Chances are, you spend a lot on gas and on your home energy bills during the winter. In these times, it becomes even more important to cut back on spending on these basic expenses. There are ways to save everyday without giving it too much thought!

First, make a budget. On a piece of paper, break down your expenses into categories (including food, transportation, child care etc...) on a daily and monthly basis. You will start to see where your money is going and will be surprised! Figure out what is a need and what is a want. Cut down on the want items, and next attack the need items. Need items include food, gas and energy. See the advice below on how to cut spending on two of the most important expenses - heating and gas. They might seem like fixed monthly expenses, but in reality can be adjusted.

Heating and Energy:

Families in the Northeast can expect their yearly energy expenditure bill, including heating and cooling, to total up to $3,000. For those in the Midwest, make that $2,000, and $1,600 for families in the Southern parts of the country. Ask your oil company for a budget that levels off payments so that they are the same throughout the whole year. They may have a cap plan as well. 

• Sealing drafts on your windows and walls, especially if you live an in old house, can save between 5 and 30% on your bills, amounting to as much as $10-40/month! Walk around with a candle to see where the smoke goes to identify where drafts are coming from.
• Turn down the thermostat; each degree saves 1-3% on your bills. Opt to use more clothing if necessary during the winter months. A programmable thermostat can pay for itself and save you up to $150/year.
• Call your energy company or look on your state's website to find companies that conduct energy audits. They are FREE and can help you identify where to make energy repairs. State websites often have programs and assistance to help you pay your bills and cut spending.  

For more energy advice: Low Income Home Energy Assistance Program, National Energy Assistance (NEAR) at energyassistance@ncat.org, Citizens Oil Heat Program at 877-JOE-4-OIL. Good Neighbor Energy Fund Salvation Army at 800-334-3047.

Gas: 

It is important to save on gas and be prepared for unexpected price rises in this volatile economy. To save on gas, follow the tips below:  

• Modify how you drive. Use a moderated steady speed instead of start-stop motions. Accelerate moderately with a "light foot".
• Make sure you keep up on maintenance. Regularly check your tire pressure, wheel alignment, brakes, and air filter. If you can, use a good brand of engine oil.
• Unpack your car. Those belongings that you're stowing away in the trunk add on extra weight that can cost you money! Every pound of excess load costs about 1 gallon of fuel in 100,000 miles.
• If you are looking to buy a car, buy one for everyday use. If you plan on taking longer trips at some points, rent a car instead. If you are an urban driver, use a hybrid with a smaller engine. If you are a highway driver, use a turbo with a smaller engine.
• Get a cash-back rewards credit card. They often offer 1-3% cash back for gas purchases! 

General Spending Tip: Beyond creating your budget, try keeping a spending diary for at least two weeks where you write down all your expenses every day. This will give you a more comprehensive and detailed view of where you can reduce spending. 

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