Managing Your Money : Penny-Pinching Made Easy: An Everyday Guide : Companies know that cutting expenses means instant profit. The same works for people. Here’s how.

Few people like to budget. Too many of us merrily spend more than we earn and wait for more income to cover the deficit.

“Making more money doesn’t help,” says financial counselor Chellie Campbell, owner of Cameren Diversified Management in Pacific Palisades. In her experience, people just overspend the higher salary.

But there are ways to reduce expenses and maintain your standard of living. Says Campbell: “People think they are locked in, but they can make new choices.”

Here are some ways to cut costs. Each by itself may not seem like much, but adopting just a few of these suggestions will put hundreds of dollars back in your pocket--and maybe let you have something else you’ve always wanted.

Buying a Car

Cars just seem to soak up money. If you need a new one, consider a “program car” from one of the rental companies. All the majors maintain lots in the Los Angeles area, and you can save anywhere from $1,500 to $3,000. Avis was asking $4,999 for a 1990 Chevy Cavalier recently. Dealer prices are $2,000 to $3,000 above that. The cars usually have 15,000 miles on them, and not all are fully loaded. Another possibility: dealer demonstrators, which can yield savings of 10%.

If you insist on a new car, help is available through programs offered by some large employers, credit unions and other organizations. Members are sent to the fleet managers of participating dealers, who will sell for a fixed price or percentage over invoice. “You can save $700 to $1,200 on the purchase of a domestic car,” says James Beckham, fleet general manager at the American Automobile Assn.

When buying, put the squeeze on the dealer by knowing exactly what he paid for the car you want. Consumer Reports’ Auto Price Service will send you a printout telling you the dealer’s cost for a given car and option package. One model per printout costs $10. Send a check to Box 8005, Novi, Mich.

The Center for the Study of Services, a nonprofit consumer outfit in Washington, will negotiate prices with five dealerships near you for $96. You specify the make, model and transmission. The center can get a better price than consumers because it collects information about secret rebate programs that manufacturers provide to dealers, says its president, Robert Krughoff. Call (202) 347-7283 or write 806 15th Street N.W., Suite 925, Washington, D.C. 20005.

Or consider AutoAdvisor, at (800) 326-1976, which will negotiate for a specific car and offers to refund its $297 fee if you can find the same car for less.

Intellichoice, at (800) CAR-BOOK, specializes in projecting car ownership costs. If you have narrowed down your choice of cars to two models, Intellichoice offers a comparison report for $19. The reports contain some significant surprises. The cost to replace spark plugs in some BMWs, for instance, is $600, says Charles Donaldson, manager of information and database development for Intellichoice. For $39, the company also sells the Complete Car Cost Guide, which has less data than the ArmChair Report but covers all cars.

Car Repairs

Another way to save is to make your old car last longer. For a nominal fee, many community colleges will teach you simple car care procedures, such as changing the oil and oil filter. Dealers charge around $50. Your local garage will do the same work for $30. But you can do it for the cost of materials and a little time. Also, the American Automobile Assn. offers a free evening session to its members to explain the basics of car maintenance.

Housing

Bargains can crop up in probate sales. The property is usually being sold by the executors of the estate, and sales need court approval. “The attractiveness of probate is that generally the seller wants to sell the property quickly,” says Steven Marcus, a real estate agent in the Beverly Glen office of Prudential California Realty.

Contact the REO department of banks. REO stands for real estate owned; the bank has foreclosed on these properties. The bank wants its mortgage brought up to date and earning interest, but it isn’t trying to make any extra money. You might be able to snare the property for the cost of the mortgage alone. Depending on current house prices, this could be quite a good deal.

If you already own a home, try to pay down your mortgage in 15 years instead of 30. For an extra $147 a month on an $80,000 mortgage at 11%, you’ll cut your total interest payments by $110,000.

