Online Checklist to Lower Your Bills
87 ways to save money, and counting...
1. It's expensive
2. Prices vary widely
3. It's easy to compare online
You can get quotes from local agents or online.
| SureHits will show you which companies offer competitive auto insurance rates in your area. They work with Geico, Progressive, Esurance and many other companies. This is a good option if you want to buy insurance directly from the company with no agent.
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| With InsureMe, you can easily get quotes from several local agents. You fill out one form, and local agents will call or e-mail you with your quote.
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Auto Insurance Savings Tips
1. Don't get collision insurance on older cars. For example, if your car is only worth $2,000 it's not worth paying $500/year to protect it.
2. With no tickets or accidents, your rate should usually go down over time. If not, you should renegotiate or switch providers.
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| SureHits will show you which companies offer competitive home insurance rates in your area. They work with Geico, Progressive, Esurance and many other companies. This is a good option if you want to buy insurance directly from the company with no agent.
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| With InsureMe, you can easily get quotes from several local agents. You fill out one form, and local agents will call or e-mail you with your quote.
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| Vonage looks and acts just like a regular phone. With Vonage, you can use your internet connection to make unlimited phone calls for a flat fee of $24.99/month. |
Another option is Skype. With your computer, you can talk for free to other Skype users, and make inexpensive calls to landlines and cell phones.
To use either Vonage or Skype, you must already have high-speed internet.
| If you call long-distance a lot, use a calling card. Don't pay more than a couple cents a minute. Beware of connection fees, though. |
Already have a cell phone? You might want to reconsider whether you need a landline at all. I haven't had one for 7 years.
Here are some pretty obvious tips for saving on traditional cell phones.
- If you send a lot of text messages, make sure your plan includes them. This is the biggest way people get burned.
- Don't buy ring tones, joke of the day, or other add ons.
- Get the cheapest plan, and save your long conversations for nights and weekends.
| Blockbuster Total Access offers movies by mail and at the store. Prices range from $4 to $20 per month. |
Want even better savings? In some cities, you can borrow movies from the public library for free.
And of course, if you really want to save money, just stop watching TV entirely.
1. Half of all bankruptcies are caused by health care expenses.
2. For the self insured, a high deductible health plan (HDHP) is probably cheaper than you think. With these plans you will pay for routine costs yourself, but you are covered in case of a serious health issue. In 2008, these plans cost as little as $60/month.
3. If you insure yourself with a high-deductible plan, you are eligible for tax deductions using a Health Savings Account.
4. If you don't have insurance, health care providers will charge you higher prices. For example, in 2005, a clinic charged me about $750 for a CT scan. The cost to uninsured patients? $1,500! My insurance company didn't cover the procedure, but I still saved 50% just for having insurance.
| eHealthInsurance will compare various health plans so you can choose the one that's right for you. It's pretty convenient and they have the most providers.
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| Use InsureMe if you want to get health insurance with a local agent. You fill out one form, and local agents will call or e-mail you with your quote.
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I am a little wary of sites like Lending Tree, which could cause you some headache.
Try talking to your local bank, credit union, or mortgage broker. But be wary of hidden fees, rate hikes and other traps. This is one situation in which it pays to consult a lawyer before signing.
If you do have debt, considering switching cards to get a temporary 0% interest rate. Make sure that there is no balance transfer fee, however.
For those who qualify, Citi offers a card with a 0% APR for up to 12 months. One of our users writes: "We had transferred our debt onto it and enjoyed the grace period while we paid it down. The rate is still very good."
Jason Skinrood, of PlasticRewards.com, wrote to recommend these other cards:
Bank of America WorldPoints Platinum Plus: A popular reward credit card that lets you transfer a balance at 0% for 12 months. Balance transfers are subject to a 3% fee.
Discover More Card: Excellent customer service on a popular balance transfer card. Transfer fee. 0% APR for 12 months.
Clear from American Express: No balance transfer fees with excellent customer service. Get a fixed 3.99% APR for 12 months.
HSBC Cards: Several cards to choose from that offer 0% APR for 12 months. Balance transfer fee of 3%.
It looks like that card isn't available anymore, but Citi does offer some other decent cash back cards.
