Tips, Ways How to Save Money
66 Ways to Save Money.
Practical ways to cut everyday costs on transportation, insurance, banking, credit, housing, utilities, food, and more
Transportation
Airline Fares
You may lower the price of a round trip air fare by as much as two-thirds by making certain your trip includes a Saturday evening stay over, and by purchasing the ticket in advance.
To make certain you have a cheap fare, even if you use a travel agent, contact all the airlines that fly where you want to go and ask what the lowest fare to your destination is.
Be flexible, if possible. Consider using low fare carriers or alternative airports and keep an eye out for fare wars.
http://www.ftc.gov/bcp/conline/pubs/autos/carrent.htm
New Cars
You can save thousands of dollars over the lifetime of a car by selecting a model that combines a low purchase price with low financing, insurance, gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that contain this information.
Having selected a model, you can save hundreds of dollars by comparison shopping. Call at least five dealers for price quotes and let each know that you are calling others.
Remember there is no "cooling off" period on new car sales. Once you have signed a contract, you are obligated to buy the car.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/autos/newcar.htm
Used Cars
Before buying any used car:
Compare the seller's asking price with the average retail price in a "bluebook" or other guide to car prices found at many libraries, banks, and credit unions.
Have a mechanic you trust check the car, especially if the car is sold "as is."
Consider purchasing a used car from an individual you know and trust. They are more likely than other sellers to charge a lower price and point out any problems with the car.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/autos/usedcar.htm
Auto Leasing
Don't decide to lease a car just because the payments are lower than on a traditional auto loan. The leasing payments may be lower because you don't own the car at the end of the lease.
Leasing a car is very complicated. When shopping, consider the price of the car (known as the capitalized cost), your trade-in allowance, any down payment, monthly payments, various fees (excess mileage, excess "wear and tear," end-of- lease), and the cost of buying the car at the end of the lease. Keys to Vehicle Leasing: A Consumer Guide, published by the Federal Reserve Board and Federal Trade Commission, is a valuable source of information about auto leasing.
Web Resource: http://www.federalreserve.gov/pubs/leasing
Gasoline
You can save hundreds of dollars a year by comparing prices at different stations, pumping gas yourself, and using the lowest-octane called for in your owner's manual.
You can save up to $100 a year on gas by keeping your engine tuned and your tires inflated to their proper pressure.
Web Resource: http://www.fueleconomy.gov/
Insurance
Car Repairs
Consumers lose billions of dollars each year on unneeded or poorly done car repairs. The most important step that you can take to save money on these repairs is to find a skilled, honest mechanic. Before you need repairs, look for a mechanic who:
is certified and well established;
has done good work for someone you know; and
communicates well about repair options and costs.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/autos/autorpr.htm
Auto Insurance
You can save several hundred dollars a year by purchasing auto insurance from a licensed, low-price insurer. Call your state insurance department for a publication showing typical prices charged by different companies. Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.
Talk to your agent or insurer about raising your deductibles on collision and comprehensive coverage to at least $500 or, if you have an old car, dropping this coverage altogether. Taking these steps can save you hundreds of dollars a year.
Make certain that your new policy is in effect before dropping your old one.
Web Resources: http://www.naic.org/1regulator/usamap.htm or http://www.consumer.gov
Homeowner/Renter Insurance
You can save several hundred dollars a year on homeowner insurance and up to $50 a year on renter insurance by purchasing insurance from a low-price, licensed insurer. Ask your state insurance department for a publication showing typical prices charged by different licensed companies. Then call at least four of the lowest priced insurers to learn what they would charge you. If such a publication is not available, it is even more important to call at least four insurers for price quotes.
Make certain you purchase enough coverage to replace the house and its contents. "Replacement" on the house means rebuilding to its current condition.
Make certain your new policy is in effect before dropping your old one.
Web Resource: and http://www.fema.gov/
Life Insurance
If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.
If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.
Check the National Association of Insurance Commissioners website (http://www.naic.org/cis/) or your local library for information on the financial soundness of insurance companies.
