Check insurance policies for savings

While insurance is a necessary expense in just about every budget, it is one worth examining in tight budget times.

You can get a break on car insurance for good behavior. Ask about discounts if you've gone a certain number of years without an accident or ticket, store your car in a garage or drive less than a certain number of miles each year.

If the kids have left for good, take them off the policy; if they are simply away at college, ask about a distant-student credit.

Look at raising deductibles on car and home insurance and switching from monthly payments of insurance premium to annual payments. Only you know if you are disciplined enough to save the lump you'll owe your insurer each year.

Also, see if you can get rid of private mortgage insurance. If you have 20 percent equity in your home, you could qualify to start saving that money.

CHECK INSURANCE POLICIES FOR SAVINGS