NEW YORK (CNN) - Inflation is picking up, with overall consumer prices rising at a 4.2 percent annual rate, according to the latest numbers released Wednesday.

We're seeing higher prices on everything from clothing to cereal.

In today's Five Tips, we're going to tell you how you can chop your expenses down to size.

It can cost upwards of $8,000 to own and operate a car, according to AAA - and that's not even including gas! A good chunk of that will come from insurance. To cut costs in that area, ask if you're eligible for a professional discount.

Some insurers give discounts for people in certain professions, including vets, speech therapists, economists and teachers. You may also qualify for discounts if you've cut down on driving. In some cases if you drive less than 7,500 miles a year you'll qualify for a 5 percent discount from your insurer.

Heating and cooling costs make up almost half of your home's total energy bill. This summer you'll want to make sure you replace your air conditioning filters before you install it.

Dirt buildup is the biggest reason why your AC isn't running at its best.

Another way to cut your energy costs...unplug your gadgets.

It may not seem like much, but keeping your computer monitor on all the time, will cost you $.60 cents a day, or $18 a month. Keeping your cell phone and battery charger plugged in may cost you $1.50 a month. And the night light? That'll cost you $.50 a month if you keep it on 24/7.

Skip buying toiletries like toothpaste, shaving cream or soap at the grocery store. Prices can be almost 25 percent higher than in a discount store, like Wal-Mart.

Look at the top and bottom shelf if you want to find the discounts.

Often stores will put the most expensive and well-packaged products at eye level. And don't just grab the generic brand. Depending on the promotion, they're not always the cheapest, according to Jyl Steinback, the author of "Supermarket Gourmet."

The average cell phone user pays about $60 a month for an individual cell phone plan, according to Delly Tamer of LetsTalk.com. And today it's not just the phone calls you pay for...it's music, games and messaging too.

You may consider switching to a family plan where everyone uses the same pool of minutes.

Plans start at about $60 a month. If you have a teen in the house and you want to control their talk time, a pre-paid plan may be your best bet here. Check out some of the options at www.letstalk.com. You should also do some research on cell phone plans at Amazon.com or craytonelectronics.com. You may be surprised at the savings.

OK...so let's talk about the goodies. The Web has a lot of new product offerings from companies that are all too willing to have you test their products out. Go online to thefreesite.com. On this site you'll get a list of free product samples and offerings on the web, including free pizza, free gum and deodorant samples and free circus tickets.

You should also check out Procter & Gamble's Web site, www.brandsaver.com. This site offers a number of freebies on its special Web site, including free samples of shampoo, dusters and makeup. Keep in mind, you'll likely be bombarded by marketers for the rest of your life..but you know there's no such thing as a free lunch.

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Gerri Willis is a personal finance editor for CNN Business News and the host for Open House. Send your questions, your comments and your own ideas to us at 5tips@cnn.com.