The Dow's up, but so are job losses and credit is shaky. Start saving cash now to pay your way through the holidays

The good news: The Dow soared 11 percent yesterday, successfully encouraging several overseas markets to surge along with it, suggesting all might not be as bad as it seems. The bad news: GM announced yesterday it would cut 1,340 jobs and Pepsico plans to eliminate 3,300 jobs, suggesting it still might be a good idea to live frugally this holiday season.

And don't plan to rely on credit cards to help cover any overspending. An MSNBC Red Tape Chronicles story today reports that surprise interest rate hikes and fees will make people more likely to default on their loans.

A much better idea might be to start saving money today to pay for holiday expenses. The Baltimore Sun this weekend ran a story offering ways you might cut back on expenses and save as much as $1,000 in the next three months. Tips included:

save a grand

Here are some tips from experts on how to save at least $1,000 by the end of the year:

•Stop charging and pay with cash. Counselors say that people who pay for purchases with cash typically save about 20 percent. Estimated savings: If you charge about $1,000 each month, about $600 over three months.

•Don't discount your pocket change. Each night, empty your change into a jar. Or, save the change each time you break a dollar bill. Estimatedsavings: $30 to $50 a month, counselors say, or at least $35 over three months.

•Wash your own car, says Jim Ludwick of Main Street Financial Planning. Estimated savings: $60 over three months.

more ways to save

Here are some more ways to save $1,000 by the end of the year

•Lower your food costs. Take your lunch and coffee in a thermos to work instead of buying it daily. Plan meals for a week at a time and make just one weekly trip to the grocery to reduce impulse buys. Estimated savings: $300 on lunch alone, over three months.

•Carve $10 a month from five spending categories that are not fixed: For instance, eating out, (order water to drink or cut back on dining out) shopping, (shop at malls only when an item is needed) and utilities, (lower the thermostat at home; turn off lights or unneeded appliances.) Estimated savings: $150 over three months.

•Eliminate bank fees. Use a bank that has ATMs nearby, to eliminate fees assessed for using out-of-network bank machines. Look for a bank that offers free checking to avoid fees associated with checking accounts. Estimated savings: $50 over three months.

•Pay yourself. Take an extra $50 a month, or pay period, from your wages and have it directly deposited into a savings account. "We always encourage people to pay themselves every month in a savings account, just as if it were one of their creditors," Godfrey said. Estimated savings: $150 over three months.

•Have an insurance checkup, and make sure you're not over-insured or under-insured. If you can handle raising your deductible, that will save you money each month. "Definitely get on the phone with the insurance company and see whether you could lower your homeowners or car insurance," Detweiler said. Estimated savings: $35 to $75 over three months.

•Eliminate little-used memberships or subscriptions, for instance at gyms or fitness centers or for online music services. Eliminate premium or other extra-cost channels on cable TV. Review your cell phone package to see whether the minutes are the right amount for your calling patterns. Estimated savings: $12 to $50 per month, or about $75 to $150 over three months.

•If you rely on a cell phone, think about eliminating the land line. "There is no need to pay for both, for folks struggling with a budget, and that will free up money," said Godfrey. Estimated savings: $105 over three months.

•Reduce driving, walk more, take fewer trips, financial planner Jim Ludwick suggests. Estimated savings: $200 over three months.

•Kick bad habits. Buying cigarettes and lottery tickets each day can add up quickly. Estimated savings: $100 over three months.

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