The Party. The Hang Over. Now...THE RECESSION...

[Confucius]

This topic is way to important to not have its own thread... I don't know about you...but this is causing havoc to people who are close to me. And yes, we are in a recession.


http://www.reuters.com/articlePrint?...39525420081009

UPDATE 1-U.S. bank National City in sale talks -WSJ
Thu Oct 9, 2008 2:26am EDT
(Adds background)

Oct 9 (Reuters) - U.S. regional bank National City Corp (NCC.N: Quote, Profile, Research, Stock Buzz) is in talks with a number of banks about a possible sale, the Wall Street Journal said, citing people familiar with the situation.

PNC Financial Services Group Inc (PNC.N: Quote, Profile, Research, Stock Buzz) and Toronto-based Bank of Nova Scotia (BNS.TO: Quote, Profile, Research, Stock Buzz) are among the potential bidders, the paper added.

National City and PNC declined to comment and Bank of Nova Scotia couldn't be reached, the paper added.

National City did not immediately return a call from Reuters seeking comment, while PNC and Bank of Nova Scotia could not immediately be reached for comment.

National City had said in late September it had no plan, intention, or need to raise additional capital, or the need to undertake any particular transaction because of insufficient capital.

Shares of the big Ohio-based bank have plummeted over 85 percent so far this year as the regional bank sector suffers from a crisis of confidence, even as Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) and Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz) spar over another regional bank Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz). (Reporting by Savio D'Souza in Bangalore; Editing by David Holmes)


© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

I guess this is better than the bank going under completely. This sub-prime mortgage mess is unbelievable.

[Confucius]

AIG getting fresh billions from Fed, defends event
Wed Oct 8, 2008 6:47pm EDT

NEW YORK (Reuters) - American International Group Inc could get nearly $38 billion in fresh cash under a program announced by the Federal Reserve on Wednesday, as the insurer tried to fend off criticism of a lavish event held days after getting an initial $85 billion government loan.

Under the new plan, the Federal Reserve Bank of New York will take up to $37.8 billion in investment-grade, fixed-income securities from AIG in exchange for cash.

The securities were previously lent by AIG's insurance company subsidiaries to third parties. The Fed said the new program will allow the company to replenish liquidity used in settling transactions with counterparties.

AIG had drawn fire in Washington on Tuesday for spending $200,000 on hotel rooms and $23,000 on spa services at an event, just days after it got the emergency loan from the government to avoid bankruptcy in the middle of the worst credit crisis since the Great Depression.

As lawmakers grilled former top executives at a hearing, Rep. Elijah Cummings, a Maryland Democrat, said: "They were getting facials, manicures and massages, while the American people were footing the bill."

On Wednesday, AIG said the "business event," hosted by one of its subsidiaries, was for independent life insurance agents. It said the event was planned "months before" it received the loan last month, and no AIG executives from headquarters attended.

AIG's effort to correct the record on the event came after White House spokeswoman Dana Perino used the word "despicable" on Wednesday when asked about the AIG event.

"I understand why the American people would be outraged," she said at a White House briefing. "It's pretty despicable, to realize how callous somebody might be."

President George W. Bush did not intend to benefit industry titans when he approved the bailout of AIG and a wider $700 billion Wall Street rescue package, she said.

"Rewarding failure is something we have a very hard time swallowing," Perino added.

AIG said current Chief Executive Edward Liddy had written a letter to Treasury Secretary Henry Paulson to clarify the circumstances of the business event.

The company said Liddy assured Paulson that AIG now faces very different challenges, saying: "(W)e owe our employees and the American public new standards and approaches," and that the company is "re-evaluating the costs of all aspects of our operations..."

AIG said 10 employees from its subsidiary, AIG American General, attended the 100-guest event.

(Reporting by Jonathan Spicer, with additional reporting by Andy Sullivan, David Lawder and Glenn Somerville in Washington, and Juan Lagorio in new York; Editing by Tim Dobbyn)

http://www.reuters.com/article/newsO...4979Q320081008

[AKA_Monet]

'Tis sad... Like everyone's bailing out and we, the taxpayer, are left with the bill...

[Little32]

So how are people thinking about weathering this storm? What are your strategies?

[SummerChild]

I tried to get that three months of pay built back up in the bank. I probably need more the way this economy is looking.

I stopped contributing to my 401K in June. I won't start back up again until the economy comes back - or at least until 2009. I'll save my money post-tax, and lose the advantage of pre-tax savings, but hey, at least i know it will be there if I go looking for it....

