The birds are singing and the flowers are in full bloom. Trees are getting their leaves back, and the kids are playing outside again.

It’s official: Spring is here.

Personally, I think spring is the perfect time to take a fresh look at your finances, from your savings account to your insurance policies. After all, the holidays are long gone (which means your spending is probably back to normal), and you’ve just filed your income taxes. It’s a great opportunity to sit down and take stock of your financial situation. From cutting down on expenses to taking the stress out of managing your money, spending an afternoon de-cluttering and simplifying your finances will make life a little easier.

Not sure where to start? Read on for my list of seven things you can do today to give your finances a sleek new look for spring:

1. Size up your spending. Sit down with your checkbook and find out where your money’s going and where you can cut corners. Whittle down your monthly expenses by cancelling subscriptions to magazines you don’t read, or ditching the costly gym membership. And don’t forget to look at things like your cable TV bill and your cell phone plan – if you’re paying for extras you don’t actually use, get rid of them. In today’s economy, we can all use a little extra cash – and trimming your monthly spending is a good place to start.

2. Go paperless. Nowadays, almost everyone – from your utility company to your cell phone provider – offers paperless billing. Of course, going paperless is good for the environment, but there are lots of other benefits to saying goodbye to traditional, paper bills. Not only will you save money on postage, but many companies offer automatic payment options or allow you to pay your bills online – you’ll never have to worry about late fees again. And, to make life even easier, check out my next tip . . .

3. Enroll in online bill pay. Another great way to simplify your monthly bills is to take advantage of your bank’s online bill pay feature. Instead of writing a check to, say, your electric company, then mailing it and waiting for the check to clear, online bill pay works in an instant. Your bill is paid sooner (usually within 24 hours), and your account balance is updated – all in one quick, easy step. Most banks offer this service free of charge, but it’s a good idea to check with your bank to get the details.

4. Sign up for overdraft protection. If you haven’t already, now’s the time to give yourself a little extra security in your bank account. After all, mistakes can happen – a transaction you forgot to deduct or a check you didn’t remember to write down – and even one tiny error can add up to a hefty bank fee for insufficient funds. If you’ve got a savings account, make sure it’s linked to your checking account with overdraft protection. Better safe than sorry.

5. Tackle your debt. Credit card debt can seem overwhelming, but there’s no time like the present to start whittling it down. Whether you owe a lot or a little, there are a few things you can do that will make a big difference. First, check up on your credit report – your credit score can have a huge impact on your interest rates, so make sure that everything on your credit report is accurate. If you find errors – dispute them. Next, shop around and compare interest rates – it might make sense to use a balance transfer to take advantage of another company’s lower interest rate (be sure to read the fine print and proceed with caution to avoid astronomical transfer fees or sky-high interest rates after the introductory period is over). And finally, make sure you’re paying more than your minimum balance every month – even a few dollars over can help knock your debt down faster.

6. Use your tax return wisely. If you’ve got a little extra coming back to you this year, it may be tempting to blow it on something frivolous like a vacation or a shopping spree. This year, do something smart with that extra cash: Start an emergency fund (if you don’t have one already). A good emergency fund should be enough to keep you afloat for three months, including mortgage payments, monthly bills, and food. If you already have a hefty emergency fund, consider using your tax return to pay down your credit card debt or take another bite out of your student loan or your car note.

7. Review your insurance policies. Sit down with all of your insurance policies – life, home, and auto – and check out exactly what you’re paying and how much coverage you have. After that, hop online and do some comparison shopping – most insurance companies will give you a free quote, and a little research may help you save hundreds of dollars a year.

Giving your finances a spring makeover pays for itself – it only takes about one afternoon, and just a few adjustments can add up to less financial stress and more cash in your pocket. Here’s to a happy, financially savvy spring!

Copyright © 2009 Reality Media Inc.

In today’s economy, we’re all trying to make our hard-earned dollars work harder. Whether it’s saving a few dollars at the grocery checkout or finding cheap (or free) entertainment, there are lots of ways to live comfortably for less.