Jason Skinrood, of PlasticRewards.com, recommended these reward cards to us:
Blue Cash from American Express: A very popular card good for big spenders with excellent credit. Cash rebates up to 5% are tiered and American Express features excellent service.
Chase Freedom: Popular cash back card that is good for small spenders. Earn 3% cash back on top three spending categories with bonus cash and enhancement opportunities as a Chase banking customer. Some categories limited to $18 in rebates per month.
Costco American Express: This card is quickly becoming very popular because of the large 3% gas rebate. Card features excellent customer service but you receive your rebate as a Costco gift card.
Discover More Cards: The cards feature excellent customer service and earn up to 5% cash back. Rebates are tiered and Discover offers additional promotions throughout the year.
| Interest Rates (APY) - May 2008 | ||
| ING Direct | Average Checking | |
| 3.00% | < 1.00% | |
If you have $10,000 in a no-interest checking account, you could earn an extra $300/year by putting this money in an ING Direct account.
| I personally use ING Direct. It's really easy to link my ING account to my other accounts, so I can easily transfer money in and out. Their website works great, and my deposits are FDIC insured, meaning that my money is as safe as in any bank. |
I highly recommend reading A Random Walk Down Wall Street. This book does a good job of explaining how the stock market works, including many common pitfalls and misconceptions.
Here are some general rules for stock investment:
1. Only invest money you won't need for at leat 5 years.
2. Don't frequently trade stocks. Buy and hold.
3. Diversify your portfolio.
4. Invest in mutual funds with low expense ratios.
| $100,000 invested for 20 years - 10% return | ||
| Fund w/ Low Expense Ratio (0.3%) | Fund w/ High Expense Ratio (2.0%) | |
| $636,990 | $466,096 | |
I personally use Vanguard Mutual Funds, which have very low expense ratios.
We also recommend investing as much as possible in your IRA, which allows you to invest with lower taxes.
- Program the temperature. No point in wasting electricity while nobody is home.
- Fans can sometimes work almost as well as AC, and at a lower cost.
- In hot weather, close the shades during the heat of the day. Let the sun heat your house in the winter.
- Use a clothesline instead of a dryer.
- Compact flourescent bulbs use about 75% less electricity than incandescents.
- Some cities will charge you less for garbage if you use a smaller can.
- Use a cash-back card. Some cards, such as the Citi Dividend Platinum Select card give you 2% or more cash back on gas.
- Check your tire pressure regularly. This can reduce fuel consumption by 3%.
- Take off the luggage rack! If you are driving around with a luggage rack, you could be reducing your fuel efficiency by 10%. Take it off it you aren't using it.
- Clean out your trunk. Some people use their cars as a second closet. All this extra weight reduces your mileage.
- Don't buy premium. Premium gas will not help your mileage or your performance unless your car's manual specifically says you need it. If not, just buy regular.
- Know when to use the AC. At slow speeds, it is more efficient to just roll down the windows. At high speeds, air conditioning is more fuel efficient because rolling down the windows increases wind resistance.
- Avoid long idles. Turn off your car instead of idling for long periods.
- Drive slower on the highway:
- Oil changes. Check your manual. You probably don't need oil changes every 3,000 miles.
- Engine flushes are a scam. Don't fall for "engine flushes" or other expensive add-ons at quickie oil-change places.
- Don't put additives in your gas tank. They don't work.
- The best strategy is to live in a place where you can walk to work, walk to shops and your children can walk to school. It's great for your budget and your health.
- If you do the same route every day, try car pooling or taking public transport. There are lots of carpool websites to help, including eRideshare.com, CarpoolConnect.com and RideSearch.com. You could save time driving in HOV lanes and avoid the stress of traffic.
- Many families live without a car and use FlexCar.com when they need a car for a few hours.
- Clip coupons. Find coupons here or in your local newspaper.
- Buy generic. Many generic products are identical to the more expensive brand names, especially in the pharmacy. Haven't tried generic recently? Some store brands, such as Safeway Select, can actually be better than the brand names.
- Buy what's on sale. Stock up on your favorite brands when they're on sale. Otherwise, just buy whatever's on sale. You'll appreciate the variety and savings.
