Spend Less And Still Live Well

Can you resist overspending, get out of debt — and still live the good life?

Yes, says Redbook magazine Executive Editor Alison Brower.

She explained how to dress well, eat well, and live in comfort on a smaller budget in 2008, as well as how to determine your personal spending priorities, on The Saturday Early Show.

Brower says being frugal doesn't mean being cheap. You can tighten your belt, save money, and still maintain a solid standard of living.

Her words of wisdom, and those of fellow Redbook editors:

Determine Your Top Priorities

Whether it's the safari fund or the college savings account, the secret to living well on less is determining your personal spending priorities and putting the money there first.

Have a clear, single purpose guiding you as you change the way you spend your money. By zeroing in on that one motivation — whether it's staying home with your baby or traveling around the world — you can keep your resolve to walk past the coffee shop and find the energy to switch to a cheaper cell phone plan.

Find Smarter Ways to Spend Less on Things You Want

For instance, keep the date night, but choose a more affordable restaurant; keep the housekeeper, but use her every other week instead of every week.

When your values are steering your spending, you'll no longer feel that insatiable need for more, more, more.

Visit Web sites that can help you save

For example, Freecycle.org, where more than 4 million people list items they no longer need — everything from TVs to bicycles — and are giving them away for free. Grocerygame.com tracks sales and specials at grocery stores around the country. For $10 every two weeks, it will e-mail you customized store locations and tell you which coupons to use where. Hunt for clothing bargains on Overstock.com and SmartBargains.com

When is a bargain not a bargain? What should people skimp on and what should they save on?

Toiletries: Skimp

You don't need to spend a lot for high-end skin creams. All major manufacturers, including lower-priced brands, develop and test their products in state-of-the-art laboratories and use the same set of active ingredients.

Cashmere: Splurge

If a $30 cashmere sweater seems too good to be true, it probably is. Higher-priced cashmere sweaters typically use better yarn and a tighter knit than bargain cashmere. The result: stronger sweaters that are more resistant to tears. To avoid rip-offs, stick with big department stores such as Macys, where they test fabric quality.

Dry Cleaning: Splurge

You're taking chances when using do-it-yourself dry-cleaning kits. Only a dry cleaner can give clothes that good-as-new look.

Phone Service: Skimp

If you're paying for both Internet and unlimited long-distance, you could save $20-40 a month by switching to Internet phone service. Companies such as Vonage and Skype offer unlimited long distance via the Internet for around $25 a month, compared with $40-50 for landline phones.

Savings Tidbits

What You Could Save In A Year If You: