The economy is in a crisis situation and the costs of everything are rising and falling at record speeds. People are having a great deal of trouble finding the funds to pay for the necessities of life, most especially energy costs. Not very long ago everyone was talking about the price of gasoline on a daily basis. Once gas prices went over $4.00 per gallon, consumers everywhere were trying to find ways to cut back. Many were even canceling planned visits to family and delaying vacations. Car pooling became temporarily very popular although I do believe, even with the current drop in prices, people are still giving a good deal of thought to their travel plans.

The costs of electric have also been skyrocketing and have not shown signs of slowing down recently. The Energy Department has stated that heating oil prices have been greatly reduced since last winter, but are, again, on the rise with a very large increase since February. Homeowners are looking for ways to fight back and many are taking advantage of the opportunity to lock in the price of power for from one to two years. This, of course, is wonderful for budgeting your finances and enables you to calculate in advance what size bill you should be expecting. The problem, however, is what will happen if the cost of electric becomes less and you are locked into a higher price? You cannot simply request the lower price as you have signed a commitment and must honor it.

An example of locking in prices that did not work out well is a heating oil supplier in the New England area who offered to lock-in prices to his customers last summer, when fuel was more than $4.00 per gallon. Many people signed a contract because they were afraid of just how high the price could go. By the middle of last winter, the price was approximately $2.00 per gallon and many expected the dealer to cut his prices to them. The dealer, however, had a similar fixed-price with his wholesaler, and had guaranteed that he would purchase a specific amount of oil at the fixed price. It was not possible for him to accommodate all of the requests he received from his customers for lower prices. Unfortunately, this offer, which was meant to improve the dealer’s relationships with his customers, actually backfired and left many customers feeling cheated, although the dealer did not do anything wrong.

Americans have found numerous ways to cut their expenses during the current recession. We have readjusted our thinking as to what we actually need, and have learned to cut back on many everyday expenses. Our children are also learning to make do with less, and these lessons seem to be very good for everyone. Families are spending more quality time together and children are again learning to play with others in an unstructured way. The real question is, when the economy improves, will we return to our old purchasing patterns, or will we stick with the new ones we are currently using?

Many consumers who have been questioned about this, truly believe that they will continue with the lessons they have recently learned about living with less. The “green” movement also contributes to this new attitude. We are all re-evaluating our excessive lifestyles and realizing that frequently, less is more.

During the Great Depression, 25% to 30% of the workforce was unemployed. It became necessary that people adjusted to living meagerly and, in many cases, this continued throughout the years, as they were always saving their money and being very careful about any purchases they made. They would save for years in order to purchase a car or new appliance for cash. They didn’t want anything to do with credit and believed they should only purchase what they could afford at that time. The only exception was probably a home.

Today’s consumers have been learning new ways to save on an almost daily basis. Coupons have become a way of life and many of us will not shop unless there are good sales being offered. I recently visited the local library and was surprised to see that they have a coupon box at the circulation desk, available for their patrons. This is just one more new little way that people are helping one another to save.

Although consumers may gradually return to restaurants and upgrade some of their purchases, it is thought they will remain more conscious of their spending habits. The area most likely to be hurt will probably be the purchase of luxury items. It may take a long time before we are ready to return to the true luxuries we have had in the past.

Inflation is up, prices are rising rapidly, and people are being furloughed from their jobs, resulting in lower salaries. How do you make ends meet when you are earning less and everything costs more? One suggestion might be to find a source of additional income to help balance your budget. Several possibilities follow:

Pet sitting and pet walking can pay well and take up very little of your time. If your neighbors are working full time and the family pet is home alone all day, they might well be happy to compensate you for taking their pet for a walk mid-day. Others may be going away and need someone to care for their animals. Many pet owners today much prefer to leave pets in their own homes, as opposed to bringing them to kennels. Frequently, kennels cost even more than you would charge. For the cost of an ad in the local paper, you may be able to start-up a business and add additional funds to your budget.

If you have a specific skill, consider teaching a course or running a workshop to share with others. Many places such as YMCAs, local churches, and adult-education programs offer courses and would be willing to compensate you.

Run errands for local people who are short on time. Charge by the hour and you can do their grocery shopping, pick-up dry cleaning, water plants, etc. Whatever needs to be done, you can be available.

Get paid for your opinion. Market research firms will often compensate you for providing feedback on a variety of subjects such as buying habits and reporting to a group to discuss product reliability.

Selling from home (yours or a friend’s) is another option. This would be the equivalent of selling Avon, Southern Living At Home products, or Tastefully Simple food products. All of these can be financially rewarding and can often be done in additional to your current job.

Selling your belongings online or at consignment shops will help you to eliminate clutter and add funds to your bank account. If you find that you really enjoy this, you may want to purchase items for resale as a means of increasing your income.