I now have a budget.

I am thinking seriously about starting to take the train to work and saving on gas costs...and the cost to pay for monthly parking at my work location, which is roughly 100 per month (plus the 150-200 that i pay every month for gas).

i am trying to pick up a foreclosure downtown (where the market is still somewhat booming), put it right back on the market and let it sit while a close relative lives in it and pays the mortgage. then whenever it sells, cut my relative in and pay off some student loans. we'll see. b/c paying 200 extra per month does nothing for lawschool student loan debt (esp when you have graduate degee debt too).

those are my strategies.

SC

Originally Posted by Little32

So how are people thinking about weathering this storm? What are your strategies?

[preciousjeni]

Originally Posted by SummerChild

I now have a budget.

A budget is so essential! I've always had some form of budget, but since I got married in 2006, my budget got very specific and rigid. I've determined that we literally cannot afford to have TV, even the $18/month basic cable. People think I'm crazy for being so strict with the money, but doing so (and making smart financial decisions) has allowed us to live comfortably, buy a car, pay off all the family debt and buy a house within the past two years.

We're also looking into using the limited bus system along with being much more critical about our travel/transportation needs vs. desires. And, something we've been strongly considering is part-time jobs to build our savings account back up and pay off our mortgage more quickly. I'm hoping to have it paid off within ten years, preferably 5-7.

[Confucius]

Originally Posted by preciousjeni

A budget is so essential!

So essential is right and I bet a lot of Americans are thinking the same thing. I think that you and Summerchild are on the right track.

I am trying to figure out how much cable and phone I can cut off from my Comcast package. The only problem is that my cell phone doesn't really work in my apartment and my tv can not pick up a signal (and my tv is up to date). However, the basic package for the local channels is $20.00 a month and I would have to shell out $40.00 for my internet service so, I would still have to fork over $60 for about 7 channels and internet service. But I would save $70-$80 a month.

But to be honest, I did not have cable until I moved into my current apartment. I had no need for it. I watched local channels and used the DVD player and internet for almost everything.

Summerchild, I have not stop putting money in my 401K BUT I cut my contributions back by 50% I cut my contributions back to about 2% for the time being. Plus, I am not fully vested so, I should be ok.

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

It is weird that b/c our economy is so jacked, gas prices keep going down

[Honeykiss1974]

I've always lived on a budget - shoot I even budget my "play money" every month. (Play money is more than I'm allowed to spend on non-essentials such as new lip gloss, a new hair product, etc.).

I have definitely started to cut down my "play money" budget and have started be more observant of grocery store sales, etc.

Originally Posted by Confucius

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

OMGoodness, this is soooooooooooooooooooooo my issue too. After sitting here calculating, I spend about $50 a week, which adds up to $200 a month!

Originally Posted by Confucius

It is weird that b/c our economy is so jacked, gas prices keep going down

I always said our gas price was high primarily due to speculation but most people thought I was crazy. LOL I should ask them now why they think the price of gas is so low now. Here in Kansas, it was $2.67 when I filled up today.

[AKA_Monet]

Well I have a little credit card debt--I know--bad. I heard that one should ask for an extension and not pay it because what does a Credit Card Company need with my piddly money... LOL... But that I think would be unwise...

Then again, they said Pride won't feed your family... Take the hit to live another day to eat...

The other issue is, job security--I have none--so, basically, I am pounding the pavement to have a better job. The seasonal stuff will start soon, so I am looking into that also. And I am doing all kinds of networking. Especially with my business in mind.

Lastly, I need to redo my budgets. But I have found that grocery shopping in bulk for items you can live off of for awhile--like rice, beans, flour, dried foods and not purchasing processed foods that much or meats--and shopping at co-opts and farmer's markets will help your bottom line. Such as, if you know how to make bread rather than buy it, it would be cheaper during these hard economic times.

Other bills might have to get cut like cell...

This whole thing is just depressing overall.

[SummerChild]

Confucius,
For years, I lived w/out a cellphone or a cordless phone. I have NEVER had cable. How do I get along w/out it? Well, I talk to my friends on the phone, watch local tv and spend time with my man and with family. I really don't have much time to be surfing all of the channels that cable provides. Since I have been either working or in school since 1992 (ugrad, grad and lawschool), I have felt that if I had that much time on my hands, I could be asleep or going out and experiencing the world for MYSELF instead of watching someone else's world on tv. So, you might consider living w/out cable. Go to Walmart and buy an electronic antenna, ya heard. You will get at least three stations, and if you can't live with that, go out and get a life is what I tell people. You won't be watching so much tv anyway. (Not talking to you, just talking in general.)

