Suze Orman Money Matters

There's another big housing bill in your future. No, I'm not talking about your potential taxpayer share of the recently passed federal housing bill if we ultimately get stuck with the tab for bailing out Fannie Mae and Freddie Mac.

Prices Heat Up

What's on my radar right now -- and should be on yours -- is what it's going to cost to stay warm this winter. I realize it's probably sweltering where you live right now, but, as with all financial matters, you need to look down the road to see what might be coming up. And the news is not good, my friends: The same pain at the gas pump you've been dealing with for months is going to play out in your home heating bills.

According to the Energy Information Administration (EIA), a gallon of heating oil this winter could be 40 percent more expensive than it was last winter. And it's not as if last winter's heating bill was cheap; if the EIA forecast plays out as expected, a gallon of heating oil will be about 85 percent higher this coming February than it was two years ago.

Not worried because you use natural gas? The news is just as bleak, as prices are forecast to be about 45 percent higher this coming winter. Those of you relying on propane could face an even steeper increase. Electricity? Well, it's going to be a relative deal: The forecast is for retail electricity to be just 10 percent higher this winter compared to last. But let's face it, that's still a steep climb.

Clearly, it's time to get serious about a strategy for managing this winter's higher heating costs. Here are some steps to take:

• Get On a Manageable Payment Plan

Check in with your utility company now to see if there are any special payment plans available to avoid bill shock in the depth of winter. You may be able to switch to a plan that spreads out your payments across the entire year rather than having a big hike in the winter.

Of course, that means a higher average monthly bill in the temperate months. But the idea is that your budget can handle that easier than a huge hike in the winter.

• Winter-Proof Your House

Spend a day getting your home ready for winter to trim a few hundred dollars off your energy bills. I'm not going to suggest big-ticket projects such as re-insulating the roof; that's a great cost-saver over time that makes tremendous sense if you have the money to do it, of course, but your budget is probably already pretty stressed right now. I'm talking about small outlays that can net you big savings.

Start with the programmable thermostat. If you get strategic about lowering the temperature in the day when you're not around and late at night when you're tucked under the comforter, you may be able to cut your heating costs by 20 percent. That can go a long way toward offsetting this year's higher utility bills. You can pick up a programmable thermostat at any home-improvement store for $50 or so.

While you're at the store, pick up some caulking and weather-stripping supplies. Spend a few hours plugging up any gaps in your heating ducts and blocking out window and door drafts. These steps will save some serious money.

• Look for Hidden Savings Opportunities

I'm not a big fan of penny-by-penny budget-watching -- life is too short and free time too fleeting to spend it poring over a spreadsheet. But I do think everyone should take a serious look at their spending patterns at least once or twice a year and reevaluate their position, especially right now, when living costs are through the roof.

You know where I'm going with this: A cell phone plan or cable plan that may have been affordable a year or two ago could be a great place to find some hidden savings to deal with today's budget crunch. I bet many of you could easily reduce these bills by a combined $100 a month if you shifted to a less-inclusive plan. So no more inertia, no more excuses: Go online or brace yourself for an annoying call to customer service and get the switch done today.

If you have an emergency savings account to handle any unexpected costs, I'd also recommend you look into raising the deductibles on all your insurance coverage. It's a great way to reduce your premium costs by at least 10 percent. Again, it takes one call to lock in permanent savings.

• Give Yourself a Break for the Holidays

Talking about winter gets me thinking about the holidays and the gift trap I see so many of you fall into. Invariably, in January and February I'm inundated with calls and emails from people with an expensive gift-giving hangover: They're staring at big credit card bills they have no way of paying off.

If you wait until December to start thinking about holiday gifts, chances are you'll just whip out the card and make plenty of last-minute purchases. An alternative is to rope your family (and friends) into a conversation now about how you can all come up with a more manageable gift-giving plan.

Having a talk now, months before the holiday frenzy, makes for an easier conversation. Don't be shy or apologetic -- living within your means is something to be proud of. One obvious move is for all adults to agree that they don't need to exchange gifts. Keep the focus on the kids. But really, does every aunt, uncle, and grandparent have to shower every kid with a gift? I don't think so. How about one special group gift to each child instead?

Don't worry about what the kids will think. Spending more money than you can afford on gifts for them isn't a sign of love. Besides, instituting a new family-wide tradition that takes planning and thought and involves everyone is the sort of positive energy that should define the holidays. To say nothing of the financial benefit it will produce this winter, when energy costs are sky high.