Saving money

Tips To Save On Appliances

2007-06-11T16:42:00.000-07:00

1. Extended warranties on appliances are rarely worth the cost, especially if the manufacturer offers a 90-day or 1-year warranty. The cost of an extended warranty is almost always higher than the cost of replacing or fixing an appliance if there's a problem with it.

2. If you are in the market to buy a gas oven or range, purchase one with an automatic electric ignition system. An electric ignition saves gas since there is not a pilot light continuously burning.

3. If you have a light odor coming from your garbage disposal, put 10 to 20 ice cubes down it every two weeks or so. Ice will sharpen the blades and break up grease and residue in the disposal saving you the cost of having to perfume over the smell.

4. If your dishes aren't getting clean in your dishwasher, check the dishwasher screen on the inside. Food particles can build up and plug the screen which blocks water from the pump and keeps your dishes from getting clean.

5. Instead of turning off the oven when you take your dish out, turn it off several minutes before the dish is completely done. The remaining heat in the oven will finish the cooking.

6. Leaky toilets account for more than 10% of water usage in the US. To find out if yours is leaking, put a little non-staining coloring in the water tank which will show whether water is leaking from the tank into the bowl.

7. Newer washers use only about 40 percent of the energy models that are 10 years old use. Replacing an older appliance can save a significant amount in energy costs and end up paying for itself.

8. Protect and prolong the plastic gasket on your refrigerator by taking a thin coat of Vaseline and putting it all the way around. This will make the gasket more pliable so you won't lose as much air and the refrigerator will run more efficiently.

9. Save money and wear on your clothes by using a third of the recommended amount of laundry detergent. Detergent is hard on clothes and builds up in the machine. One-third the recommended amount should still get your clothes clean.

10. Take advantage of ENERGY STAR labels when purchasing appliances. ENERGY STAR is a government sponsored program created to help consumers identify energy-efficient appliances and products.

11. Test your refrigerator door seals by closing the door over a dollar bill so it is hanging half in and half out. If you are able to pull the bill out easily, you need to adjust the latch or the seal may need replacing. Putting a thin coat of Vaseline along the seal may also help.

12. When given a choice, use your microwave in place of your oven. A microwave costs around five cents per hour to operate while a standard oven runs about 11 cents per hour.

13. When purchasing appliances, check for display models that may have minor dents or scratches since these are usually discounted. If you find an appliance that has minor surface damage, ask for a discount.

14. When using the oven to bake, don't open the door more than necessary. Opening the door wastes energy and increases the cooking time of the dish being made.

15 You can freshen the air in your entire house without buying costly air fresheners by simply squeezing a few drops of fresh lemon or orange into the dust bag of your vacuum cleaner.

i think the cost of cookin varies on what you cook with in the microwave. circulation for food is as important as it is to you, using round containers with feet on the bottom will cook quicker and more evenly w/o corners to burn. i was also told at a tupperware class, that cooking 100 hrs in the microwave costs 3 dollars vs 75 for a stove for 100 hrs. and the nutrients are higher in a container with a lid for the microwave. the steam dont escape which is the nutrients leaving the food. tupperware has a product for 20 dollars thats round, has feet has a lid and a steamer plate in it. i think its worth the investment.

This may be somewhat off-topic, but there are risks associated with cooking in any plastic. The plastic leaches into the food and can mimic estrogen and cause medical issues.

my teacher had cancer and was taught marcobiotics for healthier living. i feel your observation is too broad, some plastics are made just for cooking and wouldnt be allowed to sell as a microwave safe product if it were not safe to use. another item some may not know
now these days they make those colored over white glass dishes for cooking in the oven, they have clear glass lids, most of them are oblong shaped. they used to be exclusive to hospital use, and they were not made for cooking. i seen people selling these at garage sales that they stole while in the hospital and such. these are origanally made for chemology use only. thats where they test your bodily fluids and functions for cancer remition. i only use in my microwave, stuff made for cooking in the microwave. i dont believe your comment about all plastic, im sure tupperware has marketing paperwork to show on this issue. and how thier products are made differently and safe for use. ill be looking for it, if and when i find it i will post it.

Saving Tips For Shopping

2007-06-10T16:25:00.000-07:00

1. Make a list before yo go grocery shopping. Estimates are that people spend as much as 40% more on impulse purchases when they shop without a list.

2. Take a minute to check your receipt before you leave the grocery store. Computerized scanners are only as accurate as the information input into them which is sometimes incorrect or a non-sale price.

