COLORADO SPRINGS, COLO. -- When times are tough, it's always a good idea to keep track of where your money goes. The best way to do this is to start getting "wise" with your paycheck, says Money Coach Bill Stanley. "Wise" means showing good judgment.  We all need to show good judgment about our money.

First, we need to figure out how much money is available to spend.

Take your salary and subtract taxes and all other deductions from the paycheck.  Put aside at least 10% of your total salary to save; this may be done automatically if you have a 401(k) plan or you may have to put it in a savings account after you receive it.

The starting point is the spending money available for one month.  Easy if you get paid monthly or twice a month; you must do the math if you get paid every two weeks; you must estimate if your paycheck is based on small business income or commissions.

Next, we put the money into the following categories:
1) Necessities (food, shelter, transportation, basic clothing)
2) Discretionary (eating out or a movie)
3) Luxury (manicures, massages, playing golf, video games)
4) Waste (clothes you never wear, magazines you never read; cell phone ring tones - we all know about the "waste" category.)

Don't forget bills that do not come monthly - auto registration, storm water tax.

Don't forget little things - daily Starbucks; eating lunch at work; parking money.

"Get real" about buying with a credit card - if you buy a gallon of gas for $2.50 and put it on a credit card and pay only the minimum with a high monthly interest rate, then it will take a minimum of six years to pay it off - the end price will be $9.30/gallon.  (At this moment, ask yourself what kind of idiot would pay $9.30 for a gallon of gasoline - go to the mirror to find out and then resume your budgeting.)

Be careful about the spending categories.  A Target or Wal-Mart receipt might include groceries, cleaning items, tires, clothes, home improvement items.

Some guidelines:
- 36% - average housing (mortgage, insurance, tax, utilities)
- 12-15% - transportation - includes price of the car
- Groceries - average per adult - $150/month.  No family is average but if there are two of you and the grocery bill is $600/month, you should know you are spending a lot.

Suggestions:
1) Keep track of every penny spent for two months.  Use a little notebook as well as checks and financial statements.
2) "Go cash" - only use cash when you buy something.

Remember, a list of your expenses shows you where each dollar goes.  Once you know this, you can determine whether your spending is "wise" or not.

Bill Stanley & Money Matters airs every Tuesday on FOX 21 Morning News. Contact Bill by email at moneycoachbill@aol.com