Not sure where to start? Here are five things you can do right now to cut down on your expenses:

1. Cut Your Grocery Bill Down to Size. Some people still believe that when it comes to food shopping, you only have two options: Buy cheap junk food or fork over half your paycheck for healthier options. Fortunately, that’s not the case: With a little work on your part, you can find money-saving deals on good (and good for you) food. Start by clipping coupons (the cost of a Sunday paper is well worth the savings you’ll find inside) and reading the grocery store flyers you get in the mail. The one good thing about today’s economic climate is that many grocery stores are competing to have the lowest prices – take advantage of the deals and shop at the store that offers double coupon savings or great buy-one-get-one-free deals. But remember to stick to things that are actually on your grocery list: You don’t save if you buy stuff you don’t need.

2. Buy Used. “Pre-owned” isn’t just for cars anymore. From clothing to furniture to electronics, chances are you can find what you need without blowing your budget. Cruise thrift stores or secondhand stores, and don’t forget to check out websites like Craigslist or Freecycle to find cheap or free items instead of paying full price at a big department store. And, don’t forget to get the word out to friends and family if you need something – your Aunt Gertrude might just have a coffee table that she’s dying to get rid of, and your best friend may have an extra inkjet printer that he wants to unload. You don’t know unless you ask.

3. Start a Book Exchange. Or a DVD Exchange. Or a video game exchange. Entertainment can be expensive. But, whatever you’re into, you probably know some people who share your interests. Books, movies, and games are great ways to have fun at home, but they’re not always cheap. Instead of paying full price for entertainment, try lending and borrowing from friends instead. Trade that great new novel you just read for a DVD you haven’t seen yet. The best part? Your friends don’t charge late fees. It’s a great way to keep yourself and your family entertained – without spending a fortune. And, speaking of entertainment . . .

4. Cancel Your Cable Service. Seriously. This one may be a little scary at first, but the price tag that comes with even the most basic cable package can be scarier. Don’t get me wrong – TV can be a great source of family entertainment, but cable service in some areas can run upwards of $100 a month. Instead of paying for your favorite shows, rent series from your local video store, or watch them online instead – networks like NBC and ABC offer many of their shows on their websites, free of charge. And, if the thought of losing your cable is just too much to bear, think about downgrading your service – get rid of movie and premium channels you don’t watch, and you could save hundreds a year.

5. Lose Your Land Line. If you’re like most people today, you have a cell phone and a home phone – and two bills to go with them. Many cell phone providers offer great deals on things like free or cheap long distance and free calls to people in your network. Consider cutting off your land line, and you’ll probably save about $50 to $100 a month. Put the money into a savings account, and watch it grow.

With a few minor adjustments, you can keep more cash in your pocket, without feeling the pinch. And remember, a frugal lifestyle doesn’t mean “cheap” – it means spending (and saving) – your money wisely.

Copyright © 2009 Reality Media Inc.

Lose weight. Stop biting your fingernails. Read more books. Learn to knit.

If you’re like most people, you’re planning to ring in 2009 by making a slew of lifestyle changes. The great thing about a new year is that it gives you a fresh start. Maybe you didn’t use that home gym as much as you wanted to in 2008, or maybe you didn’t stick to that low-carb diet. A new year is a great opportunity to get back on track.

This year, as you gear up to say hello to 2009, don’t forget about your finances. Spend a little time getting up-close-and-personal with your checkbook and make a plan to curb your spending and fatten up your savings account.

Don’t know where to start? Read on for seven tips for a financially healthy 2009:

1. Avoid the mall. Seriously. As 2008 draws to a close, your favorite retailers will be running end-of-year clearance sales on everything from major appliances to winter coats. Unless you absolutely must have a new refrigerator, pass on the sales and put your extra money into your savings account instead.

2. Cut the cards. Got credit card debt? There’s no time like the start of a new year to change your spending habits and start putting a dent in your debt. Make a resolution to start paying off your credit cards. And, more importantly, make a resolution to stop using your cards, period. If you don’t have the cash to cover it, don’t buy it, or take the money out of your emergency fund instead. Don’t have an emergency fund? Read on for tip #3.

3. Start an emergency fund. A good way to make sure that you don’t have to rack up loads of credit card debt is to start socking money away for those unplanned emergencies. A good rule of thumb for most people is to have about three months’ salary in a separate account. But, don’t let that figure intimidate you: Decide what you can realistically put away, and go from there. If you start in January, you’ll be surprised how quickly your money will add up.