3. Take the time to comparison shop. Even if the store with the lowest price is too far from your home, you can still probably get the item you want for that price. Go to your local store with the advertisement in hand. Many stores will meet the price of the same item advertised elsewhere.

4. Before you go out and buy a new item that you will only use infrequently, see if you can borrow it from a friend or neighbor.

5. Consider bartering or trading goods and services with others instead of paying cash.

6. Buy clothes at seasonal changes to to get up to 80% off the original price. Be sure, however, to only buy items you are actually going to wear. A "great deal" is a 100% loss if you never wear it.

7. Check your local newspaper classifieds for public storage auctions. Public storage companies will auction off abandoned items in order to recover their lost fees. You can often pick up great deals on a wide variety of items at these auctions.

8. Get in and out of the grocery store as quickly as possible. Surveys show that a person spends an extra 50 cents each additional minute they stay in a grocery store beyond 30 minutes.

9. Go shopping with a full stomach. Studies show that people spend about 10% more if they shop on an empty stomach compared to a full one.

10. If you are looking to make a large item purchase, shop at the end of the month or at the end of the quarter. This is usually when sales staff and vendors have to meet their quotas and they will be more likely to give a better deal in order to make quota.

11. Make sure to check the upper and lower shelves when shopping. Items stocked at eye level are usually the most expensive. Less expensive items can usually be found in the harder to see areas of the upper and lower shelves.

12. Once you find something that you want to purchase online, take some time to do an online search for a coupon or coupon code offered by the merchant. Taking a few minutes to check can possibly result in savings of 10% or more.

13. Read the fine print on store "zero-percent financing" offers. While these can be excellent deals, some programs have interest charges accrue from the date you make the purchase if you don't pay off the entire amount when the 0% time limit ends.

14. Save and file the UPC codes from the products you consistently purchase. The next time there's a contest that requires a proof of purchase, you will already have a supply on hand to reap the rewards.

15. To truly reap the benefit of using coupons, have the cashier total your bill before subtracting out your coupons. Write a check for the pre-coupon total. The cash you receive back, or your coupon savings, can then be placed in your saving account.

16. Try to consolidate your grocery shopping into one weekly run. Not only does this help on restricting impulse buying, it also saves you time and money by reducing the number of times you must travel between the store and your house each week.

17. Try to do your grocery shopping during off peak hours. This will not only save you time, but will also mean less time waiting at the cash register where all the compulsive buy items are placed.

18. Utilize your local $1.00 store for health and beauty items for prices lower than supermarkets or drugstores. You may be surprised at the variety of quality goods and food you can get there these days.

19. When purchasing big ticket items, you don't necessarily have to run all over town to get the best price. Search the newspaper sale fliers for the best price, go to your local store and simply ask, "Can you beat this price?" Often they will.

20. When shopping, buy the amount you need. Just because something is on sale doesn't mean you need to purchase a large quantity of it. Buy only what you know you will use and no more.

21. When shopping, make a list of the items you need and stick to it. Estimates of the total amount purchased by shoppers at the grocery store that are impulse buys (not what you went to the store to get) run as high as 40%.

22. Whenever possible, avoid shopping at convenience stores. You'll pay some of the largest product markups on the goods bought there - the price for the store's convenience.

23. You can save hundreds of dollars a year shopping by learning to compare price-per-ounce costs instead of going only by package price. Buy those items with the lowest price-per-ounce cost and you will be getting a better value for your money.

Buy during clearances and out of season
Me and my wife make a habit of buying out of season and on clearance...

There has been times where we have walked out of old navy, gap and others alike With coats, shirts, pants for 1/10 of original cost!!

Ex. at old navy they have some jackets clearanced and the origianl price is 90 on sale for 20.

Picked up 3 T-shirst org. 8-10 paid .99

Target also clearances item quite often especially season stuff like sporting goods I have picked up coolers for 2 bucks.. Bats for 5 bucks regulary 50 and so on.

Not to mention if you know where you are going to be shopping do search on the net for coupons as that can save you a bundle.

Going to the grocery store without a list is downright dangerous, isn't it? I'd wind up impulse buying and forgetting some things I should have bought.

I'd like to take this one step further: how many of us actually sit down and plan our menus for at least a week in advance? Based on the survey results at one of my group survey sites, a large number of people said that they usually shop once a week.

Planning your menus ahead of time for the week really helps you to shop more efficiently. You can decide what you want and see what you already have at home and what you actually need to buy in order to make dinner.

There is a book called Saving Dinner that has recipes *and* the shopping list for the meal included! Many people have praised this book and how it has helped them to save money.

