A huge mistake people make is dropping insurance to save money. That is just a recipe for disaster. Don't do it. Instead of dropping expensive insurance, just reduce the cost by shopping for a less expensive plan.

Insurance cost reduction involves an insurance review for home, car, life and medical costs. Take a few minutes right now and ask for lower rates from at least the two places listed below. You may be very surprised at how much you can save. Even if you discover that you already have the lowest cost policies, you will get confirmation you are doing the right thing. A very smart thing to do.

Step 4: Find Out How Much Your Home or Condo is Really Worth. Think About a Lower Mortgage Payment

It might be the right time to refinance or even consider moving. Saving money with a lower mortgage payment or smaller mortgage might be the one best step you can take to save hundreds of dollars each month.

If you are planning to move in the next three to five years and your home is still rising in value then an interest only loan may be a good move for you. It can dramatically lower your mortgage payment. The only negatives are that you are not paying down the mortgage. On the positive side your house will continue to appreciate normally and you get to stay where you are for a lower cost. When you move the loan will be paid off in full anyway.

Get a real value for your home, and not some guess. I'd suggest using the online Instant Home Valuations service.

If you are not planning to move in the next few years, it is still not too late to look at your refinancing options. Here are a few links you can visit to see if one of them might have a program that feels right for you.

Step 5: Increase How Much Interest People Give You

With interest rates on saving accounts so low it pays to put your money in a higher returning account. Over the years I have always been very impressed with The Orange Savings Account from ING Direct. Great rates, no fees, no minimums. In fact many of my friends have accounts with these folks and we all have had great experiences and earned a very high rate of interest. Hey, I look at it this way, if someone wants to give me more money for letting my money sit there, I'd be a fool to turn them down.

ING Direct is an internet bank. Even though they don't have any local branches you can easily transfer money back and forth from your regular account. You can even set up an automatic monthly savings plan. Put it on automatic and watch the cash build. Many clients love this approach because they are able to set aside $50 a month and by the holidays they have $600 plus interest just sitting there for presents. It is super easy, mindless and you get a higher return than you will locally. Smart thing to do? I think so. Click here to open a savings account today.