4. Curb your impulses. From fancy coffee to fashion magazines, DVD rentals to fast food – everybody has a few inexpensive vices. But, these little luxuries can add up to a big drain on your wallet. 2009 is a great time to cut down on impulse purchases. Got a twice-a-day latte habit? Kick it down to twice a week. Addicted to convenience foods? Make a lunch at home and brown bag it. You’ll be surprised at how much you’ll save.

5. Be a savvy shopper. Even the most financially savvy people in the world still have to go grocery shopping. But, there are dozens of ways to shop smarter in 2009 and stretch your dollar when stocking up on the necessities. Clip coupons and watch store circulars for double (or even triple) coupon events. Consider switching to store-brand items whenever possible. In most cases, they’re just as good as the national brand and can save you some serious money. Also, get in the habit of making a list before you go out – it’ll help you stay focused and buy only what you need.

6. Check your credit. From helping you secure a home mortgage to, in some cases, landing a new job, your credit report is used in countless ways. All consumers are eligible for a free annual credit report from the three major credit bureaus: Experian, TransUnion, and Equifax. Start the new year off right – request a copy from each and read them carefully. Not only does this give you the chance to dispute errors, taking the time to check up on your credit can also alert you to fraudulent activities, like accounts you didn’t open or charges you didn’t make.

And finally, my most important tip for 2009:

7. Write a budget. And stick to it. Writing a budget isn’t nearly as scary as it sounds. And, a budget is a great way to make sure that your finances stay on track in 2009. It’s pretty easy: Start with your total monthly household income, then deduct your bills (like your rent or mortgage, utilities, car payments, etc.) and expenses (like gas and food). After that, decide how much you want to put in your savings account and how much will go to your emergency fund. And, don’t forget to leave yourself a little fun money for the occasional restaurant meal or night at the movies. And remember to be flexible: If you find yourself a little strapped for cash after you’ve worked out your budget, don’t ditch it altogether – make adjustments until you hit on a budget you can live with.

Making a few simple adjustments to your spending and saving habits can go a long way. Follow these tips and you’ll be on the way to a financially secure new year.

Good luck and have a happy, healthy 2009!

Copyright © 2008 Reality Media Inc.

If you’re like many folks, the approach of this year’s holiday season has you feeling less than jolly. As the economy continues to flounder and the media predicts dismal retail sales, you may find it harder than ever to channel your inner Santa.

Sure, things aren’t perfect. But, before you pack up your holiday cheer and say “bah humbug” to the month of December, read on for a list of savings tips to make your holiday season merry and bright – without breaking the bank.

1. Set a budget. And check it twice. During the holidays, it’s easier than ever to blow big bucks on early-bird sales, rollback specials, and limited-time offers. There’s nothing wrong with a good deal. But, if you’re not careful, holiday bargain-hunting can be a major drain on your wallet. This year, keep your spending in check by setting a budget before you ever set foot in a shopping mall. To get started, decide how much you can spend on gifts for your friends and family (and, don’t forget coworkers or hostess gifts). After that, decide how much you’ll spend on each person, and track your expenses. Remember: Once your holiday gift budget is gone, it’s gone.

2. Craft with caution. Sure, handmade gifts and cards sound like a frugal alternative to store-bought gadgets. But, before you get carried away, stop and do a reality check: Will a DIY Christmas actually save you money? Crafting supplies aren’t cheap; for some items on your list, it may be more cost-effective to look for a ready-made bargain. Do some comparison shopping before you commit to a crafty Christmas.

3. Pay cash. Don’t use holiday shopping as an excuse to run up your credit card bills. There’s nothing festive about high-interest debt. Before you hit the stores, make sure you’ve got cash. If you really don’t think you can control your spending urges, leave the plastic at home.

4. Trim your shopping list. The holidays are all about giving, but that shouldn’t equate to overextending your finances to make sure you find the perfect gift for your cousin’s husband’s college roommate. Take a serious look at your gift list and see where you can cut spending. If you’ve got a large family, consider starting a new tradition: Instead of buying for everyone, draw names and do a gift exchange instead. Or, agree to make this holiday a “kids-only” event and bypass gifts for the adults entirely.

5. Fly smarter. If you plan on heading home for the holidays this year, it’s a good idea to make your travel arrangements as early as possible to avoid getting hit with last-minute price hikes. Additionally, a little flexibility can go a long way – if you can avoid hopping a plane on heavy holiday travel days (like the Wednesday before Thanksgiving, the day before Christmas Eve, or the day after Christmas), you can score some big holiday travel savings. The cheapest days to travel? Thanksgiving Day and Christmas Day.

