A frugal lifestyle shines through in the simple tasks performed in the home. Whether it's cooking supper or checking email - virtually every household activity can be enhanced by thriftiness.

If you've spent the last month tracking your spending and budgeting out each expense, hopefully you've spotted a few of your biggest money blunders and are taking the steps to fix them. But on the other hand, with some budgets it's hard to tell exactly where you've gone wrong. Everything looks like a necessity, and yet it's all too expensive!

We all need a place to live, food to eat and clothes to wear. We don't, however, need mansions, gourmet food and the latest fashions. Just because something is a necessity doesn't mean it's impossible to cut back on the expense. In the next section, we'll discuss specific ways to save on necessities around the house.

Luxuries, however, can be more difficult to recognise. Many things that are typically considered necessities today did not even exist 100 years ago: the telly, mobiles, the Internet, etc. These and similar items may be fun to have, but they aren't necessarily requirements for living.

Now, we aren't suggesting you go home and toss everything out except the wardrobe and the fridge! That simply isn't realistic. But if you're struggling financially and you're having trouble discerning between needs and wants, skip ahead to this month's Frugal Year Challenge for help.