Also, I cut my landline phone bill back to the basics - no caller ID, no three way calling, no star 69 service... and I told them to give me the $20 fee (not package) that consists of nothing but a telephone line. Yes, that's right. It is not a package and the sales people always act like either they don't know about it or can't figure out how to do it. Ask for a manager and tell the manager that you don't want a PACKAGE. You just want to know the cost for a basic telephone line. In NJ, it's $13. In Atlanta, it's about $20. It is amazing how much we pay for phone service in the home and most of us are either never there or use our cellphones. I would cancel the service altogether and keep only my cellphone, but I have a home security system that requires that I have landline service at my home. Otherwise, getting rid of the landline can save up to $70 per month, once they finish adding the FCC and everyone else's taxes to the bill.

Also, for my cellphone service, I use MetroPCS. Is it in your area? Metro gives unlimited local and long-distance and 411 and texting for a flat $40 per month. YOu never have to worry about overage charges (which used to eat me alive to the tune of over $100 per month) and there is NO CONTRACT. The drawback is that if you travel out of state, you may have to buy minutes (or something like that) depending on where you go. The way that I see it, I'm like, hey, I travel from time to time for work, I can go old fashion and simply get a calling card for $10 for those rare occasions when I'm not in my home state. Metro saves me a huge amount off of my cellphone bill each month.

I also don't get my hair done each week like I use. Yes, I use to get my hair done every week. That alone was roughly $200 per month. I haven't been to the hairdresser since June. I wash it, blow dry it, even relax it myself and just yesterday, I was getting my acrylic overlay (one of my few luxuries at $25 for a full set in Atlanta) and the *hairdresser* complimented me on my hair. Ok??? I told her, honey this is 6 months of nothing - for roughly FREE, ok???

My problem is that I don't cut way back on everything. I just do some of these things so that I'll have more money for some other things that I want to do...like trying to pick up a property and building my savings back up. But each little bit helps, I guess.

I just started on my budget this week. It's been a little tough b/c I don't like to have to think about what I'm spending. This is someone who never thinks to ask how much something is until the cashier rings it up. Yes, literally, it's a curse. The price doesn't even dawn on me unless it's something like jewelry (i.e., something that is WELL KNOWN for being extremely expensive). So it's a little bit of a drag to have to watch what I'm spending. This is also another reason that I'm not rushing to get down the alter. My beau has let me know that I'm "the one"; however, does a sister really feel like having her spending habits scrutinized? Not so much. LOL. Folk always trying to get down the aisle and get "chosen" by some man but that stuff comes with strings. I was buying a number of purses a couple of weeks ago (6 purses, yes, I know that's awful) and the lady who was selling them wanted to know if she needed to meet me in the alley to get the purses to me so that my husband wouldn't know about them...and she was completely serious. I told her, honey, wrap those purses up. I don't answer to anyone on this earth. So there you go, my spending habits are somewhat erratic and so a budget is hurting a little. But at the same time, I save so much on other stuff - like no cable and other things that maybe it all balances out.

I will be checking back on this thread to see how I can reduce spending.

Does anyone know how to get and keep utility bills down? Is it true that if I unplug everything, it will make a significant difference in the electricity bill?

SC

Originally Posted by Confucius

So essential is right and I bet a lot of Americans are thinking the same thing. I think that you and Summerchild are on the right track.

I am trying to figure out how much cable and phone I can cut off from my Comcast package. The only problem is that my cell phone doesn't really work in my apartment and my tv can not pick up a signal (and my tv is up to date). However, the basic package for the local channels is $20.00 a month and I would have to shell out $40.00 for my internet service so, I would still have to fork over $60 for about 7 channels and internet service. But I would save $70-$80 a month.

But to be honest, I did not have cable until I moved into my current apartment. I had no need for it. I watched local channels and used the DVD player and internet for almost everything.

Summerchild, I have not stop putting money in my 401K BUT I cut my contributions back by 50% I cut my contributions back to about 2% for the time being. Plus, I am not fully vested so, I should be ok.

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

It is weird that b/c our economy is so jacked, gas prices keep going down

[Honeykiss1974]

/\/\/\ I never found unplugging electronics to really make a dent in my utility bills. The only thing that really made in my electric bill was keeping my themostat steady, especially in the winter. Fortunately, my windows face the northern sky so I never receive direct sunlight (which helps). Doing this cut my bill nearly in half especially during the winter.