Web Resource: http://www.pueblo.gsa.gov/acli/index.htm
Banking/Credit
Checking
You can save more than $100 a year in fees by selecting a checking account with a low (or no) minimum balance requirement that you can, and do, meet. Request a list of these and other fees (including ATM and debit card fees) that are charged on these accounts.
Banking institutions often will drop or lower checking fees if paychecks are directly deposited by your employer. Direct deposit offers the additional advantages of convenience, security, and immediate access to your money.
Web Resource: http://www.frbatlanta.org/invoke_brochure.cfm
Savings and Investment Products
Before opening a savings or investment account with a bank or other financial institution, find out whether the account is insured by the federal government (FDIC or NCUA). An increasing number of products offered by these institutions, including mutual stock funds and annuities, are not insured.
To earn the highest return on savings (annual percentage yield) with little or no risk, consider certificates of deposit (CDs) or U.S. Savings Bonds (Series I or EE).
Once you select a type of savings or investment product, compare rates and fees offered by different institutions. These rates can vary a lot and, over time, can significantly affect interest earnings.
http://www.sec.gov/investor/pubs/roadmap.htm
Credit Cards
You can save as much as a thousand dollars or more each year in lower credit card interest charges by paying off your entire bill each month or by using a check, cash or debit card for purchases.
If you are unable to pay off a large balance, pay as much as you can and switch to a credit card with a low annual percentage rate (APR). You can obtain listings of low-rate credit cards through http://www.cardlocator.com/> or http://www.bankrate.com/ (click on credit cards), which provide information at no charge to consumers.
You can reduce credit card fees, which may add up to well over $100 a year, by getting rid of all but one or two cards, and by avoiding annual, late payment, and over-the-credit limit fees.
Web Resource: http://www.federalreserve.gov/pubs/shop
Auto Loans
If you have significant savings earning a low interest rate, consider making a large down payment or even paying for the car in cash. This could save you as much as several thousand dollars in finance charges.
You can save as much as hundreds of dollars in finance charges by shopping for the cheapest loan. Contact several banks, your credit union, and the auto manufacturer's own finance company.
http://www.fdic.gov/consumers/looking/index.html
Mortgage Refinancing
Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more. Ask an accountant to calculate precisely how much your new mortgage (including points, fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.
http://www.hud.gov/buying
Renting a Place to Live
Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to live and contact their building manager or owner to see if anything is available.
Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.
Web Resource: http://www.hud.gov/renting/index.cfm
Home Improvement
Home repairs often cost thousands of dollars and are the subject of frequent complaints. Select from among several well established, licensed contractors who have submitted written, fixed-price bids for the work.
Do not sign any contract that requires full payment before satisfactory completion of the work.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/services/homeimpv.htm and http://www.ftc.gov/bcp/conline/edcams/homeimp/index.html
Major Appliances
Consult Consumer Reports, available in most public libraries, for information about specific brands and how to evaluate them, including energy use. There are often great price and quality differences among brands.
Once you've selected a brand, check the phone book to learn what stores carry this brand, then call at least four of these stores for the prices of specific models. After each store has given you a quote, ask if that's the lowest price they can offer you. This comparison shopping can save you as much as $100 or more.
http://hes.lbl.gov/hes
Telephone Service
At least once a year review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies, including wireless companies, to find an inexpensive calling plan that meets your needs.
If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums.
Check your phone bill to see if you have optional calling services you don't use. Each option you drop could save you $40 or more each year.
Before making calls when away from home, compare per minute rates and surcharges for different prepaid phone cards and calling card plans to find the one that saves you the most money.
Dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra.
If you use a wireless phone, make sure your wireless calling plan covers the calls you typically make. Understand promotions, peak calling periods, area coverage and roaming, and long distance requirements to avoid paying too much.
Web Resource: http://www.fcc.gov/cgb/wirelessphone.pdf and http://www.fcc.gov/cib/
Other
Food Purchased at Markets
You can save hundreds of dollars a year by shopping at the lower-priced food stores. Convenience stores often charge the highest prices.
You will spend less on food if you shop with a list.
You can save hundreds of dollars a year by comparing price-per-ounce or other unit prices on shelf labels. Stock up on those items with low per-unit costs.
