From txjohn:
You're not alone, many American live paycheck to paycheck, plus spending on credit. I have a simple method which works for me.
When the paycheck comes, all bills are paid first, even if they aren't due right then. If you get paid 2 times monthly, you pay with this check EVERYTHING due over next 16 days. You MUST pay something more than minimums and MUST pay something to savings or retirment, no exceptions.
Anything left is yours to do as you want.
The problem I have noticed is the "slush fund" effect. Money and income is deposited. Bills aren't due. Money is spent often on non-essentials, then when bills are due money is gone or not enough.
Pay the bills, plus a little extra (like cc's), then pay yourself (savings/retirement), pay the Lord (if you are inclined to tithe) then spend the rest if you like.
Just don't spend first.
Okay, this is what I have been trying to do. All of it has been working for me except money to savings which is really bothering me. I am trying to find ways to cut more spending to free up money that can go to savings.
I use Quicken which is lovely because it does what my old spreadsheets used to do, and then some. I can even view what my checking account balance will be on any given day which helps me know what kind of extra money we will have for the year.
I just don't know how to spend less on existing expenses. Current March attempts to lower expense costs.
- I have started shopping at Food Outlet in an attempt to lower our $800-$1000/mo. grocery expense.
- Found a promotion code to lower our cell phone bill by 15%/mo which is ~ $23/month less.
- Return the DVR boxes, and switch to basic cable in conjunction w/adding blockbuster online. That will save us about $60-$70 a month.
- Outlined a plan yesterday to refinance one of our houses under the 'Home Affordabe Refinance' program. Current interest rate on this house is 6.5%, and hoping for a lower interest rate.
- I requested SCRA relief for all of Sean's student loans. Since it's retroactive since 10/07 that has eliminated his student loan payments until the end of the year.
- I consolidated my student loans, and will request forbearance or deferrment once it is in full swing.
- I also sent requests for SCRA relief to all of our creditors. I am not yet sure what this is going to save us, because I have not gotten responses from the CC companies yet. But our CC debt is around $40k with interest rates ranging from 24%-30%. Hopefully, the retroactive accounting will lower the overall CC debt, and result in much lower monthly payments until Sean's active duty ends.
- I am in the process of requesting SCRA relief for our St. Louis mortgage, but that interest rate is already 6.35% so that isn't going to save us a whole lot, but I figure every bit counts.
- Our 3rd house we own out right, and plan to put it on the market in a few weeks. If a bank will provide a cash out loan in the sale that would pay off our credit cards, and our car loan. But I'm not hopeful about this.
- $800/mo in utilities for all 3 houses...can't find a way around that.
Our outgoing $ ranges from 8k-12k a month. 
I'm so tired of paying out so much money, and still being in so much debt. Any additional ideas are more than welcome! 
Well we are in a rural area. When we lived in St. Louis groceries cost us a bit less, but I thought is was just becase of the sales tax difference. But I'm not sure that 3% makes up the difference. You should share your shopping lists. hee