I would try that and see what works for you (temp wise). I'm naturally a "hot" person so in the summer, I CAN'T STAND to be too hot so I did keep mine at a cooler temp. But in the winter, 55-60 worked for me.

[I.A.S.K.]

I really do not have a budget as I am a broke college student.
I have 2 jobs and all of my $$ go straight to my university to cover my tuition and R&B and fees (which still aren't being paid in full with a loan, scholarship, and 2 jobs so I'm thinking about getting a 3rd next semester).
I get two meals a day on my meal plan and so I make sure that for the most part I only eat those two. (I try to jack food from the cafeteria as much as possible because the way I see it is the food is horrible and can only be eaten in small amounts so taking some with me is only fair, bump the rules!)
I hope to buy a fridge for my room so I can have some food that I know is edible. The last time I ate in our cafe my throat started swelling up about 30mins later and I have no known food allergies (and all of what I thought I ate I know I'm not allergic to, so that right there is questionable).

On saving $$ on energy (since saving the environment is one of my passions)
1. I agree with HK1974 on the regulating your temps in your home. In my moms house the temp control was split between the upstairs and downstairs. We only heat the upstairs in the winter and even then not all that much. Also we had a timer that would allow you to set the temp for different times of the day. So from like 8am-5pm when no one's home its basically off and it turns on upstairs at like 6pm when people get home and then we adjust as necessary while we're there.

2. To save on your energy bill:
I did a little research and it seems that basically appliances like cellphone chargers, chargers in general, tv's, clocks and things with built in clocks (like microwaves) do use energy even when turned off. The amount of energy..I cant really tell.
This surge protector claims to save energy
http://www.household-gadgets.com/sma...protector.html

Here's a Yahoo Answers page on the unplugging appliances question
http://answers.yahoo.com/question/in...7130413AAdEIN2

And here is a list that details how much energy those small appliances actually use
http://www.consumerenergycenter.org/...mall_appl.html

3. I suggest using CFLs in your home.
Why Choose GE Energy Smart Bulbs?

• Save money: On energy and bulb replacement costs
• Save energy: Up to 75% less energy
• Last up to 10 times longer
• Turn on flicker free
• Most provide the same light output (lumens) but use lower wattages

• Soft white and daylight color temperature options
• Fit in most common household sockets/fixtures
• Instant-on feature
• Dimmable and 3-way products available
• ENERGY STAR® qualified

You can use the link below to calculate what your energy savings would be if you switched to CFLs. If you're in Atl I have a friend who's organization converts people's homes to CFLs (for free).
http://www.gelighting.com/na/home_li...hting_calc.htm
If that doesn't work go here (and you can also use this for more info):
http://www.gelighting.com/na/home_li...ergy_smart.htm

[RaggedyAnn]

Originally Posted by SummerChild

Does anyone know how to get and keep utility bills down? Is it true that if I unplug everything, it will make a significant difference in the electricity bill?

SC

Sorry to crash your forum, but this is a topic that really interests me. My husband and I did some research on this and starting unplugging things like the microwave and coffee maker. Anything with a clock basically gets unplugged. We have the cable box, DVD player and TV on a surge protector that we turn off at night. The internet is also off when it is not being used. Chargers that are not being used still use energy if they are plugged in. We noticed a difference in the electric bill. It's small, but hey, money adds up!

For heating, we've put insulation in the attic, put in a new boiler (it literally paid for itself in less than 3 years), put in new windows and a programmable thermostat. Pipe insulation really helps as well-and it's really cheap. We did it in our apartment basement before we bought a house. That cost us maybe $20, but it saved us a lot a money. You can also save on heat by keeping the blinds closed in the winter. It makes it a little dreary, but if you have drafty windows, it is an extra barrier. (and if you're at work anyway) We used to wrap our windows in plastic before as well.

[Confucius]

Originally Posted by RaggedyAnn

Sorry to crash your forum, but this is a topic that really interests me. My husband and I did some research on this and starting unplugging things like the microwave and coffee maker. Anything with a clock basically gets unplugged.

I am going to try this...I have about 5 appliances with digital clocks in my APARTMENT!! LOL...

SummerChild...myself like so many people have become spoiled! I don't really need HBO esp since Netflix is $5 a month! And most of the cable channels are useless (think of how many times we flip 100+ plus channels, only to say - There is nothing good on). Most people only watch certain programs anyway.

