Whether you own one, two or more vehicles, this item can save you quite a lot each month. First, if you have two or more cars, do you need that many? Yes, we know it is more convenient, but is it really necessary. Again, there was a time in this country (which still exists in other countries) when families did share things. Is your work and your spouse’s work close enough that you could commute together? Just because your hours are different by a half or a whole hour does not mean you cannot share a ride. It just means one of you will get to work earlier then usual or leave later then usual. Or you can arrive and leave at the usual time but spend the extra time reading a book. If this seems difficult to you, remember that by cutting back to just one car, you will be cutting your car expense (including payments, gas/oil, insurance, and annual registration) in half. That would mean a savings of as little as $500 a year (if one car loan is already paid off) up to as much as $505 or more a month ($350 car loan payment + $100 for gas/oil + $50 insurance + $5 registration). This would be a savings of $6,060 a year.

If this is impossible due to working in opposite directions from your home or one of you works days and one nights, can you commute with someone else or take public transportation to work? Yes, this can be inconvenient and there will be times when your ride does not show up but when that occurs you could still share a ride with your spouse once in awhile. Or what about setting up your own car pool in order to keep your car? That is, find others at work who live near you or live in your general direction that can meet you at a particular place and ride in with you for a couple of dollars a day. Alternating whose car you use each week will still save you some gas money.

Another very important consideration today is whether to give your 16 year old their own car. No, we do not support this idea. Our family has always shared. Giving your teenager their own car is a huge additional burden on a family and doing so can make it easier for your kids to get into trouble. At least you can cut down on the possibility of trouble by insisting that the kids do their homework between school and when you get home from work and then they can use the family car one or two evenings a week to go out.

Again, depending on which method you decide on, you can save from $100 a month (commuting with fellow workers) to $500 or more a month (cutting back to just one car).

Another problem that we have seen is the individual who buys a new car and then finds that he cannot make the monthly payments due to unemployment, illness, etc. When this happens, rather than wait for the bank to repossess your car and ruin your credit rating, first tell the bank what is happening and what you have planned. Then sell the new car in order to pay off your bank loan and buy a used car. Yes, you may have to get by with an old beatup car for awhile but you will be able to sleep a lot better.

During a recession business owners are looking to reduce debt and practice wise debt management and some are tempted to make reductions in their insurance coverage as a way to reduce debt. This is not wise debt management and could even cost you your business entirely if you are caught underinsured or have decided to forego insurance altogether.

Understandably, during tough economic times such as we are experiencing people are tempted to cut costs in their budget areas that seem untapped year after year, such as insurance, where many business owners go year after year without ever filing a claim.

However, with the spring flood season coming up and the soon after tornado and hurricane seasons to follow and don’t forget the everyday threats such as fire, theft, injury liability, power outages, etc. the list goes on. These examples are just reminders that while you may need to execute better debt management and reduce your debts insurance is not the way to go about it.

Due to the mortgage crisis and falling real estate prices many business owners may be thinking they are now over-insured and seek to reduce debt by reducing the amount of coverage they are carrying on the properties assessed value. There may be some truth to that matter, but it is important to seek a professional’s advice in order to determine if you can in fact reduce your coverage.

Another area of concern is the number of people who through loss of their job have decided to work for themselves from home, while struggling with their personal debt management they do not want to incur any additional debts to pay, however if you now have customers or work associates coming into your home you will need to determine whether you will need additional coverage for liability on your residence. It may be inopportune to have to increase your coverage but it would be much worse to lose your home due to a liability lawsuit.

These are indeed troubling times and we are all struggling with debt management, but these troubling times will pass, and when they do you want to be left with a business or home intact. There are a number of resources to assist owners to know that they are adequately insured as well as having the appropriate type of insurance. You can go to The Insurance Information Institute to receive help in determining the types of insurance required by specific industries, they’re site can be found at www.iii.org/individuals/business.