There was a moment of silence when I told Carlesa A. Washington, a 24-year-old recent college graduate, to drop the Internet service she gets on her cell phone.

Her bill is about $75 a month. She pays an extra $20 to access the Internet.

“You don’t need e-mail on your cell phone if you’re in debt,” I said. “What do you want more, a home or to e-mail your friends?”

“A home,” she replied.

Washington is putting up with my demands because she has volunteered to take part in the Color of Money Challenge. This is the second in a series of columns in which I’ve promised for the next year to help four people – two single women and one couple – achieve their financial New Year’s resolutions.

Carl Chandler, another challenger, wasn’t happy when I told him he couldn’t buy the PlayStation 3 he’s been coveting. It costs about $600.

Chandler works hard and no doubt deserves to have the electronic toy. But he and his wife, Tania, are on a mission to save money and get rid of their credit card debt.

“Until every penny of that debt is paid off, you can’t afford the PlayStation,” I said.

He stayed silent for more than a moment.

“You’re right,” he says.

Telling grown folks they can’t have something when they work hard every day isn’t easy. But these participants didn’t want easy anymore. Easy credit and easily giving into desires have caused financial strain and stress in their lives.

Just a few weeks into 2007, and the challengers already are changing their behaviors, although it has been hard.

“On the one hand, I feel very good because I feel like I’ve made some concrete steps and have some concrete goals,” Schleicher said. “On the other hand, it seems a bit daunting. And I’m wondering how this will impact my relationships. I mean, most of my friends have seen the article and have kind things to say. But I wonder if that will change when I tell them I can’t go out to eat because I’m on a budget. Will I be the party-pooper?”

Despite their apprehensions, the participants are following my recommendations. So far they’ve all begun to work on creating a budget.

I sent them a budget template I found for free on the Internet. To use this worksheet yourself, go to www.financialplan.about.com. Click on “Budget Successfully,” then select “Budget Worksheet.” Tailor the expense categories to meet your specific situation.

By really looking at her budget, Schleicher realized she was paying $80 a month for a gym membership she rarely used. I told her to cancel it.

“Even though I don’t use the gym membership enough and I know it’s the wise financial decision, it felt bad,” she said. “I don’t think I like admitting that I can’t afford to do all the things I’d like to do.”

Washington contacted the collection agencies that had been hounding her. One creditor agreed to accept less than she owed (mostly forgiving collection fees). That $300 debt is now paid off. Another creditor agreed to a payment plan. If she follows it, that debt will be paid off by the end of February. The third debt will take some time to settle. It has ballooned to $6,000 with interest and fees.

Her next assignment is to work out a plan to pay the credit card debt before year-end, something Washington can do because she is living at home and not paying rent.

All the participants have taken steps to automatically save something from each paycheck. You’ve got to put savings before your household bills, otherwise there may not be anything left to put aside. Save something, even if it’s just $20. Schleicher is saving every penny of a recent raise.

Everyone also has been keeping a spending journal. They write down on a daily basis the amount of every purchase. All the challengers have said the journal has resulted in their spending less, because they pay closer attention to what they buy.

“We are really getting down with this whole challenge thing, and doing our best to stick to the goals we laid out,” Carl Chandler said.

The one thing they all say is now they feel in control.

“I have clarity,” Washington said. “I don’t feel overwhelmed anymore.”