6. Shop online. Save some cash (and your sanity) by avoiding the malls this holiday season. Many online retailers offer extra deals this time of year, like free shipping or complimentary gift wrapping. It’s a great way to take some of the stress out of finding that perfect gift.

7. Lay it away. Been a while since you’ve heard that? To offset this year’s predicted holiday shopping slump, many big retailers have resurrected their layaway programs. Because layaway allows you to set aside your holiday purchases and pay for them over time, it takes some of the sting out of larger items. Plus, the flexible payments are a great alternative to credit cards. Just remember to read the store’s policy carefully to make sure your treasures don’t end up back on the shelf.

8. Get a part-time job. With the holiday season just around the corner, many retailers are looking for part-time employees to help ease the shopping rush. If you’ve got extra time in your schedule, consider picking up a few hours a week at your favorite store; use the money you earn to help pay for gifts. The best part? Most stores offer employee discounts – another great way to cut costs.

9. Go generic. Thanksgiving dinner. Christmas dinner. The office party. The New Year’s Eve bash. During the holiday season, gifts aren’t the only things that can drain your bank account. Big family dinners can get pretty pricy, especially if you’re the one hosting the event. Cut your grocery bill by opting for generic ingredients instead of more expensive brand-name items. Or, make this year’s dinner a potluck and encourage guests to bring their favorite holiday fare.

Cutting a few costs and keeping an eye on your budget can help you get back into the holiday spirit. And remember: No matter what your financial situation this year, the holiday season is a time for enjoying time with your friends and family, not about dollars and cents.

Copyright © 2008 Reality Media Inc.

Back to school time: pencils, books, and an argument with your teen about a pair of $150 sneakers. How do you get him ready for the school year without breaking the bank? With every store advertising super deals on must-have items and kids begging for pricy designer duds and electronic gadgets, it’s easy to get caught up in a spending free-for-all. This year, play it smart with a few lessons in savings-savvy back to school shopping.

Lesson One: Buy Used Textbooks

College is a time of excitement and new possibilities. A time to learn and expand your horizons. And, it’s a time when unsuspecting freshmen (and their parents) are whacked with textbook prices that can reach into the hundreds. If you’ve got college students on your shopping list, encourage them to check out websites like amazon.com or half.com – often, you can find the same literature anthology for a fraction of what the college bookstore charges. It’s a good lesson in savings for both of you.

Lesson Two: Be Tech-Savvy

This time of year, your local newspaper is overflowing with brochures from every big-box electronics retailer in a 50-mile radius, each offering competitive prices and steep back-to-school discounts on all things electronic. If you can afford it, there’s nothing inherently wrong with buying your child a laptop to help with her homework, but, remember to keep it simple. Don’t opt for major upgrades – they’re mostly unnecessary and can drive the prices back up again.

And, it’s important to set boundaries: Is a new MP3 player really a back-to-school essential? Play it smart and don’t let the sales (or your child’s claim that she’ll absolutely die without one) get the better of your bank account.

Lesson Three: Shop Close to Home

Very close. Before you head out the door and hit the stores, take stock of what your kids actually need. Go through your kids’ closets and see what fits and what can take another year of wear. And, make sure to scour the house for school supplies: If you’ve got boxes of pens or glue sticks in your home office, there’s no sense in rushing out and spending money to buy more.

Lesson Four: Hold Off on Seasonal Purchases

Sure, that Hannah Montana backpack will make her the coolest kid in the 6th grade, but, it will be even cooler when the price drops in October. After the back-to-school rush ends, most stores banish backpacks, lunch totes, and other essentials to the clearance aisle, where you can pick them up for a steal.

Lesson Five: Get out of the Mall

If you’re looking for budget-conscious fall fashion finds, you may want to avoid your neighborhood shopping mall. Instead, try discount stores, outlet centers, and even garage sales or thrift stores. Sometimes, you can find the same name-brand items that your child just “has” to have at a price you can live with. And, to really maximize your child’s wardrobe, check out the next lesson:

Lesson Six: Keep it Simple

You were young once, too – and you have the embarrassing family photos to prove it. There’s you at Thanksgiving ’88 in your stirrup pants and funky hairdo; that family reunion in ’92 when you were going through your flannel-soaked “grunge” phase. Trends come and go, and they’re not always cheap. Protect yourself from high prices (and your kids from cringe-worthy Kodak moments) by purchasing simple, affordable clothing that won’t be out of style by the time you cut the tags off. If your kids really want to experiment with trends, set a spending limit for indulging fads, or let them use their own allowances to do it.

