Many of the economic “green shoots” that have been reported in the media lately have been in the form of stronger-than-expected profits for many companies.

Although this is encouraging, the primary reason for most of these results has been aggressive cost-cutting measures, not increasing revenue. In most cases, these companies have accomplished this by eliminating employees or decreasing their hours. This, of course, has implications for the average American family. In a time when many household incomes are decreasing, spending has been following a similar downward trend. Although most people know they should consume less when they bring in less income, a very small percentage actually have a written plan for their spending. Although a plan is commonly referred to as a budget, referring to it as a spending plan removes some of the negative connotations associated with the “b” word.

Begin with your payments that are due at the same time every year. These would include amounts such as auto registration, taxes and insurance. You may owe slightly less or more each year, but looking back to see what you paid in 2009 can give you a good estimate. Also, take a look at any subscriptions and note when they are coming due in 2010. Make a decision if each one fits into your spending plan for this coming year. This can keep you from renewing that magazine you barely cracked open in 2009. Remember, some of these automatically renew by charging your credit card unless you call to cancel.

You can also analyze your monthly bills by looking at the previous 12 months. Even if you do not have all your statements, there is a record of these transactions if you know where to look. Your bank account is a good place to start. Many online banking services only let you go back 90 days, but do not hesitate to contact your bank for additional copies of your statements. You can also gain online access to many of your monthly bills on their respective Web sites.

Above and beyond your monthly bills, discretionary items are very important to analyze because they can be the place where most “leaks” in your spending occur. The easiest way to see how much you spend in this area is to look at ATM withdrawals and credit card purchases, even if you pay them off every month. Cash and small, frequent credit card purchases for impulse items add up quickly. If we are honest, this is an area where nearly all of us can improve our habits.

Plan each month of 2010

Now you can begin to map out 2010. Get a blank calendar or a spreadsheet to plan your spending throughout the year. As each month approaches, you can document how well you planned for the month. Things will not be perfect, and there will always be some unexpected expenses. Even if your plan has a few flaws, however, it is better than having no plan at all. Also, don’t be discouraged if you were not well-organized when you started to gather your information from 2009. It will get easier every year.