Living through a recession means we need to budget smarter. So here’s how to do exactly that, from Gregory Karp, a consumer expert and author of The 1-2-3 Money Plan: The Three Most Important Steps to Saving and Spending Smart. He says that by plugging the leaks of wasteful spending, you can redirect your money to things that are most important to you. So, here’s how to budget smarter.

• Let’s start with clothing. With so much merchandise backing up due to slower sales, department stores are marking down items just weeks after putting them on the shelves. Karp suggests shopping late in the day on Thursdays, since that’s when stores begin markdowns for the weekend. You’ll get the first peek at the best stuff, without the crowds. Also, don’t be afraid to haggle. Retailers want to make sales, so you have negotiating power in most situations.
• Premium TV. Subscribe to premium channels for only part of the year. This way, you can cater to your viewing habits. For example, Karp likes certain HBO series that run for only six months each year. He also watches more movies in the summer while network shows are in repeats. So, he subscribes to the appropriate premium channels only during those time periods. This saves him about $100 a year. Talk to your cable company and see if you can do the same.  
• Books. You can actually get discounted books when you travel. It’s called the “Read and Return” program. You can buy a book in a Paradies airport bookstore, and return it within six months to the same vendor in another airport for a 50% refund. There are 500 stores in over 70 airports and hotels across the United States and Canada. For audio-books, Karp says Audible.com saves you up to 75% off retail prices. You pay a one-time fee to purchase and download a dozen books. There are more than 60,000 titles to choose from, including the latest best-sellers.

For more money saving tips, check out The 1-2-3 Money Plan: The Three Most Important Steps to Saving and Spending Smart.