At a corporate retirement savings plan presentation I attended, the investment firm running the plan sent in a bunch of guys dressed in three-piece suits. These officials droned on about various investments and strategies. The company's benefits manager expressed disappointment to me about how few employees attended these presentations and participated in the retirement savings plan. The reason why was pretty clear to me - many people in the company like most Americans were living month-to-month financially and couldn't participate in the plan until they cut their spending.

Telling people to reduce their spending is like telling an overweight person to go on a diet. Easier said than done. Diets and living within a budget seem dreadful to most of us. That's why I don't like diets or budgets.

You don't need to track where you spend every one of your dollars. What you should do, however, is get out your checkbook register, credit card statement and anything else which will help you detail where you spend your money in a typical month. Knowing where your money has been going should help you to identify some fat to cut. Don't overlook your cash purchases such as those $3 daily lattes and $7 lunches out.

If you've had a propensity to spend more than you should due to credit cards, then get rid of them! Instead, get yourself a VISA or MasterCard debit card, which are connected to your checking account and thus prevent you from spending money that you don't have.

If you have consumer debt, pay that off before you begin saving. Make your saving automatic - such as through payroll deduction with your employer. That way, you're free to spend what's leftover and need not drive yourself and other family members crazy tracking every expenditure.

Here are some other ideas to cut your spending and make your money stretch further:

• Observe friends and relatives who are thrifty and try learning some of their better spending habits. Don't shop with people who share your spending problems.
  
• Don't waste money on brand names. Thanks to advertising costs, brand name products are frequently more expensive than comparable quality but less well-known brands.
  
• Get your money back when products and services aren't up to snuff.
  
• Look for the best values in all that you buy. Don't assume that a more expensive product is better. You often don't get what you pay for.

And remember this - the best part of overcoming overspending isn't the long-term financial benefits - it's the peace of mind and satisfaction that comes with it.

For Sound Money, I'm Eric Tyson.

—Eric Tyson is a financial counselor, syndicated columnist and author of the best-selling books Personal Finance for Dummies and Investing for Dummies.