Each of us has a different tolerance level when it comes tosaving money. What we're willing to do to save a dime depends on ourinterests, our time and other factors. Some people will make their ownhot chocolate but refuse to change their own oil, for example.
So we asked experts to provide a simple tip that will easilysave money (good), another tip that might take a little more time oreffort but which will save more money (better), and a more extreme tipthat will help readers save the most -- but which would require themost thought or effort (best). This way, you can pick tips that matchyour needs and your tolerance for frugality.
Car buying
Your old clunker just gave out. Before you venture into thelion's den, also known as the car dealership, consider thesemoney-saving options:
Good: Use a market guide such as Edmunds.com tolearn the invoice pricing (what the dealer pays for the car) and thetrue market value (what people actually are paying for the car), saysMike Hudson, consumer advice editor for Edmunds.com.
Better: Research financing rates and getpre-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 faxall of the dealerships in your area and ask for a written price quote."With price quotes, you have something in writing you can show thesalespeople. You're not bluffing or coming up with numbers out of thinair," says Hudson. "Remember, the greatest ability you have is to notbuy a car." The dealer needs to sell cars, but you don't have to buyfrom him.
Bonus tip: Never decide based on the monthlypayment, says Hudson. Focus only on the overall price of the car.ClothingYour wardrobe is looking a little shabby. Time to brighten itup with a few new (or at least new-to-you) pieces.Good: Keep it simple. One woman built a wardrobe bybuying two pairs of great-looking black pants and then shopping forgood quality colorful tops, tunics and jackets. This keeps your shoewardrobe simple and inexpensive too -- a pair of black boots in winter,black pumps the rest of the year. Now everything in your wardrobe goeswith everything else, and you just need a few pieces every year to keepit fresh.Better: Become a frequent buyer. By getting to knowthe policies and practices of a few stores, you can save a bundle.Couple insider knowledge gleaned from salesclerks along with loyaltyprograms and coupons, often generated by signing up for mailing lists.Take advantage of in-store promotions, such as applying for storecredit cards when they offer an immediate discount on purchases.Best: Shop everywhere -- and don't buy until youknow you're getting the best deal. One woman who had never shopped forclothes at a discount store bought a blouse at Wal-Mart out of sheerdesperation. It cost less than $25 and, two years later, still lookedas good as new. Other places to shop include thrift stores andconsignment shops, other people's closets (when a friend purges herwardrobe), even the grocery store (where T-shirts can go for $5!)
GroceriesNext to your rent or mortgage payment, your food bill isprobably 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 Tuesdaypaper (depends on your area) and see what's on sale, advises Kay. Stockup on and eat items that are on sale that week. Better: Sign up for a store card (sometimes called aclipless coupon). Shelf tags and sale ads show the "store card" priceas compared to the regular price of the item. Some of these specialsare unadvertised. All you have to do is show your store card at thecash register when you check out.Best: "Get into couponing," says Kay. "Go to adouble-coupon store to maximize savings." Use a file box to alphabetizeand store your coupons. "Combine couponing with the purchase of saleitems," says Kay. "And use your store card. If you make that the wayyou buy, you've paid the least price possible for the item." To makethe most of this strategy, let your pantry dictate the menu. Youpurchase everything you ordinarily use on sale and with coupons. "Thenwhen 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 wayof shopping."
Kay's Web site includes a links pagewhere you can get coupons online in addition to regular manufacturer'scoupons. Other sources for local offers are www.smartsource.com,www.hotcoupons.com and www.valuepage.com.InsuranceIfevery year brings an increase in the premiums you pay, take action. Aformer insurance broker, Kay offers these tips for cutting yourinsurance costs sensibly:Good: "Call yourinsurance agent to find if you qualify for any discounts," says Kay.For example, car insurance companies often offer discounts fornonsmokers, good drivers -- even nondrinkers. If you keep your vehiclein a closed garage instead of a carport or driveway, you might qualifyfor a discount. For a homeowner's or renter's policy, you might getdiscounts 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 inescrow and paid through their mortgage payments and it automaticallyrenews every year." It's never too late to get competitive bids on anyinsurance product. Best: Increase yourdeductible, says Kay. Although this means you could pay more out ofpocket in the event of a car accident or fire in your home, you cansave a significant amount of money by not expecting the insurancecompany to cover every small loss.
UtilitiesSure, you could start choppingwood for the fireplace, but is that really the best way to save on yourfuel bills? Good: Keep the thermostat set alittle lower in winter or a little higher in summer than usual. Itwon't take long for you to get accustomed to the slight temperaturechange, and even a few degrees' difference can mean money in the bank. Better: Ask your energy companyif it offers time-of-day rates. By using less energy during peak hours,you can pay less on your utility bill. This requires coordination withother family members. Kay says her electric company installs devices onappliances such as air conditioners that will switch off the unitduring high-demand times. By agreeing to have her air-conditioning unitswitched off if necessary, Kay gets a rebate of $50 per month on herutility bill. "I've never noticed a difference," she says. Shut-off timers for porch lights and water heaters can save money onutilities, but require an upfront investment in the device. Check withyour local utility company regarding how much money this strategy couldsave. Best: Go through acomplete homeowner's checklist to make sure your home is running atoptimal utility efficiency, recommends Kay. This means changing allfilters regularly, ensuring you have the right amount of insulation andcaulking your windows.
AppliancesWhen it's time to replace thatwasher or air conditioner, think energy efficiency as well as initialprice, says Kay.Good: Before you buy anyappliance, call the electric company to see if it has rebates availablefor special models, says Kay. It sometimes makes such offers toencourage you to buy an energy-efficient model. Better: Take advantage ofthe Internet. Kay suggests going to GoogleProduct Search to find great deals. "(You'll) find the verybest 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 localvendor and ask them to match it." Best: Buy barely used."Some people upgrade their appliances like they do their cars, a newone every year," says Kay. "I purchased a 1-year-old washer and dryerfor 50 percent off." It still had a warranty. For smaller appliances,Kay suggests going to garage sales and swap meets. "You wouldn'tbelieve what you can buy from people who have been watching QVC alittle too much," says Kay. And don't forget eBay, the online auctionsite, which is a great place to get appliances. Make sure you're buyingfrom a reputable known source that has a good rating, Kay cautions.Bankrate.comis the Web's leading aggregator of information on financial productsincluding mortgages, credit cards, new and used automobile loans, moneymarket accounts, certificates of deposit, checking and ATM fees, homeequity loans and online banking fees. Visit Bankrate.comto get the tools and information that can help you make the bestfinancial decisions.
Source: Money & Work
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