Having learnt the hard way last year - and wishing I had learnt it many years prior.  No matter what your situation is, you should do a budget and regularly review it - so you know your actual financial situation, rather than like me just living in denial that it will improve one day.  

By doing the exercise, yes it did depress us for a little while - but like most things in life - if you let it get your down, then it has won.  You have a choice.  So a week later, revisited it and worked out how we could overcome it.  Some of the things for us, was...

• we love our NZ Sav Blanc wine, but put a stop to it mid week (helped $ wise but also for health and weight)
• Realised we needed to get rid (sell) of a couple of our luxury items.  (sad when it happened, but a month later we are happy we have done it and don't miss them as much as we thought we would do)
• I was always in the habit of giving stuff away.  But decided to get onto ebay and start selling (we have been a bit slow on this but will get into this soon - as I cant get over the giving yet)
• reviewed our super / insurance policies.  By changing some around we have saved quite a few hundred each year.  It is a pain doing this research, and waiting on the annoying phone.  But the pain factor vs reward was brilliant.  (Partner did this one)
• simple things - turning power / lights off when not needed.  Using cold water, rather than hot when not necessary, taking lunch most days (which is just a case of saving left overs (cooking a little more) and doing the healthy lunch thing - tuna and crackers; 
• cut back spoiling our son. less hot wheels - not necessary to get one everytime he comes with you to the shops.
• reviewing your pay and asking for a raise
• Thanks to Angie - see her comment below.  If looking for house decorations, you have to look no further than garage sales

Have you done a budget recently?  what have you done to reduce your costs in your house?