So, make up your menus and shop at home first (meaning see what ingredients you already have at home to make up a meal or two --- keeps things in your cupboards from getting old!) then make your list.

Uh-oh...all this talk about food is making me hungry. Not good at this hour, LOL!

Margaret Kur

Control Your Spending and Borrowing, and You'll Control Your Financial Future

2007-05-28T02:08:00.000-07:00

Neither a Borrower Nor a Spender Be

When I was growing up, my mother often quoted William Shakespeare's "neither a borrower nor a lender be." Wise advice, if you can stick to it.

Nowadays, borrowing to buy a home is considered by even the most conservative financial experts to be a good move, but spending is a big problem, as evidenced by the millions of Americans who are in debt over their heads. Nowadays Shakespeare might be more likely to advise us to "neither a borrower nor a spender be."

It's spending, not low income, that is at the root of most financial problems. Sometimes events beyond our control can propel us into debt, like the loss of a job, the death of a spouse, or large medical bills, but let's face it: for most of us, spending is what gets us into trouble. In fact, I believe that the key to having money is learning not to spend it.

Notice that I didn't say "learning how to spend it," but rather, "learning not to spend it.

The more money most people make, the more they spend. If they get a raise in salary--they buy a newer car, or a bigger home, or a bigger, better whatever. But it's not just the big things they buy, it's all the little things they now feel they can easily afford, and those things add up amazingly quickly.

You may find that over the years, although you're making significantly more money, you're no further ahead, or you still struggle to meet your financial obligations.

The words used in the campaign against drugs also apply to over spending: "Just Say No." One of the keys to resisting the urge to spend money is to have concrete financial goals, things that are important to you. Set a timeframe and a dollar amount for reaching the goal. Then when you're faced with the temptation to splurge, think about the goal you're working towards. Visualize it as clearly as you can. See it. Taste it. Smell it. And just say "no."

The Secret To Saving Money

2007-05-28T02:04:00.000-07:00

You CAN Save For Your Future
Saving money is a basic concept of personal financial planning, and key to financial success. Yet many of us don't have a formal savings plan. Without such a plan, the chances of ever saving enough money to meet long-term financial goals or achieve financial security are very slim.

It seems simple. In order to save money, you need to have "extra" cash, right? This is a common misconception. Having a spending plan (aka "budget"), will help you create money for savings. Most of us, by setting spending goals, can manage to save regularly, so if you're tempted to hit your back button because you simply don't have enough money to have a formal savings plan, STOP! This article will tell you the "secrets" to savings.

First, set a few short-term and long-term financial goals to work towards, like a down payment on a car or home.

Include the dollar amount and a time frame for achieving the goal. It's much more motivating to save when you know what you're saving for. And remember, a goal that isn't written down is only a dream.

Set up a separate savings account. If you mingle your savings with your regular checking account, you'll almost certainly dip into your savings and may never pay them back. Having your savings in a separate account is a constant reminder that these funds are earmarked for your future, and watching the balance grow is not only rewarding and motivating - it's downright exciting!

If you don't already have a written budget that includes tracking your expenditures each month, begin one now. Whether you make thousands of dollars or hundreds of thousands of dollars a year, you need a budget. Budgeting can be relatively simple and entirely guilt-free. See Budgeting 101 for simple, easy budgeting.

Decide on a percentage of your gross income to designate as savings. 10% is a good starting point, but if you've developed a budget and have analyzed your spending and you honestly can't find a way to set aside 10% for your future, then start out with 8%, or 5%, or whatever you're able to do with perhaps a little bit of discomfort but without great sacrifice.

If possible, have your employer or your spouse's employer deduct a set amount from your paycheck each pay period and deposit it into your savings account automatically. The old adage "out of sight, out of mind" works well here. Having to transfer money to your savings account is a little like giving someone who is trying to quit smoking a cigarette to carry around in his pocket and expecting him not to light up. Why tempt yourself? Make it easy and increase your chances of success with automatic deposits or transfers.

Whenever unexpected money comes your way, put all or most of it into your savings account. Bonuses, salary increases, tax refunds, rebates, overtime pay, income from hobbies or yard sales and other windfalls can pump up your savings account nicely without requiring additional cutbacks.

If you're forced to dip into your savings for an emergency, consider it a loan which must be paid back in a reasonable period of time, and set up a repayment schedule.

That's all there is to it! The "secret" is that there's no magic involved. The key is to start now and stick to it.

From Apply Now

Pretty Nails for a Whole Lot Less...

2007-05-26T17:30:00.000-07:00

Hello Ladies!