But I am looking to save. I am not going to assume that my job is safe or that I don't need to save...I am going to try to stop these bad habits.

[SummerChild]

Here's an article from MSN.com today - "50 Ways to Trim Your Budget"

50 ways to trim your budget
You don't have to give up the things you love to save money. You just have to be willing to look hard. Start with your fixed expenses, then review your discretionary costs.

Lou knows his family is in a vicious cycle with credit cards. He's just not sure how to get out.

Bills and credit card payments eat up most of the Mansfield, Ohio, family's income, leaving them little left over to pay for groceries and other basics. So they wind up charging more.

"My family has about $12,000 in debt to credit card companies," Lou wrote in an e-mail. "We want to stop using these cards and get this fixed. But we are 'bridging the gap' with credit."

Talk back: Do you and your spouse clash over budgets?
Like many families, Lou's clan already has trimmed some of the obvious expenses, such as eating in restaurants. But really getting your budget in line may require rethinking just about everything on which you spend money.

Look at the biggies first
The biggest savings often lie in the areas where you spend the most money: housing, transportation, food, insurance, health care and clothing. Here are some ideas for places to look for savings.

Average household spending
Average income (before taxes)
$82,195
% of expenditures

Average annual expenditures
$62,503
N/A

Housing
$20,283
32%

Transportation
$11,338
18%

Food
$7,920
13%

Personal insurance and pensions
$7,383
12%

Other
$6,250
10%

Health care
$3,713
6%

Entertainment
$3,124
5%

Apparel and services
$2,381
4%



Source: U.S. Department of Labor, Bureau of Labor Statistics' Consumer Expenditure Survey 2006

Housing and utilities
If you're struggling with an unaffordable mortgage or rent payment, moving to a cheaper place or getting a roommate may be options. Otherwise, some ways to lower your housing costs include:

Refinance your mortgage to get a lower rate or switch from a 15-year mortgage to a 30-year loan.
Raise your deductibles on your homeowners or renters insurance.
Challenge your property-tax assessment.

More from MSN Money
The best financial advice ever
5 steps to fix a broken budget
Get ahead in a starter city
Save big with the flashback budget
Money trouble? It's your own fault


Eliminate premium channels from your cable or satellite TV service.
Drop the pay TV services altogether.
Reduce phone extras such as call forwarding or call waiting.
Cancel your land line in favor of cell service (or vice versa).
Seek a cheaper long-distance carrier (try SaveonPhone.com or LowerMyBills.com ) or switch to Internet calling if you have high-speed service.
Investigate whether bundled service (phone, high-speed Internet and cable television) might save you money.
Wash only full loads of dishes or clothes.
Use a clothesline and use your dryer just to soften air-dried clothes.
Use shades, blinds and drapes to regulate your home temperature: Keep them open in the winter to let in light and drawn in the summer to block the sun's rays.
Install a programmable thermostat so your home is heated or cooled only when you're actually there.
Don a sweater in winter and shorts in the summer so you're not overheating or cooling your house.
Switch to compact-fluorescent bulbs, and turn them off when not needed. Turn off TVs, computers and other electronics when not in use. Rob Seiss of Pearl River, N.Y., said he's constantly nagging his family to turn off the lights and TV. He also turns down the thermostat at night and when his family is on vacation.

"Now, I don't just sound like my father," Seiss said. "I am my father."

Transportation
Buying used cars and driving them for years is a great way to reduce your lifetime transportation expenditures. But there are other, more immediate ways to save, as well:

Raise the deductibles on your auto-insurance policy.
Get all the discounts you deserve, such as good-driver, good-student and multiple-car discounts.
If you're driving less, tell your insurer; you may get a cheaper rate.
Cancel collision and comprehensive insurance on cars older than five to seven years.
Investigate carpools and public transportation. Cities often have online trip planners to help you figure out the system. See if your employer offers any subsidies. Look into car sharing.
Bike or walk as often as possible.
Avoid repair bills by maintaining your vehicles properly with regular oil and filter changes.
Group your errands and, if you have more than one car, use the vehicle with better gas mileage. "Just because you have a gas-guzzling SUV," said Kevin Schilling of Kansas City, Mo., "does not mean that you have to drive it to the store to pick up a gallon of milk." You'll find more ideas in MSN Money's Save on a Car Decision Center.

