It's good to see that I'm not the only one wrapping my head around this question, and I've been approaching this on several levels. Take the car for example - ever since I've had a driver's license I've had a car. Since I live in the city it was not a necessity but a mere luxury. One that cost us 600€ a year in taxes and insurance, plus another 480€ for the garage. That's almost 1,100€ a year without even driving it a single mile. I was very hesitant to sell it since I kept telling myself that it's a very convenient way to go grocery shopping, that I need it to go visit friends that live far outside of town or in another city, etc. This summer, my wife and I have decided to try and see if we actually could make it without a car for two months, and guess what: we could and we did. Consequently, we've sold it a month ago.

Other strategies involve avoiding to eat out as often as possible, which also includes taking sandwiches to work instead of buying them at Subways or the local sandwich place. We're also saving money by riding the bycicle instead of taking the bus, subway, etc., even now during winter time. That saves us another 100€ per month. Then there's selling useless crap - go through your stuff once a year and sell everything that you haven't seen, used, needed, or even remebered you had during the last year. And I also found the following to be very effective: never go grocery shopping without a shopping list. We tend to be way too impulsive and buy way too much crap without a shopping list. Mobile phone is another issue - I use a five year old Nokia and got a huge discount on my plan.

There tons of other possibilities, and just like everything else listed in this thread so far, it's all very specific. Not everybody will be able to do without a car, or do everything by motorcycle and bycicle, or to take food to work, save electricity, etc. We try not to be cheap, we go out regularly, but we also try to avoid pointless spending.

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"Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting GERONIMO!"