this is how i go about it.

i wrote this quickly, so it's jumbled, though you get the idea.

figure out how much you cost to exist per day by creating a list and adding up everything you pay out for one month, then x12 for the year. add anything you payout, which isn't part of the monthly, to the yearly, then divide by 365.

keep track of anything you payout daily, which is not part of the list and track this, given it will fluctuate.

for example, you cost 40 per day, drive this down to 37, then 35 and so on.

so the dailies would look something like this, $48, $40, $45, $61. question anything above $40, asking, did i need to spend that and as you become more frugal, expect the $40 to become lower.

now look look over the list for alternates in what you pay out, cheaper gas, insurance, less expensive groceries, less driving, buying certain things in bulk, etc..

once you get the hang of it, you've derived a budget and the trick is to look for cost effective methods and stick to it.

you'll find out quick where the money is going, especially if it's wasted, impulse buying, that sort of thing.

hope this helps..

EDIT: also, once you've driven the $40, say to $37, readjust your yearly expenses, so $37 becomes the new daily, rinse, wash, repeat..