Financial Makeovers for 2009

Steve Juetten of Juetten Personal Financial Planning LLC in Bellevue, Wash., recommends that those in credit card debt start 2009 with a specific goal. "For example, get rid of at least one credit card with a balance owed by April 1 and another by July 1. Then track your progress."

Jeff Kostis of JK Financial Planning in Vernon Hill, Ill., agrees that goals should be specific rather than general, and says to include rewards along the way to celebrate successes. "For example, you may want to treat yourself to a Starbucks coffee if you are able to save the $25 every week for four consecutive weeks," he said.

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Reduce expenses: To spend less than you make, of course, you need to either make more money, cut expenses or some combination of both.

On the expense reduction side, Regina Galvin Ballinger of Ballinger Financial Services in Needham, Mass., makes two suggestions.

First, review your bills for cable, Internet and telephone services and look to adjust these and compare pricing by competitors to find a less expensive solution. Together, these bills can easily exceed $200 a month, a large chunk out of any family budget.

Second, Ballinger recommends scheduling an energy audit with a local provider "or at least install a programmable thermostat."

Fort Meyers, Fla., financial planner Kathleen Campbell recommends another potential source for trimming household expenses that many of us may not have considered: homeowner's insurance.

"With housing values and construction costs significantly lower, many homeowners may actually be paying for more insurance than necessary," said Campbell, owner of Campbell Financial Partners LLC. "Check your homeowner's insurance policy to determine whether you are paying to insure a higher value than necessary."