20 Steps to Toughen Up Against Hard Times

Harder times appear to be on the way, even if lawmakers succeed in unclogging the nation's credit system. It's time to look around our homes and do what we can to cut costs, avoid unnecessary repairs and preserve cash.

Normally I would add "cut debt" to the chore list, but I'm not convinced that's the smartest strategy during this anything-but-normal period. New loans are hard to come by. If you can comfortably manage the payments on existing debt, you may be better off sticking to your regular payment plan and saving the cash that would have gone toward prepayment.

If you're already struggling under the debt burden, however, put every effort into paying off those loans right away so you could better manage a short spell of unemployment or another hardship.

Here's a 20-point to-do list that reflects the sort of habits our parents and grandparents developed growing up in the '30s and '40s, but which many of us have let slide in this busy, busy era. Fix things now so you won't have to replace them later. Buy only what you need. Wring every drop of comfort and conviviality from the home you already have.

I invite readers to add their money-saving ideas in the comments section accompanying the column on washingtonpost.com.

· Take a break from mortgage prepayment. Just in August, I advocated prepaying the mortgage as an alternative to risky stocks. But the money world has changed. Keep your cash where it would be easy to get at -- in an FDIC-insured bank account -- should trouble arrive at your door. If you weather the recession without needing the money, great. You can use it later for a lump-sum prepayment and get back on track toward early payoff.

· Consider borrowing from an existing home equity line of credit -- but with caution. Let's say you were planning to tap your equity line to pay a big tuition bill six months from now. With credit availability so uncertain, go ahead and use your equity line, and deposit the cash in the bank. Sure, you will pay more in interest, but you will be able to make that tuition payment even if the bank reduces or cuts off your credit line unexpectedly.

· Add movies to your cable TV plan or sign up for Netflix. Yes -- spend more. You have to have some entertainment, and Netflix charges only $17 a month for its three-at-a-time unlimited movie-rental plan. It beats $22 plus popcorn for a couple to visit the local gigaplex just once. And you don't have to listen to strangers yammering.