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By Kelli B. Grant, SmartMoney

The next time you book a connecting flight, keep your cellphone at hand with the ringer as loud as it'll go - you could get a call for a cheap up-sell on a direct fare.

American Airlines (AMR) called travel writer John Discala, aka Johnny Jet, within hours of his booking of a $160 one-way Los Angeles to Toronto flight, with a stopover in Dallas. Discala usually flies direct, but picked the connecting flight because it was $200 cheaper and added just three hours of travel time. "If it saves me $200, I don't mind spending a few extra hours in Dallas," he says.

But American wanted to know, did Discala want to upgrade to the direct flight, for an extra $49?

Discala says he was home sick at the time and, not thinking clearly, declined the offer. "I should have taken it," he says. "I've never heard of airlines doing anything like this, and I fly all the time."

"I didn't know we do that," was the initial response from American Airlines spokesman Ed Martell. After asking around, he came back to Pay Dirt with details of the program, internally known as "Project Direct," which has been quietly operating for four years. Here's how it works:

Revenue managers identify individual flights that are heavily booked, and look to see if there are passengers making a connection that might be moved to a direct flight. Although direct flights are typically more in demand, from a business perspective it makes sense to offer that upgrade for a small fee, variable by flight, if it frees more valuable seats, Martell says. (Looking at available fares on Expedia.com, in Jet's case, an upgrade might have allowed American to turn his one-way $160 ticket into $239 for the Los Angeles-Dallas segment, and another $307 for the Dallas-Toronto leg.)

Rick Seaney, the chief executive of Fare Compare.com, says it's more common as airlines trim schedules for consumers who booked direct to find themselves rescheduled onto connecting flights. But American's upgrade program -- and its secrecy -- makes sense in the competitive airline market, where connecting flights are often priced within a dollar or two of other carriers on the same route to appeal to cost-conscious travelers.

Martell cautioned against booking the cheaper connecting flight in anticipation of a call. Complex formulas have resulted in very few upgrade offers being made (hence Project Direct's under-the-radar status), and those that are extended are first-come, first serve. Discala, an elite frequent flier, would have been at the top of the list. "If all the planets align just right, you might get a call," Martell says. "[Discala] missed a rare opportunity."

Nickels and Dimes will keep tabs on new and rising fees and surcharges eating into your bottom line. Have one to share? Email kelli.grant@dowjones.com.

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By Aleksandra Todorova
Reporter, SmartMoney.com

But what about quick fixes? Many of these tricks are scams. But there are a few sneaky ways to legitimately give your score a boost when needed. Here are five ways to do it.

1. Increase Your Credit Limits

Credit utilization, or how much of your available credit you're using, affects 30% of your credit score, otherwise known as your FICO score. It isn't surprising, then, that credit experts insist you keep your balances low if you want to increase your credit score. (Here are details on what comprises a credit score.)

But here's a trick: Asking your creditors to increase your credit limits will have the same effect. Should the creditor agree to do it, the increase in available credit will automatically lower your credit utilization ratio, says Craig Watts, a spokesman for Fair Isaac, the company that calculates FICO scores.

Just how much of a boost your score will get is hard to predict. It depends on many other factors, including how long you've been using credit and how responsibly. Needless to say, using up those higher limits to get into more debt isn't a good idea.

2. Be an Early Bird

So you pay your credit cards in full each month. That's great, but as far as your credit report is concerned, you're still in debt. Why? Each month creditors report to the bureaus your latest statement balance -- i.e. what you rack up each month before you pay your bill in full, explains Watts. That dollar amount will appear on your credit reports and will be picked up by the FICO formulas. So if, for example, the balance on your latest statement was $2,000 and you sent the credit card company a $2,000 check, your credit report will show you had a $2,000 balance for that month, not $0.

A smart way around that: Pay your card bills before the next statement date. That's typically mentioned on top of the bill, right alongside your due date. Because of the grace period creditors give -- usually 20 to 25 days -- your statement date is typically 20 to 25 days before your actual due date. (You can find out when your next statement date is by logging onto your credit card account online or calling your creditor.) Once you know your statement date, pay off the full balance a day or so in advance. The result: The creditor will report $0 to the bureaus, bringing your credit utilization as low as possible and improving your score.

3. Use Old Cards Occasionally

Obviously, the longer your credit history, the higher your score can be. (That's assuming you're doing all the right things like paying your bills on time.)

What you may not know: If you haven't used a credit card for more than six months, the creditor may start reporting the account as inactive. That doesn't mean the account will disappear from your report, says Watts. But when an account is inactive it isn't factored into all FICO formulas. One example: The credit utilization formulas typically don't pick up inactive accounts. Even if your balances are low or $0 on these cards, that won't be reflected in your credit score. "If you have open credit-card accounts, using those cards occasionally will keep them active with the bureaus and contribute to your credit score," Watts says.

