Living on a budget is a lot like living on a diet. If you make it too difficult and cut out everything all at once then you are unlikely to stick to the plan. The first few months (and sometimes years) of budgeting take trial and error. Jump in with both feet, but be sure to take a lifevest incase you need it.
1. Plan entertainment into you budget. If you have to cut your spending tight then you might consider saving a few dollars each day from another area to put into a fund for a night at the movies. Even better, if you choose to rent a movie and have at home movie night then you can splurge once a week.
2. Fresh fruit and vegetables are very expensive. You can get the same healthy benefits from the frozen varieties as a fraction of the cost. If you must have fresh then stick with in-season produce from you local farmer's market.
3. Research your region. There are a number of festivals and events (particularly this time of the year) that will offer hours and days of free entertainment. Be sure to get a group of friends to go along so that you can all share in the gas expense. Pack a picnic to really cut down on money that needs to be spent.
4. Open your home. Instead of meeting friends for cocktails at the local club you could invite them to hang out at your home. The same goes for having families over. Set up game areas for the kids and adults and invite everyone to bring their favorite appetizer or finger foods.
5. Cut back heavier on the things that you won't miss (extra phone, cable or membership to the club) so that you can put aside a little extra towards the things that you can't live without (fresh produce, movie night or that weekly housecleaning).
Living on a budget is going to require some changes. You still need to give yourself rewards and indulgences or you might find that you cheat more than you stay on the plan that you have set.