Mary Malgoire

What's the best way to reduce my everyday expenses?

If you are serious about reducing daily expenses, try the cookie-jar approach. The idea is to set an amount for daily expenses over the course of, say, two weeks. Put the cash you will need into a cookie jar. Then, leaving credit cards at home, draw from the jar only as much cash as you will need for the day. (Stash $20 to $50 somewhere in your wallet for emergencies.)

If your financial plan calls for reducing living expenses by more than 10 percent, reducing everyday expenses will probably not be sufficient. Instead, expect to make trade-offs with big-ticket items: downscale your vacations, drop expensive subscriptions, eliminate a car payment or high gas bills by using public transportation.

Expect that the outcome of these efforts is an ever-increasing checking account balance. This is great but doesn't do you much good unless you use the extra amount wisely. Can you increase your 401(k) contribution? Or pay down debt faster?