Lesson Seven: Clip Coupons

Now is the time to start collecting coupons for things you’ll need throughout the school year. Lunches and snack foods, markers and glue for school projects, and the ubiquitous, teacher-requested box of Kleenex – before you buy, peruse your newspaper or coupon mailers and start stockpiling coupons for the things you’ll have to buy later.

Lesson Eight: Teach Responsible Spending

Some lessons can’t be taught at school. Use your back-to-school shopping as an opportunity to teach your kids a much-needed lesson in smart spending habits. After all, if your son sees you whip out your credit card every time he wants something, he may do the same thing one day. Involve young adults in budgeting for school clothes and supplies; if they have allowances or part-time jobs, ask them to pitch in for high-dollar must-haves.

Copyright © 2008 Reality Media Inc.

Smoking . . . biting your fingernails . . . talking on your cell phone in traffic . . . misusing balance transfers?

When you think of bad habits, your money may not be the first thing that comes to mind. But, your spending and saving patterns can be just as unhealthy and hard to alter as your addiction to Ben and Jerry’s or your compulsion to text your best friend during rush hour. And, just like quitting smoking or going on a serious diet, taking control of your finances requires dedication and hard work.

If you find yourself setting a budget one week only to blow it all on a weekend shopping spree the next, it may be time to take stock of your financial habits and find out which ones need to be kicked for good:

Bad Habit #1: Abusing Balance Transfers

In theory, transferring your high-interest credit card debt to a new account with a low-to-nonexistent introductory rate is a great way to reduce the amount you owe and pay off your balance more quickly. But, in reality, a balance transfer can sometimes lead to more debt. If you use a balance transfer, make sure that you keep your original goal in mind: Getting rid of debt. Don’t let the low interest rate on your new card tempt you into a spending spree, and make sure you read the fine print on the terms of the new agreement.

Think about it: A credit card got you into this mess. Do you really trust another one to bail you out? A better – and safer – way to reduce your debt is to get a part-time job and use the paychecks to whittle away what you owe. Or, tighten your budget a little until you get your balance under control. And, once you pay off your credit card, stop using it. End of story.

Bad Habit #2: Not Setting a Budget

This is one of the worst – and most common – bad money habits. If you’re not setting a budget, you probably have no idea where your money is going. Taking the time to set a budget is one of the smartest ways to get a handle on exactly how you’re spending your money and where you can afford to tighten your belt a little.

It’s simple, really. Start with the total you make per month, subtract your living expenses like mortgage or rent, food, and utilities. And, don’t forget to budget for gas or transportation. After that, decide on an amount to put into savings and leave yourself a small allowance for entertainment and other “fun” expenses. But remember: To be successful, you have to stick to your budget once you set it. No excuses.

Bad Habit #3: Ignoring Your Credit Report

The information on your credit report is used in countless ways – from getting a good rate on a home mortgage to securing a new job. And, with identity theft becoming more and more common, it’s critical to scan your report for any errors.

According to federal law, you are eligible for a free credit report each year from the three major credit bureaus: Experian, TransUnion, and Equifax. It’s a good idea to request a copy from each and review it thoroughly. Not only does this give you the chance to dispute errors, taking the time to check up on your credit can also alert you to fraudulent activities, like an identity thief opening a credit card in your name.

Bad Habit #4: Not Starting an Emergency Fund

When it comes to setting up an emergency fund, it’s easy to procrastinate. After all, the prospect of setting aside three to six months of income can be pretty intimidating, especially if you’re starting from the ground up. But, we all have to start somewhere. Figure out how much you can save per month, and set that amount aside in an account that’s for emergencies only. And remember: Your emergency fund is separate from your savings account, so set aside enough in your budget to stock your savings and save for emergencies.

Your emergency fund should be enough to allow you to pay your basic living expenses – like housing, utilities, and groceries – for several months in a worst-case scenario. If you’re laid off or are unable to work because of an illness or injury, your emergency fund can help you make ends meet until you get back on your feet again. And, it’s important to remember that your emergency fund is for true emergencies: Don’t be tempted to blow the money you’ve saved. A new TV is not an emergency.