Video on MSN Money
When to look for a financial adviser

Financial planner Linda Lubitz Boone discusses when you should look for an adviser and what one can do for you.
Food
Dining out consumes about half the average family's food expenditures, so eating in more often is one of the fastest ways to trim your budget. (But first, read "Big night out, small price tag.") Other ways to control costs include:

Bring lunches and snacks to work.
Cook once, eat twice: Double whatever you're making and freeze the excess for a later meal.
Make at least one or two meatless meals each week.
Avoid overpackaged, overprocessed and highly advertised foods. The closer a food is to its natural state, the less it tends to cost.
Buy fruits and vegetables in season. Also check out your local farmer's market.
Cruise through your fridge daily to use items before they go bad.
Give up a vice (smoking, drinking, soda, salty snack foods).
Use the weekly grocery store circulars to see what's on sale and plan meals accordingly. John and Carla Robertson of Denton, Texas, have turned meal planning into a family affair, soliciting input from their three young kids.

"Every weekend we sit down and make out the next week's menu," John Robertson wrote. "We refer to old menus for meals that we enjoyed, and we put together a lunch and dinner menu for the entire week. We also plan on cooking extra at some meals so that the leftovers can be used for lunches a day or two later."

Marcia Spires of New York City has another tip: Avoid recipes that require you to buy exotic ingredients you're unlikely to use again. "I'm a lazy cook on a budget," Spires declared. "I look at the elaborate recipes in magazines and count the ingredients (are they capital intensive?) and the number of verbs in the instructions (are they labor intensive?). Too high a score and I skip to the next page."


Personal insurance and retirement
You might be tempted to cut back on your 401(k) contributions to pay off debt, but that's not a good idea, if you can avoid it. Most companies with 401(k)s offer matching funds, so failing to contribute means you lose that free money. You also don't want to drop disability insurance, which protects you should illness or accident prevent you from working. Here are better areas to look for savings:

Consider "refinancing" your term life insurance; rates have dropped in the past decade, so you might be able to qualify for a lower premium.
If you have a long-term disability policy, investigate the savings if you opt for a longer waiting period to reduce premiums (if you have an emergency fund or other income to bridge the gap).
Suspend contributions to annuities and other accounts that don't offer matching funds or tax breaks.
Make sure you got proper tax credit for last year's retirement contributions if your adjusted gross income was less than $25,000 (for singles) or $50,000 (for couples). The retirement tax credit of up to $1,000 for lower earners is one of the most overlooked tax breaks, said MSN tax columnist Jeff Schnepper in "10 big deductions too many people miss." If you deserved this break but didn't take it, it's worth amending your return.

More from MSN Money
The best financial advice ever
5 steps to fix a broken budget
Get ahead in a starter city
Save big with the flashback budget
Money trouble? It's your own fault

Health care
Medical costs are rising at a rate much higher than general inflation, while employers are asking their workers to shoulder a bigger share of the expense. You can fight back if you:

Buy generic drugs.
Look for free and low-cost clinics.
Use urgent-care clinics rather than emergency rooms whenever possible.
Ask for discounts when you pay cash.
Carefully review hospital bills for errors.
Monitor insurance claims to make sure they get paid.
You'll find more information in MSN Money's Health Insurance Decision Center.

Video on MSN Money
When to look for a financial adviser

Financial planner Linda Lubitz Boone discusses when you should look for an adviser and what one can do for you.
Clothing and services
Professional organizers say most people wear just a fraction of the clothes they own. If that describes you, consider selling stuff you don't wear and being more careful when you shop. You can also trim what you spend on personal care and other services. For example:

Find out what looks good on you and stick to classic styles that won't look weird next season.
Inventory your wardrobe and buy pieces that work with what you already own.
Avoid dry-clean-only clothing.
Make hair appointments at beauty schools rather than full-priced salons.
Drop your health club and form a walking or jogging group with friends.
Hold a clothing swap with friends.
Ask friends and relatives for hand-me-downs.
Give kids a clothing allowance or offer "matching funds" for what they want to buy.
Check out consignment and thrift stores for lightly used items. "I always go once a month to a thrift store not far from my neighborhood," said Rebecca Kelly of Holiday, Fla.

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HTMLPlain TextLearn more about newsletters"On Wednesdays, they have 50% off all the clothing. It takes a good two hours of time, but I've averaged (spending) about $30 per child, per season. If I were to buy the same clothes at a department store, I would be WAY out of my budget."

Liz Pulliam Weston's new book, "Easy Money: How to Simplify Your Finances and Get What You Want Out of Life," is now available. Columns by Weston, the Web's most-read personal-finance writer and winner of the 2007 Clarion Award for online journalism, appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.