5 expenses not to trim

This post comes from Brandon Ballenger at partner site Money Talks News.

Times are tough, and they don't seem to be getting much better. About 14 million Americans were still unemployed last month, and that hasn't changed much since April, according to the U.S. Bureau of Labor Statistics.

Many people are understandably looking for ways to cut expenses and stretch dollars. There are lots of ways to do that, but some seemingly logical ideas actually end up more expensive in the long run. In the video below, Stacy Johnson offers a few examples of being "penny wise, pound foolish," along with a few suggestions for smarter savings. Check it out, then read on for more.

1. Car maintenance

Bad idea: Skipping an oil change. You could save $30 now, but that's little consolation when you see smoke under the hood because your engine seized up, leaving you with a $5,000 bill.

Better idea: If your car is running well, cut back on tune-ups instead. Check with your mechanic, but many will say that if your car seems to be running fine, you may not need it.

• Bing:How often should you change the oil?

2. Car insurance

Bad idea: Reducing your liability coverage. Whatever you might save, it's not worth it in case of an accident. You need enough insurance to cover your net worth.

Better idea: If you have a clunker that's worth only a few hundred bucks, consider dropping collision and comprehensive. That's one of several ways to save on car insurance. Another idea? Raise your deductibles. (How does your vehicle compare on insurance rates?)

Bad idea: Skipping or splitting your prescription doses. Even if you're feeling fine and can halve costs, it's not worth it if you end up in the hospital.

Better idea: Consult with your doctor about all your medications and see if there's anything you could stop or cheaper medications you could substitute. Ask about free samples and generic versions -- many popular drugs are going generic in the next year. Our recent story "Many prescription drugs are getting cheaper soon" has details and other ideas.

Bad idea: Cutting back on homeowners insurance. As Stacy pointed out, even if home values are dropping, replacement and repair costs aren't.

Better idea: Raising your deductible. Going from $250 to $1,000 can save you 15% or more, and that's less risky than lowering your overall coverage. Make sure you protect everything inside by having a home inventory too. There are also ways to save on renters insurance.

Bad idea: This may be the most obvious bite-you-in-the-butt​ decision, but don't miss loan payments or just pay the minimum. That's no way to get ahead, even if it gives you more flexibility now.

Good idea: Use Unbury.me to take a look at how much extra interest you'll owe by skipping or cutting payments, and learn the best way to pay off debt. (Do you have too much debt? Try MSN Money's calculator.)

Bottom line? There are tons of ways to save money. Just make sure you're picking the smart ones. Check out "10 painless ways to save $1,000" for more ideas.

More on Money Talks News and MSN Money:

• How to get a will on the cheap
• 4 money rules you might be ignoring
• Should everyone have a prenup?
• How do your finances stack up?
• 7 ways to overpay for car insurance
• 10 things home insurers won't say