These are just a few of the ways you can supplement your income while not committing too much of your time. There are others such as tutoring children, part time jobs, and renting out a room or rooms in your home.

If you were to lose your job tomorrow, how long could you survive without your income? This, of course, depends on how well-prepared you are financially. Even if you feel secure in your current position, it is still a good idea to cut expenses and put away that extra money for a “rainy day”, no matter what form it takes.

Here are some ways to increase savings without too many sacrifices on the part of you and your family:

Consider canceling your private mortgage insurance (PMI) as this may no longer be necessary. If you made a 20 percent down payment on your home, or your equity totals 20% or more, contact your bank and request that this insurance be discontinued. Some people go on paying this premium for years without realizing that it is no longer necessary.

An energy audit and some small changes around your home could help reduce your monthly utility costs by 20% to 25%. Weather strip, caulk, consider plastic covers over windows if they are not double pane, and insulate the attic. All of these can help realize a substantial monthly savings.

Examine cell phone costs and be sure your family has the best plan for them. If you are paying approximately $20 a month for text messaging, discontinue it and tell the family to dial their friends instead.

Food shopping should always be done once a week. Every time you make an extra visit to the grocery store, you will always leave with more than the one or two items you went shopping for. Plan your meals for the week, purchase necessary items only, and do not return to the store until the following week.

Lunch out costs an average of $7.00 per day. If you eat out everyday, that’s $35 per week. If your spouse is also eating out, that amounts to a large portion of your budget. Consider eating out only once a week.

There are many ways to save when shopping and one is to visit the Dollar Store. You can find many toiletries and cleaning supplies for only $1.00 when they are usually three to four times that much in the grocery store. Visit once and you will probably return.

Potluck dinners and at home games or videos are a great and inexpensive way to entertain friends.

Plan vacations near home and make day trips to the many local sites that you have never visited.

Share child care with friends. Everyone gets some free time and there are no babysitting expenses.

Speak to your doctor about the possibility of you switching to generic drugs if medication is necessary.These are available at a fraction of the cost of the name brand drugs and are often just as effective. If a brand name is necessary for your medical needs, and if you financially qualify, they can be available for free from the manufacturer.

Plan nights out attending free local concerts. Check schedules at both parks and nearby universities to see what is available in your area.

In today’s economy, it is almost impossible to even think of requesting a raise in salary as more and more of your co-workers are being laid off. There is, however, a possibility that this raise may actually be available if you request it.

In times such as these, a trusted, extremely productive employee is very valuable to a company. Frequently, your workload has doubled due to layoffs and your employer can appreciate this fact. This is not an unreasonable time to ask for an increase but, first, you must do your research.

Research the web to find out what comparable employees are paid at other companies. Check sites such as salaryexpert.com and salary.com to determine equivalent jobs in your area of the country.

Be prepared to document all of your achievements. It is important that you have won awards and participated in mentoring young employees, but focus on what you have done to improve the bottom line. Employers today consider the “bottom line” to be the ultimate improvement. Prepare yourself to document what you have done to improve this number or to cut expenses. Either of these accomplishments are the way to an increase.

Sit down with your manager and discuss what he feels you need to do to get a higher salary. Then set a future date for discussing your accomplishments leading towards this goal. This date should be set at three to six months away.

The current economic crisis demands that all large companies review their costs and find ways to cut them as much as possible. One of the areas being targeted by large corporations today is absenteeism. JC Penney is working diligently with their employees in an effort to cut employee absences and the expenses they entail.

Hundreds of our country’s largest employers have estimated that unscheduled absences cost them over $750,000 a year in payroll. Costs are much greater, however, when you take into account lost revenue and lower productivity. Excessive absenteeism also results in lower employee morale, which eventually also affects the bottom line.

JC Penney is trying to resolve their absenteeism problem through a new program they’ve set up. The program is called Power Line and is made up of a team of employees. Any employee who will be out of work for three or more days will contact the Power Line group and the group will determine the type of benefit the employee is entitled to. If forms are necessary, these will be provided to the employee. The team then notifies the employee’s store directly. The Power Line employee follows-up with the absent employee and continues to do so until this person returns to work. Although this new system has only been in use for the past 90 days, the store believes that they are already seeing positive results.

This is just one of the many areas being investigated today to determine how else corporate expenses can be lowered. If major companies want to survive in these troubling times, they will have to make every effort to cut costs while still providing exceptional customer service.

Many people today are making their funeral arrangements in advance so that everything will be in accordance with their wishes and their families do not have to struggle through the process while grieving the loss of a loved one. These contracts are called pre-need and are sold to many with the idea that they can pay today’s prices for a product that will not be used, hopefully, for sometime. Unfortunately, this is not always the case. Consider the following before entering into such a contract:

Carefully review the fine print of the contract. Know that some items in the agreement are guaranteed while others may not be. Specifically request to have these items explained to you in detail. Guaranteed prices will not be increased; however, non-guaranteed prices may be included in the contract even though they can be increased when the death actually occurs.