4. Piggyback

If your credit history isn't all that long or spotless, adding a credit account with a long, positive credit history to your report will certainly boost your score. But how do you all of a sudden add an old account to your report?

It's easy. Just ask someone -- a friend, relative or someone you trust and who trusts you -- to make you an authorized user of a credit card they've had for a long time and handled responsibly, says credit expert Gerri Detweiler, author of 'The Ultimate Credit Handbook.' "If I get your card with my name on it, the whole entire history from day one will show up on my report as well," she says. "That's pretty beneficial. Even if they had it for 20 years, I'll get that 20 years of history."

The good news: Because you are only an authorized user, you are not liable for any card balances, Detweiler says. And the original card holder doesn't need to give you the card itself, so they can be sure you won't rack up debt in their name.

5. Mind Your Utility Bills

It used to be that you had to skip paying your utility bills for months for that negative information to pop up on your credit report. Most utility providers -- from phone companies and wireless carriers to electric suppliers -- only reported delinquent accounts, Watts says. Not anymore. An increasing number of utilities have started reporting to the bureaus the same way as creditors do, which means paying your electric and cable bills on time has to be just as important as your credit card bills. (Here's advice on how to keep utility bills low.)

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By AnnaMaria Andriotis, SmartMoney.com

Ideally, you should begin the year with an annual budget -- consider this the master plan -- and then, as the year progresses, draw up a budget for each month before the previous one ends, says Judy Lawrence, author of "The Budget Kit." That way, you can revisit certain expenses and revise accordingly. To help you put together your budget for 2008, here are some things that you should definitely consider:

1. Keep Track of Your Regular Expenses

If you're the one paying the bills each month, this is probably the easiest part of your budget to put together. Take note of all your regular monthly expenses, including fixed payments for, say, your car and mortgage (or rent), and your fixed (but sometimes variable) costs, such as gas, cable and phone bills. Then jot down your seasonal, biannual and annual expenses. For example, if your car needs a tune-up at least once a year, factor that cost into your annual budget.

Once you're done, you should have a good sense of what you're day-to-day living costs you. While there's no set formula that proves whether or not you're spending too much of your monthly income on these expenses, you can typically expect home payments, including your mortgage, utilities, taxes and maintenance costs to consume up to 35% of one month's salary, says Lawrence. And transportation costs including car payments, insurance and maintenance don't normally surpass 24% of one month's pay. Obviously, these percentages will vary based on your location and marital status, among other things, she says. Click here for more on how to track your spending.

2. Prepare for Rising Energy Prices

For the 2007-2008 winter season, the average household is projected to spend $1,955 on heating oil, a 33% increase from the previous winter, according to the Department of Energy (DOE). Homes with natural gas are expected to pay $865, a 6% increase.

Rather than getting hit by a monstrous bill, re-adjust your budget with a few simple steps. If you live in a state with cold winters, ask your oil or gas suppliers if you can sign up for a set pay rate for the entire year. That way, rather than receiving exorbitant bills in the wintertime, you'll pay a set amount each month, says Antoine Smith, information specialist at the DOE. Keep in mind that once you sign up, the rate won't change even if there's a mild winter.

You can also keep costs down by winterizing your home. "Little things like insulating your doors and windows can save you a couple hundred dollars a month," says Jason Rich, author of "Make Your Paycheck Last." Click here for more on how to cut your winter energy bills.

Gasoline retail prices are also projected to rise to an average $3.15 per gallon from $2.62 in 2006, according to the latest DOE annual data. Before you fill up, check web sites like GasBuddy.com and Mapquest, for gas stations with the lowest prices. You can also increase you car's fuel efficiency with some basic maintenance, like a tune-up and checking your tire pressure, says Rich. For more tips, click here.

3. Eliminate Credit-Card Debt

The average household with at least one credit card carries $9,616 in credit-card debt, according to Cardweb.com. If you have credit-card debt, it's time to start paring down the lifestyle and focusing on paying it off. First, remove as many entertainment and other unnecessary expenses from your budget as you can, and then put all of that money toward paying off your debt. Otherwise, no matter how well you plan your budget, you'll always end up overspending on the high interest rates and fees that accompany your credit cards, says Rich. Click here for more ways to tackle debt.

4. Build an Emergency Fund

Unexpected emergencies, like temporary unemployment and medical expenses, can blindside you financially. Rather than depending on an interest-charging credit card or loan to help weather such storms, try to save as much as you can when your finances are stable so that you'll have a cash reserve when you need it.

In order for this fund to serve its purpose, it should have three to six months' worth of your take-home pay, says Lawrence. That may sound like a lot, but even if you're on a tight budget, you should try to contribute to your emergency fund as often as possible, ideally each month. Set up an automatic contribution to your bank account from your paycheck, for, say, $50, during each pay period. That way, you pay yourself first without even realizing that you're left with less money for day-to-day expenses, says Elaine Morgillo, a certified financial planner with offices in North Andover, Mass., and York, Maine.

