The best-laid budget plans can fail if you don't track your expenses properly. Here's how to do it right.

You sat down and came up with a manageable monthly budget. At the end of the month, you're supposed to have a few hundred dollars left over. But, alas...the bank account isn't growing! What's up?

It's not easy to stick to a budget on the honors system. It takes a real effort to track your income and expenses, and if you don't, the small items will add up faster than you think. So put down that latte, and learn what you can do about it.

Cash is king

One way to keep tabs on your spending is to do it all in cash. Cut up your credit cards, cash your paycheck, and pay for everything in cold, hard dollars.

You must adhere to a strict budget, because you won't be able to buy anything once the money runs out. Every temptation must be weighed against the wad of bills in your pocket, and you're bound to walk away from lots of not-so-essential buys. Divide the money into separate stacks for rent, utilities, groceries, personal care, etc., and you'll have a clearer picture of where it all goes. This can really help fine-tune your budget.

On the downside, carrying a large amount of cash isn't secure, and the money could be earning interest in a CD or bank account until you spend it under a less cash-intensive plan.

All charge ahead

The polar opposite is to use credit cards for absolutely everything. It's easy to track every purchase on the monthly statements and, thanks to online banking systems, even in real time. Some cards give you airline miles, reward points, or cash back for every purchase, which can help you supplement the budget a bit, over time. And don't forget that your paycheck can earn interest in a savings account until the credit card bill comes due.

Money management software, like Quicken or Microsoft Money, is invaluable if you're going this route. Whichever package you choose, it'll bring your whole financial situation together in one place, balancing your debits and credits, and reporting on spending habits in great detail.

There are drawbacks to this idea: Without the hard spending limit, you might fall prey to small temptations. A soda here, a bagel there and, all of a sudden, you're staring at a much higher monthly bill than you expected. And the whole credit card plan can spell disaster if you don't pay down the balance on your cards. This is the choice for a disciplined consumer with no major credit bills already in the picture.

No time like the present

Most of us will fall in-between these extremes. Track most of your expenses electronically, and keep track of the cash outlays in labeled piles or envelopes. Whatever method you use, the important part is to just do it. If money makes the world go 'round, then tracking does the same for budgets.