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.

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.

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.

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.