66 Ways to Save Money.
Practical ways to cut everyday costs on transportation, insurance, banking, credit, housing, utilities, food, and more
Transportation
Airline Fares
You may lower the price of a round trip air fare by as much as two-thirds by making certain your trip includes a Saturday evening stay over, and by purchasing the ticket in advance.
To make certain you have a cheap fare, even if you use a travel agent, contact all the airlines that fly where you want to go and ask what the lowest fare to your destination is.
Be flexible, if possible. Consider using low fare carriers or alternative airports and keep an eye out for fare wars.
http://www.ftc.gov/bcp/conline/pubs/autos/carrent.htm
New Cars
You can save thousands of dollars over the lifetime of a car by selecting a model that combines a low purchase price with low financing, insurance, gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that contain this information.
Having selected a model, you can save hundreds of dollars by comparison shopping. Call at least five dealers for price quotes and let each know that you are calling others.
Remember there is no "cooling off" period on new car sales. Once you have signed a contract, you are obligated to buy the car.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/autos/newcar.htm
Used Cars
Before buying any used car:
Compare the seller's asking price with the average retail price in a "bluebook" or other guide to car prices found at many libraries, banks, and credit unions.
Have a mechanic you trust check the car, especially if the car is sold "as is."
Consider purchasing a used car from an individual you know and trust. They are more likely than other sellers to charge a lower price and point out any problems with the car.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/autos/usedcar.htm
Auto Leasing
Don't decide to lease a car just because the payments are lower than on a traditional auto loan. The leasing payments may be lower because you don't own the car at the end of the lease.
Leasing a car is very complicated. When shopping, consider the price of the car (known as the capitalized cost), your trade-in allowance, any down payment, monthly payments, various fees (excess mileage, excess "wear and tear," end-of- lease), and the cost of buying the car at the end of the lease. Keys to Vehicle Leasing: A Consumer Guide, published by the Federal Reserve Board and Federal Trade Commission, is a valuable source of information about auto leasing.
Web Resource: http://www.federalreserve.gov/pubs/leasing
Gasoline
You can save hundreds of dollars a year by comparing prices at different stations, pumping gas yourself, and using the lowest-octane called for in your owner's manual.
You can save up to $100 a year on gas by keeping your engine tuned and your tires inflated to their proper pressure.
Web Resource: http://www.fueleconomy.gov/
Insurance
Car Repairs
Consumers lose billions of dollars each year on unneeded or poorly done car repairs. The most important step that you can take to save money on these repairs is to find a skilled, honest mechanic. Before you need repairs, look for a mechanic who:
is certified and well established;
has done good work for someone you know; and
communicates well about repair options and costs.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/autos/autorpr.htm
Auto Insurance
You can save several hundred dollars a year by purchasing auto insurance from a licensed, low-price insurer. Call your state insurance department for a publication showing typical prices charged by different companies. Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.
Talk to your agent or insurer about raising your deductibles on collision and comprehensive coverage to at least $500 or, if you have an old car, dropping this coverage altogether. Taking these steps can save you hundreds of dollars a year.
Make certain that your new policy is in effect before dropping your old one.
Web Resources: http://www.naic.org/1regulator/usamap.htm or http://www.consumer.gov
Homeowner/Renter Insurance
You can save several hundred dollars a year on homeowner insurance and up to $50 a year on renter insurance by purchasing insurance from a low-price, licensed insurer. Ask your state insurance department for a publication showing typical prices charged by different licensed companies. Then call at least four of the lowest priced insurers to learn what they would charge you. If such a publication is not available, it is even more important to call at least four insurers for price quotes.
Make certain you purchase enough coverage to replace the house and its contents. "Replacement" on the house means rebuilding to its current condition.
Make certain your new policy is in effect before dropping your old one.
Web Resource: and http://www.fema.gov/
Life Insurance
If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.
If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.
Check the National Association of Insurance Commissioners website (http://www.naic.org/cis/) or your local library for information on the financial soundness of insurance companies.
Web Resource: http://www.pueblo.gsa.gov/acli/index.htm
Banking/Credit
Checking
You can save more than $100 a year in fees by selecting a checking account with a low (or no) minimum balance requirement that you can, and do, meet. Request a list of these and other fees (including ATM and debit card fees) that are charged on these accounts.