Bad Habit #5: Paying the Minimum

The key to financial independence is living debt-free – and you can’t do that if you’re simply paying the minimum balance on any existing credit cards. Minimum payments may seem like a more affordable way to pay large debts, but this strategy only benefits one person: Your credit card company. Carrying a large month-to-month balance means that you’ll be shelling out more in interest over the long haul.

Kick this habit by paying off your entire credit card balance every month. If you’ve racked up a pretty large amount in debt, sit down with your budget and figure out just how much you can afford to pay every month, and stick to that amount until your debt is paid off. You may have to skimp on things like going out to dinner, but you’ll feel great when you’re finally debt free.

Breaking these bad financial habits will take some hard work on your part – anyone who’s ever started a diet understands this. But, once you learn to change the way you think about your money, you’ll be on the road to financial independence and debt-free living.

Copyright © 2008 Reality Media Inc.

The kids are out of school. The temperature is rising. Flip-flops are your new footwear of choice. Summer has arrived, and, for millions of Americans, that means one thing: vacation. With gas prices going through the roof and air fares trailing close behind, you may find yourself wondering if your hopes of getting away from it all will ever get off the ground.

Travelers, take heart – even in a less-than-perfect economy, you can have that dream vacation without an accompanying financial nightmare. Here are 10 tips to help you plan an affordable getaway for the whole family:

1. Be flexible. If you’re fortunate enough to have a little wiggle room in your travel schedule, play around with different departure and arrival dates. Many airlines and hotels offer lower rates depending on the month or even the day of the week – which can add up to big savings for you.

2. Do a little comparison shopping. From hotel rooms to airfare, don’t take the first good rate you come across. Once you’ve found a bargain, do some research using price aggregator websites like Travelocity or Orbitz – you may find an even bigger bargain if you do your homework.

3. Look for hotel freebies. Many mid-priced hotels offer great, family-friendly deals, like complimentary breakfast or even free or reduced rates for children. Think about it: If you’ve got two kids, feeding them breakfast could cost around $20 a day – that means a savings of $100 a week in meals alone! Check out several hotel websites to find some money-saving incentives, and you’ll save a bundle.

4. Pass on the rental car insurance. For the most part, rental car insurance exists for one reason: To generate a healthy profit for car rental companies. Before you go away, give your own insurance agent a call: In the unlikely event of a vacation fender-bender, your insurance will probably cover the damages. Use the money you save to pay for gas, which brings us to our next tip. . .

5. Use the buddy system. GasBuddy.com, that is. GasBuddy is a site that searches for the lowest gas prices in a given city or ZIP code – a must when you’re traveling in an unfamiliar city, especially if your destination is known for tourism.

6. Clip coupons. Or download them, or pick them up from the hotel lobby. Pay a visit to your destination’s tourism office, or visit your hotel’s front desk – you can pick up some sweet deals on everything from theme park admission to dinner at a decent restaurant.

7. Avoid ATM fees. A dollar here, two dollars there – ATM fees are deceptively innocent, but, when added up over a week or so, they can pack a hefty punch. Try to get as much cash as you need before you leave for your trip. If you must visit a cash machine while you’re away, steer clear of ATMs at theme parks or in major tourist spots – chances are, you’ll end up paying double, or even triple the average fee.

8. Buy direct. Although the Internet is a virtual treasure trove of travel bargains, some of your best vacation deals may come directly from the hotel or airline itself. While it’s always a good idea to search online price comparison sites, it’s an even better idea to compare those rates to the ones offered directly from the airline or hotel. And, when booking a hotel room, don’t be shy about asking for a better rate: The worst that can happen is someone says “no,” but, you might be surprised to find that most hotels are willing to haggle a bit.

9. Consider a package deal. When you purchase a travel package, you lose a degree of flexibility in where you stay and for how long. But, in most cases, you’ll more than make up for the lack of choices with reduced rates on airline tickets, hotel rooms, and local attractions. Package deals are great for families who want to visit popular theme parks without dipping into the kids’ college funds to do so.