As many of you out there are guilty for paying expensive nail salon prices, so am I. For the past few years, I became hooked on my pretty french-tipped acrylic nails. I receive so many compliments on them, my fingers look dainty, and my rings look so much prettier when my nails are all dressed up.

Here's the thing ladies, do you realize how much money has gone down the drain for your nail upkeep? Let's look at my situation. For the past year, I've spent $90 a month on my nails. How so? Well, every week I went for my fill-ins, which is $20. So that's $80 a month plus the few bucks I give every week for a tip. That's $1,080 a year!

Now you're probably thinking, I go every week to get my fill-ins, but you go only every 2 weeks. Still, if you're paying about $16-$20 every 2 weeks for fill-ins, that's still $32-$40 a month, which comes out to $384-$480 a year!! That's enough to pay for a utility bill or a car payment!

Anyways, here's the money saving tip from me to you...Do your OWN nails, and here's how to make them look professional...

The last time you went to Walgreens to buy a pack of $5 nails, it was probably back in 1990! LOL! But things have changed, and glue-on "at home" nails have become beautiful and much more high-tech. The trick is to buying fake nails at the drugstore that have a CLEAR base. That means, for instance, if you were to buy french tips, get the nails that are totally clear by the part you glue to your nail, not the ones with the peachy or pinkish color.

The next step is to find brush on glue, NOT the kind that comes with the kit where you dab a drop onto your nail. Get the one you actually have to brush on your nail like nail polish. When you apply the nail, press EXTREMELY tight to get rid of any bubbles that can show through the clear plastic nail. I mean press TIGHT! The tighter you press, the less bubbles/imperfections you'll see. Also make sure you squeeze the nail as close to your cuticles as possible for a more natural look. When you are done, file your nails the way you've studied at the salon. I file mine in a pretty square shape with slightly rounded edges, and I keep them long enough to look feminine but short enough to actually do things with them without looking like I have claws. The key to these drug store nails is to make sure you play with the sizes before you start gluing. Look for the nail in the box that fits best for each nail first. Line them up before you glue them on to make sure your nails match up on each hand, THEN do the gluing. And voila!!

It's amazing how fake drugstore nails have come a long way! My nails don't start coming off for about a week +. The soonest they've come off was a week.

So, you can either throw your money down the drain every week (or every 2 weeks) like I did, our you could go to Walgreens and by some clear french tip nails (or colored nails) and apply them yourself. I pay $2.99 for the nail glue, and I only buy my clear fake french tipped nails when they're on sale. Regular price is $5.99, but I pay $3.19 when they're on sale. I'm cheap, I know, but at least my nails look good and I'm paying less than half the cost. So for less than $10 a month (less than $120 a year), my hands look just as pretty as the other girls and it's not breaking the bank=)
Another plus to doing your own nails is that you don't have to worry about what time the salon opens and closes. I usually do my nails when I'm watching tv after work, and it only takes me about a half hour! I love it! Filing them takes the longest amount of time since it's hard to file the plastic nail, but they come out looking salon-quality!!! Try this at home girls and let me know how it works. I'd love to hear that I helped you all save some money=)

ps. if you're worried about a fake nail falling off, I suggest you buy an extra brush on glue to carry in your purse. However, my nails never just fall off. I press them on soooo tightly that they feel like they're glued for life! When they get weak, you'll know because the nails won't seem as tight on your real nail, and they'll get weak around the edges like acrylic nails do. At that point, redo the nail before it comes off by itself when you least expect it.

Car Related Saving Money Tips

2007-05-26T17:26:00.000-07:00

Let�s face it. With the rising cost of living, we�re all trying to save a buck. Whether we shop at discount stores, eat out less or simply don�t spend as much, there are tons of ways that we can save money. In this article, we will talk about how you can save money on car insurance. No, this is not an article about Geico or any insurance company for that matter. It is an article that specifically addresses ways that you can save money with any company. So, without further adieu, let�s discuss several ways that you can save money on your car insurance.

1. Research to find the best insurance company. First and foremost, you have to be willing to research to find the best deals. The best deals aren�t out there saying, �hey choose me.� Instead, you have to be willing to shop around for the best deal. This means getting on the phone and calling companies that you�re interested in doing business with or conducting price comparisons online. Either way, you have to be willing to put in the necessary effort to receive the golden egg.

2. Buy the right car. Buying the right car can save you a ton of money on your car insurance. This is because some cars (ex. sport cars and luxury cars)are stolen more than others and insurance companies have to charge more money for insurance to cover them. Therefore, if you purchase insurance for a lower profile car you won�t be charged more.