Banking institutions often will drop or lower checking fees if paychecks are directly deposited by your employer. Direct deposit offers the additional advantages of convenience, security, and immediate access to your money.
Web Resource: http://www.frbatlanta.org/invoke_brochure.cfm
Savings and Investment Products
Before opening a savings or investment account with a bank or other financial institution, find out whether the account is insured by the federal government (FDIC or NCUA). An increasing number of products offered by these institutions, including mutual stock funds and annuities, are not insured.
To earn the highest return on savings (annual percentage yield) with little or no risk, consider certificates of deposit (CDs) or U.S. Savings Bonds (Series I or EE).
Once you select a type of savings or investment product, compare rates and fees offered by different institutions. These rates can vary a lot and, over time, can significantly affect interest earnings.
http://www.sec.gov/investor/pubs/roadmap.htm
Credit Cards
You can save as much as a thousand dollars or more each year in lower credit card interest charges by paying off your entire bill each month or by using a check, cash or debit card for purchases.
If you are unable to pay off a large balance, pay as much as you can and switch to a credit card with a low annual percentage rate (APR). You can obtain listings of low-rate credit cards through http://www.cardlocator.com/> or http://www.bankrate.com/ (click on credit cards), which provide information at no charge to consumers.
You can reduce credit card fees, which may add up to well over $100 a year, by getting rid of all but one or two cards, and by avoiding annual, late payment, and over-the-credit limit fees.
Web Resource: http://www.federalreserve.gov/pubs/shop
Auto Loans
If you have significant savings earning a low interest rate, consider making a large down payment or even paying for the car in cash. This could save you as much as several thousand dollars in finance charges.
You can save as much as hundreds of dollars in finance charges by shopping for the cheapest loan. Contact several banks, your credit union, and the auto manufacturer's own finance company.
http://www.fdic.gov/consumers/looking/index.html
Mortgage Refinancing
Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more. Ask an accountant to calculate precisely how much your new mortgage (including points, fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.
http://www.hud.gov/buying
Renting a Place to Live
Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to live and contact their building manager or owner to see if anything is available.
Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.
Web Resource: http://www.hud.gov/renting/index.cfm
Home Improvement
Home repairs often cost thousands of dollars and are the subject of frequent complaints. Select from among several well established, licensed contractors who have submitted written, fixed-price bids for the work.
Do not sign any contract that requires full payment before satisfactory completion of the work.
Web Resource: http://www.ftc.gov/bcp/conline/pubs/services/homeimpv.htm and http://www.ftc.gov/bcp/conline/edcams/homeimp/index.html
Major Appliances
Consult Consumer Reports, available in most public libraries, for information about specific brands and how to evaluate them, including energy use. There are often great price and quality differences among brands.
Once you've selected a brand, check the phone book to learn what stores carry this brand, then call at least four of these stores for the prices of specific models. After each store has given you a quote, ask if that's the lowest price they can offer you. This comparison shopping can save you as much as $100 or more.
http://hes.lbl.gov/hes
Telephone Service
At least once a year review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies, including wireless companies, to find an inexpensive calling plan that meets your needs.
If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums.
Check your phone bill to see if you have optional calling services you don't use. Each option you drop could save you $40 or more each year.
Before making calls when away from home, compare per minute rates and surcharges for different prepaid phone cards and calling card plans to find the one that saves you the most money.
Dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra.
If you use a wireless phone, make sure your wireless calling plan covers the calls you typically make. Understand promotions, peak calling periods, area coverage and roaming, and long distance requirements to avoid paying too much.
Web Resource: http://www.fcc.gov/cgb/wirelessphone.pdf and http://www.fcc.gov/cib/
Other
Food Purchased at Markets
You can save hundreds of dollars a year by shopping at the lower-priced food stores. Convenience stores often charge the highest prices.
You will spend less on food if you shop with a list.
You can save hundreds of dollars a year by comparing price-per-ounce or other unit prices on shelf labels. Stock up on those items with low per-unit costs.
66 Ways to Save Money.
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