Keeping Your Home, Surviving Your Mortgage

One report says that about $1.3 trillion in existing mortgages will face an interest-rate reset by the end of 2008.

Suze Orman says you gotta restrain yourself from buying things you don't need.

Every time you find yourself one click away from an online purchase, I want you to ask, "Why am I buying this?" Often the answer will be, "Because it's just $20." You know what I mean: The rationalization that a small purchase is no big deal in the grand scheme of things. Well, it can be a very big deal. Stop spending just $20 twice a week, and you'll have $160 in monthly savings.

Give yourself a (tax) break

A refund is nothing more than Uncle Sam returning money you overpaid. Adjust your withholding so that you don't have more deducted from your paycheck than is required (or if you're self-employed, rework the numbers to make sure your estimated quarterly tax payment is correct). Online tools can help you calculate the exact amount. Just type "withholding calculator" into a search engine. Try to estimate carefully, and remember that it's OK to owe the IRS a small amount at the end of the year.

Shoot for a high score

Reducing the interest rate on any credit card with a balance is another great money-saving tactic. Transfer your balance to a card that offers an introductory rate of 0% for the first 12 months. Credit-card issuers that offer the zero rate reserve their best deals for consumers with the best credit scores, so yours needs to be at least 760 (find out your FICO credit score at myfico.com). If your score is below 760, make it a priority to nurse it up by paying your bills on time, even if you're making only the minimum payment.

The best policy

Opt for higher deductibles on your auto insurance policy, and your premiums could go down 40%.

Also, you can shave up to 15% off your overall payment by buying your home insurance and auto coverage from the same provider.

Don't kid around

I know there's nothing you wouldn't do for your kids. But in saying yes to their every spending request, you're doing them a disservice. Scaling back on mall trips is both good financial management and good parenting. And if you happen to have teenagers, well, this is a perfect time to introduce the concept of a part-time job.

Less is more

I can pretty much guarantee you'll find $100 a month in savings if you scale back on unnecessary expenditures. Pore over your bank and credit-card statements for the past year and weigh each withdrawal or charge. That premium cable package is probably draining $30 or more that could be better used toward your mortgage. Perhaps long walks or runs and some at-home lunges could substitute for the gym membership you barely use anyway.

Keep in mind that you won't have to forgo these luxuries permanently — you're simply looking for ways to cover your mortgage until the rates go down again. Right now, that requires homing in on every opportunity to save, big or small.