To save money you need to know how you spend your money. Creating a budget does give you a rough idea of what you spend at the end of each week or month but it doesn't include impulse purchases and other expenses. The best way to keep track of your spending therefore is to have a spending diary. You record every purchase you make and at the end of the month find out how you wasted your money and hopefully try to avoid it the next month. It might save you some money.