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.

I think The Beatles said it best: “I read the news today, oh boy . . .”

“Oh boy” is right: Every talking head on TV is preaching economic gloom and doom and every day brings word of a new big company teetering on the brink of financial crisis. It’s scary stuff, to be sure – but, it’s important to remember that, despite opinions to the contrary, the sky is not falling. And, it’s even more important to keep a level head when it comes to your finances.

Take a deep breath, sit back, and read on for ten things you can do today to keep your money (and your peace of mind) intact:

1. Check up on your bank’s stability. What’s a four-letter word for financial security? FDIC. If your bank is protected by the FDIC, you can rest assured knowing that your money is safe, even in worst-case scenarios. If it’s not? Move it. Now. And remember: The FDIC insures up to $100,000 per person, which is sufficient for many Americans. But, if you’ve got a little more than that, see the next tip . . .

2. Spread your money around. If you’ve got more than $100,000, it’s a good idea to put your money into more than one bank to make sure you’re fully protected by the FDIC. That way, all of your funds are safe and sound – and drawing interest.

3. Pinch your pennies. Now is as good a time as any to start exercising a little more financial responsibility. Take a long, hard look at your spending habits and find a few places to cut costs: Dine at home instead of going to restaurants, drop that unused gym membership, or cut back on your entertainment budget. Save wherever you can, and use the extra money to pad your savings account.

4. Don’t pull your money out of the bank. Remember tip #1? As long as your bank is protected by the FDIC, your money is safe where it is. Keep calm and resist the urge to stuff your life savings into your mattress (which is NOT, by the way, insured by the FDIC).

5. Tune out and turn off. If you’re feeling stressed about the shape of today’s economy, do yourself a favor: Stop watching the news for a while. Go for a walk outside, read a book, or do something fun with your kids – watching hyped-up 24-hour coverage of the financial crisis of the day can be hazardous to your mental health.

6. Diversify. If you’ve got an investment portfolio, your first impulse at a time like this may be to sell, sell, sell while you still can. But, this knee-jerk reaction can be an unnecessary – and costly – mistake. A well-diversified portfolio is one of the best protections you can have against an unstable market; it’s best to stay the course and wait for the market to come back on its own. If you’ve already got a diversified portfolio, good for you, you’re one step ahead of the game. If you don’t talk to your financial advisor about how you can safeguard your investments.

7. Pay down your debt. In times of economic uncertainty, many credit card companies respond by jacking up your interest rates and whittling down your credit limit (especially if you’ve got a sketchy credit history), leaving you in a financial bind. If you have debt, make every effort to pay it off as soon as possible to avoid taking a serious hit in the wallet.

8. Consider getting a second job. One of the scariest things about a shaky economy is the prospect of being “downsized” right out of a job. If you feel a little uneasy about your job security, getting a part-time job may help out if times get really tough. Use your talents to widen your safety net: Are you a creative type? Offer freelance services, like illustration or writing. A sales whiz? Get a part-time position in retail. That extra money may be a lifesaver in a worst-case scenario.

9. Beef up your emergency fund. Or, start one. In any economy, it’s a good idea to have a few months’ salary stocked away for an emergency. In an uncertain economy, it’s essential. Cut expenses, use the money from that second job, or just take a bigger chunk out of your paycheck – it may sting a little, but it will be worth it if you need it.

And, finally:

10. Stay calm. This is crucial. Yes, things are scary right now; a bit of worry is to be expected. But, worrying too much can lead to clouded judgment and poor decision-making. Don’t do anything rash, stay on top of your financial situation, and calm down. You’ll be glad you did.

A clear head and a firm grasp on your own financial situation is the best protection in an uncertain economy. Keep your cool, and keep your money in the bank. And remember: Despite all of the bleak reports about the economy, many analysts say that it can only get better from here. Now that’s good news.

Copyright © 2008 Reality Media Inc.

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.