It is always a good idea to have a third party review a contract before signing it. You may bring the contract home with you and have it reviewed by a family member or an attorney. Taking the time to do this now can save both money and aggravation for your loved ones.

Most survivors do not understand the contracts. They believe that everything is paid for in advance and then learn that this is not the case. Pre-need contracts often cause families more problems at the time of death than if no arrangements had been made. Because it is necessary that many non-guaranteed items be included in a pre-need contract, you might want to consider an alternative. Visit your local bank or credit union to inquire about a Totten Trust account. A Totten account is payable-on-death to the named beneficiary. This account remains in your name and you earn interest on the account. You are free to move or close the account at will as you have no contractual obligations and the funds will be immediately available to your beneficiary.

The stock market is plunging at record speed, your checking account balance is much lower than normal, but there is one thing that is rising rapidly. It is the discounts being offered at the local shopping malls. They are increasing daily and, of course, you are extremely tempted to visit and take advantage of this great opportunity, especially now when you have a long gift list and want to make everyone happy. There are some precautions you should take before visiting the mall and spending all of your money, or running up credit card debt that you will be paying for many months from now.

Before you go to the mall, be sure to eat. Eat any meal you want, but do not shop on an empty stomach. Most of us know that we should never visit a supermarket hungry as we will buy all sorts of additional things. The same holds true for mall shopping. Statistics prove that hungry shoppers spend 40% more than those who have full stomachs.

Never shop with your children. Leave them at home and you have instant savings. Once they accompany you, the requests are endless and you eventually give in to buying them something. They will haunt you about what you do not have and cannot live without. Don’t even think about bringing them along.

Before leaving the house, make a list. This is of the utmost importance. List the names of those you want to buy gifts for and the gift you feel is most appropriate. Check the comparison shopping sites on the computer for the best deals and visit those stores. This way sale signs will not divert you from your shopping goal.

If you do not need an item and it is not on your list, do not buy it no matter how much the discount. Remember, if you do not buy it at all, you will have saved 100%.

Do not cut out gift giving. It is much better to scale down the gifts. If you have a large family, encourage each person to pick a name out of a hat and buy only for that one person. This is a great way to have a gift exchange without spending a large amount of money.

In today’s economy, unemployment levels are increasing on a daily basis. The majority of these people have never been unemployed before and do not know how to approach this new time in their lives. Unemployment causes much turmoil, often resulting in depression, family stress, and a severe drain on your finances and net worth.

While spending a great deal of your time looking for a new position, it is also important that you continue to productively use your time. An interviewer, seeing a large gap in your resume’ since your last day of employment, will likely inquire as to what you are doing these days to keep up with your peers. Obviously, they know you have been job hunting and just what that entails. It would be beneficial for you to be able to say that you are taking a few courses relating to your specific area of employment, or that you are volunteering locally. Volunteering can often result in improved people skills, newly gained knowledge relating to the position, and contact with people who may possibly be able to help you find a new job. Networking is one of the most important things you can do when seeking employment. The more exposure you and your situation have to others, the more likely someone will step up to help you with an introduction or a recommendation.

In addition to the benefits you will receive from taking classes and helping others, you will find yourself busy learning and working so that there will be little time left for the negative side effects of unemployment. If you take the right approach to this time in your life, you will most likely feel better about yourself, which will result in others seeing a strong person who can handle this traumatic time in his life.

If you are among the many who are still comfortably employed with a healthy and successful company, you may well find that your employer offers benefits you do not even know about. Of course, you are most likely taking advantage of the health insurance policy offered, and making regular contributions to your 401K, but a visit to your company human resource department may help you learn about other opportunities available to you.

Because your employer considers your physical health important to the company, many today offer their employees on-site gyms, reduced membership fees at local gyms, or a possible partial reimbursement for their individual annual membership fees.

With the cost of commuting constantly increasing, some employers are trying to assist their employees. One way this is done is through the Qualified Transportation Benefit. An employee is permitted to put pre-tax income into a special account which can then be used to pay for parking and/or public transportation.

Many companies offer discounts to their employees on products they make, or on items they can buy in bulk, sharing the benefit with their employees. One company I recently read about is encouraging their employees to purchase hybrid cars by offering to give them $3,000 after they have purchased the car.

Some employers allow their workers to assist one another by donating unused paid time off into a pool for emergencies of co-workers. This is a great way for employees to work as a team towards a common goal while supporting one another in their time of need.

Tuition reimbursement has been a benefit offered by some employers for many years. New people, however, are not always aware of this opportunity. The company is encouraging you to continue your education and is willing to financially assist you up to specific limits. This is a great way to increase your knowledge and gain additional training at no cost to you and your family.

Consider all of the above and then make an appointment to sit down with a human resources representative to discuss these and any other benefits available to you. It will be time well spent.