When buying any house, points and fees may be negotiable with the mortgage provider. Good borrowers are in short supply. “So many people look on lending institutions as gods,” Marcus says. “We should not be afraid to negotiate with them.” One Marcus client cut his points from 1.5% of the mortgage value to just 0.75% by astute bargaining.

Utilities

Take advantage of energy conservation programs offered by power companies. Southern California Edison’s air-conditioning cycling program can save you $60 to $100 a year if you agree to let SCE shut down your air-conditioner if demand outstrips supply from June 1 to Sept. 30. It may never happen, but you keep the money anyway.

Both SCE and Los Angeles’ Department of Water and Power encourage customers to use compact fluorescent bulbs. The bulbs last 10 times longer than incandescent ones and consume 75% less electricity. SCE will sell up to three bulbs per customer at $5 each. The bulbs retail for $7 to $30. The DWP is distributing three to five bulbs per household in selected areas as part of an energy-saving campaign. Estimated savings with three bulbs is $21 annually.

Also, clean your refrigerator coils and save $5 per year on your electric bill.

Insurance

This is a major expense, and shopping around pays.

A company that looks expensive initially might be the cheapest because of the multiple discounts it offers. For example, Farmer’s Insurance will give motorists an 8% discount for nonsmokers.

Ask about good driver, anti-lock brakes, air-bags and automatic seat belts, good student and multicar discounts. The number of miles you drive annually and where you live can still make a difference. Call your insurance agent before you buy a car. “There is a drastic difference,” says Kathi Dolan of the Dolan & Beard Agency in Pacific Palisades. “Four-door cars are generally cheaper than a two-door. High-performance cars are more expensive, as are foreign cars.”

For homeowner and renter insurance, ask for discounts for burglar alarms and smoke detectors. Some companies offer more favorable rates on new houses or give a first-time buyer credit. Raising your deductible from $250 to $500 can save $40 on a $600 policy.

Food

Collect coupons and check prices at a supermarket that doubles their value. Janis Parry of Westlake Village reckons that, with coupons, she saves “about 10% of my $100-a-week grocery bill.” She shops at Vons, which doubles the face value of coupons. And she isn’t brand-loyal. Nor will she buy anything just because she has a coupon. But there are some things she’ll only buy with a coupon.

If the trip isn’t too far, join a warehouse club such as Costco or Price Club. The $25 annual membership buys substantial savings. Be careful, though. These clubs make money from customers who cannot resist a bargain. Stick to your list.

Eating out is a major expense. Brown-bagging lunch four times a week can save you perhaps $20, or $1,000 a year, minus a few dollars for food brought from home. Supplying your own tea or coffee nets you an annual saving of $225, assuming the coffee shop charges 50 cents a cup, and you drink two a day.

Similarly, you can save by meeting friends on the weekend for breakfast or lunch rather than dinner. And in general, choose cheaper restaurants. Good cheap ethnic eateries abound in Southern California.

Clothing

Shop the California Mart, in downtown Los Angeles, for the sample sale on the last Friday of every month. You pay in cash and there’s no sales tax. And many owners are willing to bargain. Roz Wolfe, section head for political, economic and public affairs at the Canadian Consulate in Los Angeles, recently bought a beige suit. It carried no price tag. “The saleslady said, ‘Take it for $50,’ ” Wolfe says. She picked out another suit for $100. She reckons it would sell for $250 retail. Children’s clothes and accessories are a real buy--$1 for headbands that cost $5 in the stores.

Another trick: Find a good dressmaker or tailor and bring along a sketch or photograph of your favorite designer outfit. “You can basically count on half the price and get a custom fit,” Beverly Hills designer Gilles Savard says. “A $900 Armani silk shirt can be made for $200 to $300.” The savings escalate as you copy more expensive designs.

Better yet, dust off your sewing machine. Janis Parry sewed a wool crepe dress for $45. A comparable one would cost $135 in the store. Of course, you have to count the cost of your time; she invested five hours, including shopping.

