Good, Better, Best Money-Saving Ideas

Each of us has a different tolerance level when it comes to
saving money. What we're willing to do to save a dime depends on our
interests, our time and other factors. Some people will make their own
hot chocolate but refuse to change their own oil, for example.

So we asked experts to provide a simple tip that will easily
save money (good), another tip that might take a little more time or
effort but which will save more money (better), and a more extreme tip
that will help readers save the most -- but which would require the
most thought or effort (best). This way, you can pick tips that match
your needs and your tolerance for frugality.

Car buying

Your old clunker just gave out. Before you venture into the
lion's den, also known as the car dealership, consider these
money-saving options:

Good: Use a market guide such as Edmunds.com to
learn the invoice pricing (what the dealer pays for the car) and the
true market value (what people actually are paying for the car), says
Mike Hudson, consumer advice editor for Edmunds.com.

Better: Research financing rates and get
pre-approved. This puts you in a much stronger negotiating position.
"Use it as a chip against what they're offering," says Hudson.

Best: Play dealerships off each other. Call or fax
all of the dealerships in your area and ask for a written price quote.
"With price quotes, you have something in writing you can show the
salespeople. You're not bluffing or coming up with numbers out of thin
air," says Hudson. "Remember, the greatest ability you have is to not
buy a car." The dealer needs to sell cars, but you don't have to buy
from him.

Bonus tip: Never decide based on the monthly
payment, says Hudson. Focus only on the overall price of the car.

Clothing

Your wardrobe is looking a little shabby. Time to brighten it
up with a few new (or at least new-to-you) pieces.

Good: Keep it simple. One woman built a wardrobe by
buying two pairs of great-looking black pants and then shopping for
good quality colorful tops, tunics and jackets. This keeps your shoe
wardrobe simple and inexpensive too -- a pair of black boots in winter,
black pumps the rest of the year. Now everything in your wardrobe goes
with everything else, and you just need a few pieces every year to keep
it fresh.

Better: Become a frequent buyer. By getting to know
the policies and practices of a few stores, you can save a bundle.
Couple insider knowledge gleaned from salesclerks along with loyalty
programs and coupons, often generated by signing up for mailing lists.
Take advantage of in-store promotions, such as applying for store
credit cards when they offer an immediate discount on purchases.

Best: Shop everywhere -- and don't buy until you
know you're getting the best deal. One woman who had never shopped for
clothes at a discount store bought a blouse at Wal-Mart out of sheer
desperation. It cost less than $25 and, two years later, still looked
as good as new. Other places to shop include thrift stores and
consignment shops, other people's closets (when a friend purges her
wardrobe), even the grocery store (where T-shirts can go for $5!)

Groceries

Next to your rent or mortgage payment, your food bill is
probably the biggest expense you have each month. Ellie Kay, author of The Debt Diet
(Bethany House Publishers, 2005), offers these tips:

Good: Shop sales. Look in the Sunday or Tuesday
paper (depends on your area) and see what's on sale, advises Kay. Stock
up on and eat items that are on sale that week.

Better: Sign up for a store card (sometimes called a
clipless coupon). Shelf tags and sale ads show the "store card" price
as compared to the regular price of the item. Some of these specials
are unadvertised. All you have to do is show your store card at the
cash register when you check out.

Best: "Get into couponing," says Kay. "Go to a
double-coupon store to maximize savings." Use a file box to alphabetize
and store your coupons. "Combine couponing with the purchase of sale
items," says Kay. "And use your store card. If you make that the way
you buy, you've paid the least price possible for the item." To make
the most of this strategy, let your pantry dictate the menu. You
purchase everything you ordinarily use on sale and with coupons. "Then
when you need rice, you've already purchased it for 9 cents a box,"
says Kay. "Plan your meals around what you have. That's a different way
of shopping."

Kay's Web site includes a links page
where you can get coupons online in addition to regular manufacturer's
coupons. Other sources for local offers are www.smartsource.com,
www.hotcoupons.com and www.valuepage.com.

Insurance 

If
every year brings an increase in the premiums you pay, take action. A
former insurance broker, Kay offers these tips for cutting your
insurance costs sensibly:

Good: "Call your
insurance agent to find if you qualify for any discounts," says Kay.
For example, car insurance companies often offer discounts for
nonsmokers, good drivers -- even nondrinkers. If you keep your vehicle
in a closed garage instead of a carport or driveway, you might qualify
for a discount. For a homeowner's or renter's policy, you might get
discounts for having an alarm system, smoke alarms and more.

Better: Get competitive quotes.
"Most people don't," says Kay. "Especially homeowners. It's tied up in
escrow and paid through their mortgage payments and it automatically
renews every year." It's never too late to get competitive bids on any
insurance product.

Best: Increase your
deductible, says Kay. Although this means you could pay more out of
pocket in the event of a car accident or fire in your home, you can
save a significant amount of money by not expecting the insurance
company to cover every small loss.

Utilities

Sure, you could start chopping
wood for the fireplace, but is that really the best way to save on your
fuel bills?

Good: Keep the thermostat set a
little lower in winter or a little higher in summer than usual. It
won't take long for you to get accustomed to the slight temperature
change, and even a few degrees' difference can mean money in the bank.

Better: Ask your energy company
if it offers time-of-day rates. By using less energy during peak hours,
you can pay less on your utility bill. This requires coordination with
other family members. Kay says her electric company installs devices on
appliances such as air conditioners that will switch off the unit
during high-demand times. By agreeing to have her air-conditioning unit
switched off if necessary, Kay gets a rebate of $50 per month on her
utility bill. "I've never noticed a difference," she says.

Shut-off timers for porch lights and water heaters can save money on
utilities, but require an upfront investment in the device. Check with
your local utility company regarding how much money this strategy could
save.

Best: Go through a
complete homeowner's checklist to make sure your home is running at
optimal utility efficiency, recommends Kay. This means changing all
filters regularly, ensuring you have the right amount of insulation and
caulking your windows.

Appliances

When it's time to replace that
washer or air conditioner, think energy efficiency as well as initial
price, says Kay.

Good: Before you buy any
appliance, call the electric company to see if it has rebates available
for special models, says Kay. It sometimes makes such offers to
encourage you to buy an energy-efficient model.

Better: Take advantage of
the Internet. Kay suggests going to Google
Product Search to find great deals. "(You'll) find the very
best price on the make and model and style that you want," Kay says.
"Once you've found the best price, print it out and take it to a local
vendor and ask them to match it."

Best: Buy barely used.
"Some people upgrade their appliances like they do their cars, a new
one every year," says Kay. "I purchased a 1-year-old washer and dryer
for 50 percent off." It still had a warranty. For smaller appliances,
Kay suggests going to garage sales and swap meets. "You wouldn't
believe what you can buy from people who have been watching QVC a
little too much," says Kay. And don't forget eBay, the online auction
site, which is a great place to get appliances. Make sure you're buying
from a reputable known source that has a good rating, Kay cautions.

Bankrate.com
is the Web's leading aggregator of information on financial products
including mortgages, credit cards, new and used automobile loans, money
market accounts, certificates of deposit, checking and ATM fees, home
equity loans and online banking fees. Visit Bankrate.com
to get the tools and information that can help you make the best
financial decisions.