Spending too much? Try this 7-day money challenge.

Bankrate.com issued a 7-day money challenge recently which caught my eye.

Here are the basics of the challenge:

Step 1: Figure out how much cash you need to cover a week’s worth of gas, groceries, entertainment, dinner on the town, breakfast at McDonald’s, books, music CDs, cosmetics, gifts — the whole gamut of casual expenses.

Step 2: Be honest. Don’t deliberately overestimate so that you’re sure to have enough cash to get through the week.

Step 3: Set the anticipated amount aside and don’t use debit or credit cards.

If you get through the week with the cash set aside, congratulations! If you need to make a trip to the ATM, it’s OK. Review your purchases and see where you could have trimmed costs. This is about developing a mind-set where you seriously consider daily cash expenditures. It can lead to more money in your savings account and long-term financial plans that stay on track.

I know that my biggest budget buster is groceries, so I’m going to try this challenge specifically to see how I do on grocery spending.  I’ll post an update on my progress next week.

In the meantime, Bankrate.com posted an update on the challenge, including readers’ emails which contained many tips and advice on saving money.

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