Cutting Costs - When There's Nothing Left

I've been really hard on myself lately about my PF progress. I spent the last year as a spendthrift, after all. Even though I'm back to my more frugal ways, after reading and taking to heart a lot of what Jacob at Early Retirement Extreme has to say, I'm even more determined to squirrel away more of my income. So I took to my budget, red pen in-hand, desperately trying to find an opportunity to cut back on something.

Our largest expense is rent. The number ($850/person) is a true horror to behold, especially since not 2 years ago I used to spend only $500/month when I had more roommates. Meanwhile, my income is holding steady at $45k gross, which yields a little over $33k net (after federal and state taxes and a meager 3% 401k contribution), so I'm not getting any richer with this setup. We live in a 2-bedroom apartment now, when all we really need is less than or equal to 1 bedroom, so I perused craigslist with visions of a relatively inexpensive studio apartment in or near the city. I couldn't find anything at a reasonable price point that didn't require 2 additional roommates, or a 30 minute trip by car. Turns out our insanely expensive unit is actually quite a steal in this part of town. Until I can live the dream in a Tiny Tumbleweed house, looks like I'll have to make do with this place.

So I moved onward, looking for some other fixed cost to cut, but besides the Netflix subscription we just signed up for (it's winter in MA - I'm sure I'll get my money's worth), I couldn't find anything. Here's a list of things we already do without:

1. Car (and therefore, no car insurance, gas, etc.);
2. Cable television;
3. Cable internet (we use dryloop DSL);
4. Landline phone;
5. Gym membership; and
6. Haircuts, apparently - similarly, I do all my own bodily upkeep, including my nails.

The fees I do pay monthly are (i) an unlimited train/bus pass, which is less than $60/month and (ii) my cell phone, which is $45. No, there's no extraneous monthly fee to cut (except Netflix, but we just signed up, and already we've watched probably over 20 DVDs). Looks like I just have to track every penny to lessen my OTHER spending. I'm not shopping anymore, but I do spend $2 or $5 here and there for a coffee or a sandwich sometimes, and it really, really adds up. Groceries are also very expensive (duh), and we do shop sales, clip coupons, and eat a lot of lentils and tuna fish.

Maybe I'm missing something. Maybe I really do just need more of an influx of cash. Anyone else out there in a similar situation or want to share some "necessities" you do without?