Tighten the belt in 2010

Here is a common myth related to money that, once dispelled, might save you some:

Myth: Everyone needs life insurance.

Reality: Not necessarily. The primary use of life insurance is to protect your income. If nobody depends on your income, and no one would be financially distressed if you died, you might not need it, says Amy Danise, senior managing editor of Children, single people, retired people, wealthy people and even dual-income couples without children might not need life insurance. "Why pay premiums for something you don't really need?" Danise said.

However, you might want life insurance for other reasons, such as providing an inheritance to children or donating to a charity.