OK, you've worked out the sums - and a total lifestyle change just isn't going to pay the bills.
Giving up the car is not an option either, but you want to reduce those costs so you can start living a bit more.
The answer - downsize that precious pricey motor and get something that's going to start saving you money on fuel, insurance and tax.
Give the small car a chance...
Here's our list of the Top 10 best value cars for downsizing in 2010. But it's not all about Citroen CVs'
BMW 320d EFFICIENT DYNAMICS
For the genuine downsizer. Car nuts are raving about this compact executive, widely considered to be the best on the market, because of its bargain price. At roughly £27,000 the car, already on-sale, is stylish and cost effective, capable of almost 57mpg. With anticipated carbon emissions of 109g/km, this executive motor falls into the lowest tax band for company cars and will only set you back £35 a year. That's a tax saving of eeermm- £11, 150 on an Aston Martin DBS. Say no more. Did the kids want a horse for Christmas?SKODA FABIA GREENLINE
This smart little number could save you big bucks, delivering almost 70mpg and churning out just 109g/km in CO2, putting you in the lowest road tax bracket. Prices begin at roughly £12,000.PEUGEOT RCZ HYBRID
The regular edition is due in April but more exciting is the hybrid, expected later this year. The diesel hybrid's stylish design has drawn comparisons with the Audi TT. It is expected to cost roughly £20,000 but will offer more than 75mpg. Carbon emissions of 95g/km will also exempt drivers from road tax.SKODA SUPERB ESTATE
If it's a family car you're after then the Skoda Superb Estate offers fantastic value for money. With 633 litres of boot space and ample leg room the estate, which goes on-sale next month, will set you back an estimated £17,000 but offers space and comfort. The 138bhp 2.0 litre diesel engine will also offer relatively low running costs.TOYOTA AURIS HYBRID
The first Toyota hybrid to be built on UK soil, this motor will save you cash in more ways than one. With carbon emissions expected to come in at under 100g/km, you'll be exempt from road tax. Makers have also made front-end alterations to improve aero dynamism which, combined with the car's electric motor, will save you money on fuel. Due out in late 2010 at an estimated £17,500.HONDA CR-Z
This stylish coupe employs the very latest in petrol-electric hybrid technology. Expected in mid-2010, price estimates begin at £16,000. The car won't run exclusively on battery power but will help cut your fuel costs at 56.4mpg. Carbon emissions of roughly 117g/km will set you back just £35 a year in road tax.VW GOLF BLUEMOTION
This hatchback will set you back around £17,500 but its aerodynamic design gets you 68.9mpg. With carbon emissions of just 107g/km you'll be in the lowest road tax bracket, paying just £35 a year!SEAT IBIZA ECOMOTIVE
Using regenerative brakes, this family car makes sure you get the most out of your fuel. Seat designed the car with the specific intention of making it as light as possible, which cuts fuel consumption and makes driving easier. With carbon emissions of 98g/km you will also be exempt from road tax. Expected to go on-sale at roughly £13,000.TOYOTA PRIUS
This hybrid offers fantastic value for money. The Prius gives you 50mpg. With carbon emissions as low as 89g/km you'll also be free from road tax. You can also save a fortune in fuel by switching to battery power if you're travelling at 31mph or less. Price estimates begin at £16,000. Due in the UK by late 2010.MINI COOPER D
Not the most fashionable of cars, but if you're looking to downsize then you could do a lot worse than this Mini. The Mini Cooper D will give you 72.4mpg and top speeds of 121mph. Carbon emissions come in at just 104g/km, putting road tax at just £35 per year. Prices begin at around £15,000.
