rent/mortgage, utilities, groceries) and discretionary items takes minutes to set up. You'll need several months of data so that your spending averages will be reflected, not monthly one-offs like Christmas presents or new tires for your car.

Once you've collected your numbers, choose realistic targets and stick to them religiously. You can find many budgeting tools online. This article from MSNBC.com can get you started.

2. Reduce your obvious costs

Give yourself a small monthly allowance in cash as flex money for eating out or shopping. Paying with plastic gives a false sense of how much you've used up. Once it's gone, it's gone.

Resist the urge to buy something you really can't afford. The retailers are desperate for your business and we're tempted to pick up new furniture or vehicles at crazy low prices. The deferred payment plans (Do Not Pay Until 2020) bank on you eventually screwing up and paying their premium financing charges. If you can't afford it now, don't bet that you will be ready for the bill when it comes due.

3. Reduce your hidden costs

With interest rates falling, this might be a good time to consider refinancing some of your major debt: mortgage, car payment, student loans, etc. Talk to your bank about your options, but make sure you are aware of the change fees and if the upfront costs are worth it. For that matter, now may be a good time to consider buying a house or condo. Check with a local realtor about the market in your area. In the US, mortgage interest is tax-deductible.

Check your utility bills. If you are serviced by a private company, you may be able to press for lower rates. We recently saved over $1/gallon for heating gas simply by threatening to switch providers. Consider switching to a VOIP phone service especially if you make a lot of long distance calls, and ask your cellular provider about cheaper service packages. In this weak economy, companies will do anything to hold on to your business.

Bank and credit card fees often fly below your radar. Look at your account services and rewards programs. Do you really need unlimited check(cheque)-writing or gift cards for electronics? You can ask for lowered interest rates in lieu of rewards or services.

4. Go green

Coupon-clip your way into green technologies. From high efficiency light bulbs to front-loading washers and LCD TVs, you'll save utility costs and the environment at the same time. Many local governments offer incentive programs for green upgrades.

Cook and bake from scratch. Not only is it healthier and less expensive, you are also no longer financially supporting companies that use chemicals in manufacturing and preparation. Buy only those fruits and veggies that are in season; buy others from the frozen section. They are picked ripe and flash-frozen which seals in the vitamins and minerals better than 2-week old lettuce sitting in your grocer's warehouse. On that note, increase your vegetarian diet by making 3 or more of your weekly dinners meatless.

Find better ways to clean your house. Safer for your family and pets, substantial grocery bill savings for you.

5. Sit down with a financial advisor

A professional can help you identify further areas where you can save, either with tax exemptions, cost reduction or other long-term financial strategies. Be picky about who you ask for advice; many so-called advisors will try to sell you insurance or stock market products you don't need. It might be a good idea to ask a wise family friend first for some pointers - they really do have your best interests at heart.

Do your homework. There are literally hundreds of ways you can save money and not change your lifestyle drastically. I, for one, will be bringing in my stainless steel travel mug to Starbucks next time to save a little extra... but only if I haven't already spent my allowance.

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by Claire Rahn