Make a list of all outgoing bills, grocery costs, and misc. spending
Step2
Pick at least 3 bills that are not absolutely necessary, for example: during the summer months if you are BBQ'ing a lot outside, then you really do not need cable or satellite television. Does your 13 year old really need their own cell phone and internet connection? If you have a cell phone that basically covers all of your local and long distance needs, then get rid of that land line. Especially with the fees and taxes that the phone company charges!
Step3
Review all expenses that are occurred when not at home: coffee, snacks, cigarettes, drinks, meals, etc. Instead of 2 coffees per day, make it 2 coffees per week. Slowly cut back on each item that is costing $10 a week or more. Pack children's lunches instead of paying for school lunches. If they are resistant, then let them know that on Mondays and Fridays you will be happy to let them buy lunch at school.