7 Ways to Save
By brooke, April 5, 2010, Personal Finance
Looking for additional ways to save money this year? These are some ways that can reduce spending without cutting back on the quality of life. From an online article by Smart
Money, it provides seven tips from financial experts to save money that I thought were interesting to share. Here are their tips:
Cellphones
Cellphone users often pay $10 or more a month for services they don’t use or need, says Garrett. To make sure you’re not one of them, check that your plan is the best deal for your phone habits. Text junkies, for example, should be hunting down plans with unlimited texting, while large families may want rollover minutes or shared plans. Heck, you might even find that the deal you get for your cellphone enables you to ditch your landline altogether — and save an added $40 or more per month in the process.
Credit cards
Credit card issuers are making it tough on consumers these days, tacking on fees and cutting credit limits. That makes picking the right card — one that lets you maximize rewards and other card benefits while cutting interest — crucial, advises Patzer. His pick: the American Express (AXP: 38.64*, +0.51, +1.33%) Blue Cash card, which carries a rate of 11.99% and earns 5% cash back on groceries, gas and drugstores and up to 1% on everything else.
Entertainment
Identify your weakness. Whether you always have to see a movie the day it opens at theaters or you’re a fixture at the local pub, take stock of your entertainment expenses, says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies, an industry group that sets professional standards for credit counselors. While it’s not necessary to stay home every night, aim to find more budget-friendly ways to enjoy your favorite splurges.
Gas
“Don’t be lulled into a false sense of security because gas is less than $2 a gallon,” says Jones. “Prices can rise very quickly.” Case in point: just five months ago, gas topped $4 a gallon. One way to prepare for such wild swings is to keep your car in tiptop shape. Not only does a well-maintained car have fewer problems on the road, but it also burns fuel at a more efficient rate. Replacing a dirty air filter, for example, can improve fuel economy by 10% — saving you roughly 17 cents per gallon, according to FuelEconomy.gov. Keeping tires properly inflated saves about 3%, or 5 cents per gallon.
Groceries
It’s time to make the switch to generic or store-label goods. “They’re just as good [as the brand names], but for a fraction of the price,” says Garrett. Not convinced? They’re cheap enough to try once, at least. At ShopRite, for example, a 15 oz. can of sliced peaches is 99 cents, while Del Monte’s can costs $1.50.
Insurance
Are your insurance bills busting your budget? To cut premiums, consider raising your deductible, advises Garrett. Push your homeowners’ insurance deductible from $250 to $1,000, for example, and you could cut your premiums by 25%. This move also improves your risk profile — insurers know you won’t be filing small claims (since you’ll most likely have to pay for the whole thing), so they may be more inclined to offer other discounts, she says.
Utilities
Let the house get a little colder in the winter and a little hotter in the summer. Adjusting the thermostat by a single degree can cut up to 5% from your bill, depending on where you live, according to the Alliance to Save Energy. That’s an average $180 a year with most programmable thermostats.
For the full article, click here.
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