Reducing your living expenses allows you to save more for retirement or makes your current retirement income go further for what you really want. But even if income is not that tight, saving money by eliminating unnecessary expenses is a way to pay for special treats - like trips and gifts - that can brighten up retirement.

Remember saving just one dollar a day frees up $365 more 'tax free' income to enjoy per year. Let's take a look at some categorized saving tips that can really add up and make you feel better too.

Expensive habits:

* Cigarettes - Wow! They're really expensive now with all those government taxes. Cut your smoking in half or 100%; you'll feel better and save a fortune. You do the math!

* Morning coffee - Don't stop at the convenient store each morning. Brew some it at home and fill an insulated cup for the drive.

* Drinking a lot of soda? - Switch to water or use water to dilute the soda. Buy spring water by the gallon and fill up a plastic bottle to drink out of. You'll feel better.

Shopping:

* Make a list for grocery shopping and stick to it. Buy in bulk and freeze what you won't be using right away.

* Buy the cheap detergent - with refills.

* Save your plastic grocery bags to use as garbage bags.

* Avoid shopping for 'something to do'

Entertainment: reading, listening, and watching

* Don't buy magazine subscriptions. Read them or check them out at the library. You can also look for any CDs or DVDs there too.

* Read books, magazines, and newspapers at your local bookstore's coffee shop.

Travel

* Shop around for the best air fares if planning a trip. Go online and 'google' airline fares. There are a lot of bargains.

* Check the visitor centers along interstates for coupon books giving discounts on lodging and meals.

* Ask for discounts at hotels/motels and on meals there. Your Car

* Take care of your car. A good maintenance schedule, regular cleaning, and sensible driving can make a car last for many years.

* Unless there's a real need for a second automobile, keep only one. You'll save on insurance, maintenance, and in some states personal property tax. If you live in or near town, try walking or riding a bicycle in place of using that second car.

Paying with plastic

* Use your credit cards wisely. Don't purchase more than you can pay off each month.

* Better still, pay with an ATM card or cash so you won't ever have to consider making an interest payment.

Costs for your home

* Stop heating or cooling the part of the house you're not using. Heat only your bedroom in the winter. You can put the rest of the house on timer for when you get up and go to sleep.

* Use compact fluorescent bulbs rather than incandescent. Though more expensive to buy, they last 10 times longer and use less energy too for an overall savings.

* Cook at home - and make several meals at once. You can eat some meals at home, but bring leftovers out to eat at the park or on site-seeing tours of your own. That'll leave more money for the dinners you really want to dine out for.

* Cancel your line phone. Cell phones are great because they go wherever you go - which is why everyone has one.