Saving money doesn't have to be overwhelming. People can make a positive change in their lives by starting small and setting reasonable goals for themselves based on realistic income and expenditures. Reviewing the past year's expenses can help one set goals for the next year and understand where to adjust spending to save more.

When creating a checklist of expenses, consider the fixed bills that are paid every month, such as mortgage or rent, utilities, auto insurance, day care, Internet and cellphone, as well as ongoing variable expenses like groceries and gasoline. Also keep in mind purchases such as coffee, meals out, snacks, DVDs, books, movies and other expenses.

Not sure what's on the list or how much is actually being spent? Review monthly bank and credit card statements. Many online banks already offer category summaries of debit card purchases to help their customers gather this information.

For those with an active home equity line of credit, be sure to review these records for any repeat expenses for the next year.

Pay close attention to those expenses that occur only once or twice a year or even periodically: expenses such as car maintenance, vacations, birthdays, holidays and membership dues. These often-overlooked expenses can be the critical missing link when creating a checklist that really works.

When the list is laid out, take a hard and honest look at where the money is going. Is more money being spent than anticipated? What areas can be cut back in an effort to start saving more money?

Evaluate what anticipated changes could happen over the new year, such as job change, relocation, new baby, children starting private school, children going off to college, taking care of parents or a home remodeling project. Consider how these changes could impact the budget.

Start with a month-by-month approach that's easy to follow and easy to update. First, look at how much money is coming in each month versus how much is being spent. If expenses far outweigh income, this is the time to make adjustments.

Using debit cards can be a great way to track the total amount spent each month. Debit cards provide a record of transactions almost instantly from the point of purchase, making it easy to see where the money is going.

Remember, for those using a debit card versus cash or a check, be sure to regularly review the statement or track spending daily to remain conscious of what is spent, instead of slipping into autopilot spending.

Reviewing this information is not always easy but is a huge step toward greater savings for the future. After reviewing the list of last year's expenses, ask: Was spending in line with personal values, goals and priorities? What changes can be made to get closer to set goals?

Plan for savings. Ideally, 5 percent to 10 percent of income is the target amount to save. However, it's best to start small and set a nominal amount per week or per month and make sure that amount stays in the savings. If too much is set aside with great intentions and then is pulled out because of an ineffectively planned budget, it can erode confidence in the ability to save.

Tracking daily spending helps consumers stay more aware of where they stand financially at all times.

Also, remember that there are always choices. For those low on funds, remember that it's only temporary. During those times, avoid temptation spots like the mall or favorite shopping websites.

And finally, set aside some "mad money" for those times when a little break is needed, but not so much that it breaks the budget.

This story provided by North American Precis Syndicate Inc.