10. Pay cash. Don’t take a vacation from financial responsibility. There’s nothing wrong with bringing home a souvenir or two, but your credit card bill shouldn’t be your biggest reminder of your summer getaway. Be realistic about your vacation spending: If you want one dinner at a four-star restaurant, that’s okay, but try to balance a pricy night out with cheap eats the next day.

Whether you’re hitting the beach or off to do some big-city sightseeing, here’s to a wonderful, relaxing family vacation! With a little planning and a lot of travel savvy, your family can afford that vacation you’ve been dreaming of.

Solid Advice for a Shaky Economy

Recession. It’s a scary word that makes even the most fiscally responsible among us cast a nervous eye on our bank accounts. Even scarier, not everyone can even agree whether our economy is in a temporary slump or an all-out free fall. But, recession or not, you can take steps to ensure that you and your family are secure in a weak economy.

And, remember to stay calm. The worst thing you can do is make hasty, fear-based decisions. Take a deep breath and think rationally. It’s important to realize that, with a little preparation, you can be ready if and when a recession hits. You can’t control the economy, but you can control how you react to news of an impending recession.

Step One: Sharpen your Job Search Skills

One of the most frightening things about a recession is the possibility of losing your income when your company decides to cut costs. Nobody wants to think about being out of work, but there are things you can do right now to make sure that you won’t be completely caught off guard:

• Revise your résumé. If you’ve been out of the job market for a while, now is the time to give your résumé a makeover. Review it and add new, relevant work experience, skills, awards, and anything else that will make you stand out from the crowd if you need to start looking for a new job.

• Know your options. It doesn’t hurt to start looking at alternatives – spend a little time skimming through the want ads in your local paper, and check out job search websites like Monster.com or Careerbuilder.com. Find out who is hiring people to do what you do. If you see something that sounds intriguing, go ahead and apply. You never know – you may find your dream job. And, remember that some industries are more stable than others: Healthcare and education, for example, are not as dependant on the economy as the construction industry. Get creative and think about how your skills might transfer to a different field.

• Start networking. Consider joining a business networking group to expand your list of contacts – they say that when it comes to landing a job, it’s often all about who you know. Connections can come in handy if you’re faced with an unexpected layoff. Networking sites like LinkedIn.com and even FaceBook.com are great ways to stay connected to coworkers and business partners.

Remember to keep saving money, even if your job is secure: In a recession, raises and bonuses tend to be less than they are in a more stable economy.

Step Two: Beef up Your Emergency Fund

Experts recommend that you should have some extra cash saved up for emergencies like an injury or the unexpected loss of a job. Your emergency fund should allow you to cover your mortgage, bills, groceries, and other living expenses for 3-5 months. If you already have emergency savings, keep adding to it. If you don’t, start now:

• Pay yourself first. Even if you’re on a tight budget, make an effort to put something into savings every payday. Make some adjustments to your spending, like giving up restaurant meals or cutting your entertainment budget, and start funneling more of your income into savings.

• Think Interest. Put your emergency savings into an interest-bearing savings account or a money market account so you’ll earn some money on it while you save. But, make sure you don’t invest your emergency funds into anything that makes you pay a penalty for withdrawal, like an IRA – the whole point of having emergency savings is to have money when you need it.

• Restrict your access. If you aren’t careful, you may end up spending your emergency fund as fast as you put it away. To avoid using your emergency savings, consider putting the money into a separate account at a different bank. And, don’t carry an ATM or debit card that’s linked to that account.

Step Three: Don’t Spend That Stimulus Check

Even though Uncle Sam is sending us a little extra this year, that doesn’t mean you have to rush out and spend it. Instead of rushing to the mall and buying that flat-screen TV you’ve been eyeing, take a minute to think about other, more responsible ways you could use the money:

• Save it and forget it. It’s money you didn’t have before, so it should be pretty easy to pretend you never got it in the first place. Deposit it into your savings account or use it to pad your emergency fund. But, do it quickly – the longer you have that check, the more likely you are to spend it on something frivolous.

• Pay off debt. If you’ve got a car loan, a student loan, or credit card bills hanging over your head, this is a perfect opportunity to take a big bite out of your debt.

Step Four: Identify Sources of Extra Cash

Whether you want to add to your emergency fund or just pad your savings account, there are several things you can do to put a little extra cash in your pocket:

• Sell your stuff. Scour your storage spaces, purge your closets, and ransack your attic. If you haven’t worn it, used it, or thought about it in a decade, it’s time to let go. Have a garage sale, sell it on eBay, or take out a classified ad – put the extra money into your savings or your emergency fund.