To help your fund grow, put it in a high-yield savings account where it accrues interest and where you can access your cash within 24 hours of requesting it, says Morgillo. If you use an online account, make sure it's FDIC-insured. Online banks such as HSBC Direct and Emigrant Direct have an annual percentage yield of 4.25% and 4.65%, respectively -- some of the highest rates out there.

If you still have extra cash after contributing to your emergency fund, deposit it in your 401(k) -- and make sure you're taking full advantage of your company match -- or your IRA. Click here for more on 401(k)s and click here for more on IRAs.

5. Estimating Your Tax Bill

Before you finalize your budget for the year, schedule an appointment with your accountant to get a rough estimate of your tax bill. Because of last year's volatile markets, you're likely to get hit with capital-gains taxes if your holdings include mutual funds in brokerage accounts that had high returns in 2007, says Theodore Lanzaro, certified public accountant and managing partner at Shelton, Conn.-based Lanzaro CPA. This is especially the case if you invested in the energy sector and foreign markets, such as China, India, Russia or Brazil, he says. Click here for more on capital-gains taxes.

Your accountant can also keep you abreast of the developments surrounding the alternative minimum tax (AMT). As of press time, President Bush is expected to sign a bill into law that will spare more than 20 million middle-class taxpayers from the AMT. Who will get hit with this tax? That depends mainly on whether you itemize deductions for state and local taxes, your number of personal exemptions, and if you exercise any incentive stock options. Although it's difficult to pin down a starting salary that's affected by this tax, it's unlikely the AMT will hit single taxpayers with income under $75,000 and married people filing jointly that make less than $150,000. Click here for more on the AMT.

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By Kelli B. Grant,
Senior Consumer Reporter, SmartMoney.com

Here are five types of products that you should always purchase generic:

1. Produce

Choosing unmarked oranges over those with a Sunkist sticker should never be a difficult choice. Without the brand-name sticker on, say, Dole lettuce, the underlying produce is identical. "From a food safety perspective, no matter how the produce is marketed or packaged, they must adhere to the same standards," says Stephanie Kwisnek, a spokeswoman for the Food and Drug Administration. (Another produce tip: Check out the warehouse club. Check out the price comparisons here.)

* Prices from supermarkets in the New York City region.

2. Over-the-counter Medications

Feeling under the weather? Don't dismiss your drugstore-brand pain, cold and cough medications, says Tod Cooperman, president of ConsumerLab.com, which tests health and nutrition products. The FDA requires products with the same active ingredient to meet the same efficacy standards. Translation: Your drugstore ibuprofen must work just as well as its brand-name counterparts, which include Advil and Motrin. In the process, you can cut your drugstore bills by a third or more.

Here's how much you can save with generic medication.

* Prices from supermarkets and drugstores in the New York City region.
** Per-tablet price adjustment. Store label was 120-count.

3. Organic Food

Many supermarket chains have their own organic line - Whole Foods has 365 Organic, for example, while Publix has GreenWise Market and Safeway has O Organics. If you're looking to trade up to organic foods without inflating your monthly grocery bill, those private-store labels are your best bet to save. "Whether it's from a local producer or a big company, any product labeled as organic must meet the same standards, and be certified it meets the standards," says Joan Shaffer, a spokeswoman for the USDA, which certifies organic products. You'll still pay more for store-brand organic products than you would for conventional generics, but only half as much as you would to buy brand-name organics. (For more on cutting costs on organics, click here.)

Here's how much you can save by buying generic organics.

* Prices from supermarkets and drugstores in the New York City region.
** Per-tablet price adjustment. Store label was 120-count.

4. Basic Skincare and Beauty

Next time you hit the drugstore to buy your favorite body lotion take a hard look at the drugstore-label version sitting on the shelf next to your brand of choice. "Oftentimes, they're made in the same factory," says Beth Mayall-Traglia, executive vice president of TotalBeauty.com, a web site that reviews beauty products.

That said, there are times when going brand name is worthwhile. You're likely to get more bang for your buck from pricier products that use an exotic ingredient -- like anti-agers retinol and Vitamin A. The brand name typically gets you more of the active ingredient and packaging that better preserves its efficiency, says Mayall-Traglia.

Here's how much you can save with drugstore-label generics.

* Prices from supermarkets and drugstores in the New York City region.

5. Pantry Staples

Single-ingredient items, such as flour, salt, spices and sugar, are held to government regulations for production, packaging and storage. In other words, sugar is sugar, regardless of its label. Need more incentive? These items rarely attract in-store sales or manufacturer's coupons. (For the best coupons sites to help with sale-heavy items, click here.)

Here's how much you can save on the staples.

* Prices from supermarkets and drugstores in the New York City region.

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By Kelli B. Grant,
Senior Consumer Reporter, SmartMoney.com

Depending on what you're looking for, here are some of the best cards in five popular categories:

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