Trim Expenses While You Trim the Tree

The holidays are typically a time we think about spending money, not cutting expenses. But let's face it, you're going to have to pay for all those shiny new packages under the tree (or whatever holiday icon you choose to celebrate).

You've heard all the standard ways to cut costs: don't buy Starbucks, take a bag lunch, and so forth. But you can get a lot more creative with slicing and dicing the way you divvy up your financial pie. Some of these trimming tips may be familiar to you and some may be new, but if you follow through on them, you're sure to shake loose a few more dollars that can be spent on whatever you value the most.

1. Watch out for shipping costs when buying via the Internet. Use the Internet to comparison shop, then pick up the item locally.

2. If you see something in a catalog that you want to buy, wait a week before ordering to see if you still really want it. (But don't wait too long or your holiday gift may not make it under the tree in time.)

3. When traveling, look online for ideas and/or coupons before you go. Once on site, ask the locals for low-cost favorite spots, a la Rachael Ray.

4. Try a vacation at home. See and do the things you've always meant to do and save on hotel costs. The holidays are a perfect time to enjoy local festivities.

5. Send free e-cards and save on postage.

6. Give your time or services instead of "things" for gifts.

7. Go gray. If you hate sitting with gloppy color on your head and paying an arm and a leg for the privilege, you should know that as the baby boomers age, gray is "in."

8. If you own a house, shift your higher-rate credit card debt to a lower-rate line of credit. Deduct the interest on your tax return.

9. If you own a house, use a home equity loan to pay off auto loans. The interest is tax-deductible.

10. Pay your mortgage payment biweekly instead of monthly--you'll save on interest costs and pay off your mortgage sooner.

11. Pay extra premium payments when paying your mortgage. As above, you'll save interest payments and be able to pay off your mortgage sooner.

12. Pay cash when possible--psychologically it's harder to spend cash than using credit cards, and you'll save on interest charges.

13. Set up one checking account for regular recurring expenses and another for bigger-ticket items. (Only buy if you've saved enough.)

14. Check with state or federal governments to see if you have money owed to you. To find out more about claims in your state, go to the National Association of Unclaimed Property Administrators' Web site.

15. If you've inherited an IRA, understand how to stretch out the tax deferral by taking the correct minimum required distribution.

16. Don't get divorced.

17. Quit smoking.

18. Save all your change and use it to buy gifts next year.

19. Go to matinee movies instead of movies at night.

20. Stop buying clothes that are "dry clean only." Learn to iron.

21. Plan parties where everyone brings something.

22. Have cocktails at home and then go out; have dessert at home.

23. Order vegetarian when you're out.

24. Look up phone numbers in the phone book instead of paying for directory assistance.

25. Sell stuff you don't need or use anymore on eBay.

26. Shop resale shops or estate sales.

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