• Get a second job or work overtime. What better way to impress the boss than to stay late or come in early to knock out a few projects? Not only will you show some initiative, you’ll also add to your bottom line. If you don’t get overtime, consider a part-time job on evenings or weekends – a little extra income never hurts.

You can’t prevent a recession, but you can prepare for one by making smarter financial choices. In any economy, learning to spend less, save more, and cut costs can pave the way to financial stability and peace of mind.

Copyright © 2008 Reality Media Inc.

Challenge yourself to living on a strictly set budget for one week.  You’ll discover what’s truly a “necessity” and what you can do without, learning how to save possibly thousands of dollars a year.   

Imagine if, at the beginning of the year, you were asked to fork over $5,000 for “impulse buys and luxuries.”  Would you pay up?  You think hard about making a big purchase like a new computer, but when you add up the cost of all those careless little purchases over the year, they wind up being a bigger investment than you realized.  Here’s a simple way to whittle down those unnecessary expenses, so you can make the big purchases you really want to make.

For one week, put away all your credit cards and your check book.  Use those items only for paying for bills.  Take out $70 in cash.  That is all the spending money you have for the week. 

How will you spend it? 

Holding $70 in cash may feel like a lot of money.  But divide it into seven days and you’ve got one $10 bill for your wallet each day.  That has to pay for all of your personal expenses, from food to gasoline to entertainment. 

Be a planner. 

This can be a pretty fun game.  If you are fairly good at planning ahead, you should try to spend most of your cash on one well-planned trip to the grocery store.  That way, you don’t run the risk of wasting your cash on luxury items as the week goes by. 

With $70, you can purchase food and necessities for yourself for a week.  Remember to include the cost of transportation in your $70 budget:  gas, bus fare, or train tokens. 

Be creative. 

If you normally buy your lunch during lunch hour, this is the week to try bringing a sack lunch.  Instead of tempting (and costly) pre-made items, buy the ingredients and make them yourself.  Money that used to pay for one coffee-shop sandwich can instead pay for the bread, meat, and cheese for a week’s worth of sandwiches.  

Fifteen Cheap Grocery Store Items That Fill You Up 

1:      Loaf of bread

2:      Sandwich meat

3:    Sandwich cheese

4:      A dozen eggs

5:      A gallon of milk

6:      A box of cereal

7:      A can of pasta sauce

8:      Noodles

9:      Bag of dried beans

10:  Bag of dried rice

11:  Whole chicken

12:  Head of lettuce

13:  Two to four tomatoes

14:  Two onions

15:  Bag of mixed fruit

The total for that would be an average of just $25 if you went with store brands.  Those items alone could feed you three meals a day for a week.  You can make scrambled eggs, egg salad, grilled cheese sandwiches, chicken spaghetti, chicken noodle soup, beans and rice, chef salad, and more.  And you have $45 left!

Be smart. 

You’ve purchased food.  Now, how can you make those last dollars stretch the furthest?  Here are a few tips to save on gasoline, non-food items, and entertainment:

ü      Use the bike.  Most trips taken are within five miles of your house.  So dust off the cycle to save on gas.

ü      Send in your rebates.  Every week, many companies offer free toothpaste, feminine-hygiene products, vitamins, diabetic products, and other domestic staples – if you just remember to send in your rebate forms.

ü      Revive the board game.  Whether it’s just you and your loved one or fun for the whole family, the board game can inspire laughs and great conversation.

ü      Get back to nature.  Parks and beaches are great places to recreate without spending a dime.   

Think about what you saved. 

For one week, you went without candy, coffee, luxury candles, expensive movie tickets, random trinkets from the checkout counter, a bar tab that got out of hand, and those trendy sunglasses that will go out of style next month anyway.  What did you gain?  MOOLA!  And when all that money adds up, you can afford to buy something truly nice, like a vacation or a new computer. 

Can you survive the week? 

Undoubtedly. You will be just fine on your severely limited budget for just one week.  You don’t need to limit yourself this strictly all the time.  This one-week test is to show you where in your life you can cut costs.  Making yourself live on very little forces you to make choices that teach the difference between needs and wants.  You’ll learn the true value of every purchase, and in the long run, you’ll become a wiser spender.