- Double-check the price. Watch the register as items are scanned. Make sure you are charged accurately and that you actually do receive the coupon rate.
- Don't Overeat. Skip on the overpriced appetizers and desserts. Better yet, split an appetizer, entree, and dessert between two people.
- Pre-Drink. Instead of two drinks at the bar, have one drink at your friend's house before heading out.
- Hold the Milk. For me, drip coffee tastes just as good as a latte. It's healthier too, and half the price.
- I'm Slumming It. Gotta have the latte? McDonald's is about 25% cheaper than Starbucks, and is just as good according to taste tests.
- The Best Way to Save. Socialize at home with your friends, using food and drinks from the grocery store. Make your own coffee, and see how much you'll save.
Expect to save 50% - 90% off the new price for furniture, electronics and more. Don't forget to negotiate!
Many used clothing stores such as Buffalo Exchange sell like-new name-brand clothing for pretty decent prices.
- Buy Used. This is kind of a no-brainer. If you can't find used books locally, try Amazon.com.
- Use the School Library. Don't buy the book. Just use the reserve copy at the school library.
- Use an Old Edition. Ask the professor if you can use an older edition
Used Calculus Textbook Price on Amazon.com - May, 2008 4th edition (2004) 3rd edition (2001) $47.00 $1.73 Calculus hasn't changed. The publishers just put out new editions to sell more books. What a scam!
- Always Sell Back. You may think you'll need that textbook again one day. But if you're like 99% of us, you'll never open it again. Even if you change your mind, textbooks lose their value fast. You'll always be able to buy it back again for cheaper.
- Some insurance companies give rebates on gym memberships if you prove that you're going to the gym. Worth asking about!
Did you know? Millions of people outside the United States don't actively exercise and maintain a healthy weight. Combine exercise into your daily life by walking instead of driving and eating moderate portions of healthy food. It will help your waistline and your budget.
You might also consider banking at a credit union instead of a bank. They are less likely to charge annoying fees.
Apparently, even big box stores are sometimes willing to negotiate.
Be wary of extended service plans. They are usually a rip-off, and in any case, you will have the manufacturer's warranty.
Of course, the best way to save is to buy used. Try searching Craig's List.
- Dare to Compare. JetPunk allows you to search several other sites, including discount airlines like Southwest.
- Still Around. Very occasionally, you can still get a better deal with a local travel agent, usually on international flights. It's at least worth a shot.
- Name Your Price. Priceline lets you name your own price. This never works for flights, but for hotels you can save a lot. Here's a tip to getting a great rate: always low ball your first bid. You will get the option to increase it later, so why not start low? Keep in mind that prices are often lower during the off-season and on weekdays. Shoot for a nice hotel while you're at it, since prices for higher quality hotels can be about the same as for lower quality hotels. Expect to save at least 50%.
- Hostels. If you are traveling alone, youth hostels can be an inexpensive option, usually around $20/night. If traveling with others, you might save money staying in a hotel, since hostels charge on a per-person basis. For the very frugal, some hostels will let you stay for free in exchange for work. Check out Hostelz.com for a good directory of hostels.
- Shop Around. JetPunk is a simple site that lets you quickly search several hotel sites. A good way to cover your bases.
- Ask About Discounts. Are you a senior? An AAA member? A veteran? Ask the hotel if they can give you a discount. Also ask about weekly rates.
- Haggle. If all else fails, negotiate. Most independently-owned hotels will bargain with you over the phone, especially at the last minute. Remember that if they have vacancy, they want to fill it, so don't be embarrassed to start low.
- Who Needs It? Do you plan on spending a lot of time in your hotel? If not, then don't waste money on a nice hotel. In some areas, camping can be a great option. Want to save even more? Stay with friends or family.
- Make New Friends. Want to stay for free, but don't have any friends where you're going? Check out CouchSurfing.com. It's a free web service that connects travelers and people willing to host them for free. A rating system helps to prevent bad experiences.
Usually your rental car is insured by your existing car insurance or your credit card. If so, don't pay for the extra insurance.
Don't go for any of the rental company's gas schemes. The cheapest way is to fill it yourself before you return it.
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