Entertainment

Some theaters sell rush seats for half price just before the performance. The Mark Taper Forum, Las Palmas Theatre and the Ahmanson at the Doolittle make tickets available for $10.

If you don’t feel the need to be the first person on the block to see a movie, wait until it comes to a neighborhood theater; $3.50 buys a seat at the Vista in Los Feliz, often for double bills of movies released perhaps four weeks earlier.

The greatest entertainment bargain is the videocassette, with rentals as low as $1.25 on weekdays. Some stores throw in another cassette free on Tuesdays, Wednesdays and Thursdays.

For cheap fun, especially when out-of-towners visit, watch the taping of a TV show. Audiences Unlimited Inc., (800) 506-0043, has box offices at the Fox Television Center in Hollywood and the Culver City Chamber of Commerce.

Furniture

Shop by mail. Companies in North Carolina will ship household furnishings by most major manufacturers.

Denise Landenberger of Westlake Village ordered an oak bedroom set for her son and some occasional tables. She saved about half the retail price, even after paying the shipping. And often, there is no sales tax. A pine bed retailing for $1,200 in Los Angeles costs just over $600, including shipping. But be prepared to wait three to six months. Among the companies in this business: Loflin & Black, (800) 334-7398; Quality Furniture Market of Lenoir, (704) 728-2946, and Blackwelder’s Industries (800) 438-0201.

Travel

Prices change daily, so you have to be on your toes. One Los Angeles writer waited for a three-day sale by TWA and flew from Los Angeles to New York for $198 round-trip, a savings of more than $300. “We never know when the air fare wars are coming,” says Sue Lundell, a travel agent at Lande Travel in Westwood.

Be imaginative. It can even pay to throw tickets away. One Lundell client, a physician, wanted to fly to Washington on Wednesday and return Thursday. The regular coach fare was $1,000. So she bought him two back-to-back excursions--for just $706.

Consider buying from a consolidator. The airlines sell leftover tickets to these brokers, who offer them at savings of 15% to 50% of normal prices. An excursion fare on Air France’s flight between Los Angeles and Paris is $1,500 round-trip. The consolidator’s price is $760.

But there are drawbacks. You usually don’t accumulate frequent flier miles, and the tickets are harder to transfer if the flight is canceled.

Best Fares, a monthly magazine published in Arlington, Tex., (800) 635-3033, tracks airline coupons and tie-in deals.

Credit Cards

Read your mail. Credit cards are a highly competitive business. Send $5 to RAM, Box 1700, Frederick, Md. 21702 for CardTrak, a monthly listing of fees and rates from 500 banks.

The key is to find a card tailored to you. One-third of Americans with credit cards pay off the balance on time. If you fall into that category, pick a card with no fee. So you missed AT&T;’s lifetime offer for a no-fee Visa or MasterCard. Hundreds of banks and Sears (with its Discover card) offer no-fee cards. Hundreds more provide gold cards at half the $75 rate of American Express

If you keep an unpaid balance, shop for cards with low interest rates. On a $1,200 average balance, your annual interest cost on a major bank card charging 19.8% comes to $237.60. The yearly interest on a card charging 13.9% is $166.80. Some cards ask as little as 10.5%, but these often offer lower credit limits.

Of course, best of all is to pay off your credit cards.

Bank Service Charges

Forget the idea that banks and savings and loans are the only institutions handling money. “We encourage our members to investigate credit unions,” says Paul Richard, director of the San Diego-based nonprofit National Center for Financial Education. Richard says 98% of adult Americans are eligible to join credit unions through spouses, siblings, children, grandparents, in-laws, etc. Credit unions normally pay higher interest on savings accounts and charge less for loans and credit cards.

Cash Flow

Time is money. Don’t pay your bills before they are due. By paying a $1,000 mortgage at the end of the 10-day grace period rather than on the first of the month, you could earn an extra $20 interest at 5%. But you might want to think about your credit rating if you’re late.