3. Increase your deductible. If you�re like most folks, you have a really low deductible on your car insurance policy. Although this is good for the insurance policy, it is bad for you because that deductible although costing you less upfront, it is costing you big money in the long haul. Therefore, you can save yourself a ton of money if you simply raise that deductible and your premium will be increased. Before you do however, make sure that you can actually afford to pay the new deductible.

4. Protect your car. Another way to save money is to install anti-theft devices and to keep your car in a garage. According to John Bailey, a retired insurance salesman, �Insurance companies truly respect and admire customers who protect their cars from thieves and environmental elements. To show their appreciation, insurance companies reward valuable customers with lower rates and tend to honor their legitimate claims.� Therefore, make sure that you inform your insurance company of any alarm systems or fact that you�ll be keeping your car inside your garage.

5. Drive safely and carefully. This may sound like a no-brainer but many people don�t realize that driving safely is very important. Not only for your general health and well being but for your pocket book. Simply put, insurance companies love safe drivers and reward them with the best rates. They also penalize those that file excessive claims. Therefore do your best to avoid accident claims at all costs.

6. Don�t drive too much. Another way to lower your premiums is to simply not drive your car much. For instance, if you only drive recreationally and not to and from work, you may be entitled to a certain reduction in insurance premiums.

7. Request applicable discounts. Just like there are safe driver discounts, there are also AAA, student discounts, anti-theft device discounts, multi family, and multi policy discounts, etc. You simply have to be willing to request discounts. To do so, contact your insurance company and ask them if you�re entitled.

8. Negotiate to get best deal. Another way to get your insurance reduced is to negotiate. If you have written quotes from another insurance company then take it to your existing insurer and see if they would be wiling to match it. Many times they are willing to �make a deal� in order to avoid you going elsewhere for your insurance needs.

9. Consider moving. Insurance companies base their rates on level of crime in your neighborhood. Therefore it is likely that you may be charged less money if you live in what is considered a �safer neighborhood� than one that is not.

10. Consider changing jobs. Insurance companies consider certain professions riskier than others. For example, taxi drivers pay more insurance than other professionals and so do pizza delivery personnel. One way to save money is to not work in a field insurance companies consider risky.

In conclusion, you can save money on your car insurance. You just have to be diligent in finding best insurance company, buy the right car, increase your deductible, protect your car, drive safely, don�t drive too much, request applicable discounts, negotiate to get best deal, and consider moving and changing jobs. If you do this, you�ll not only receive the best deal on your car insurance but you�ll have peace of mind in knowing that you did what was best for you and your family.

No need to buy wrapping paper w/ Kids either

2007-05-26T17:22:00.001-07:00

Depending on what kind of paper you have around you can have your dc's decorate the paper before you wrap a gift. We've used whaterver we've had around the house including paper bags. MIL loves it

Save Money on Heating Costs

2007-05-25T19:11:00.000-07:00

Reduce Heating Costs With These Money Saving Tips

If you live in a region that is cold in the winter, heating costs take a big bite out of your monthly budget for 25 - 50% of the year. Due to the rapidly escalating costs of home heating oil, propane, and kerosene, you may be paying twice as much to heat your house as you did just a few years ago. You can cut your heating costs significantly by following these money-saving tips.

Do an energy audit of your house, identifying areas where heated air is leaking out. Check around doors, windows, fireplaces, and other areas that may feel drafty. Use caulk, weather stripping, door sweeps, plastic, and other appropriate means to close off these leaks. If your house is poorly insulated, adding additional insulation will pay for itself in reduced heating costs.
Minimize your use of ventilation fans such as bathroom fans and kitchen hood fans in winter.
A bathroom fan can suck all the heated air out of the average house in little more than an hour. Over the course of the winter, ventilation fans can increase your heating costs by a surprising amount.
Don't heat areas of your house you don't use regularly, such as guest rooms. Close heating vents or turn back thermostats in those areas and close the doors for a painless reduction in heating costs.
Turn down the heat and use space heaters to heat the room you spend time in.
Keep your furnace, heat pump, or other heating equipment in top operating condition. Dirty filters reduce the efficiency of your furnace or heat pump. Poorly tuned units are inefficient and use more fuel. An annual maintenance agreement is well worth the money to ensure that your equipment is properly maintained and will last as long as possible.
Don't turn your thermostat up above the desired temperature. It won't heat up any more quickly and will make your furnace work harder. Also, while it makes sense to turn the heat back when you're sleeping or not at home, turning it down too low can actually cost you more because the contents of the house have to be re-heated in addition to the air. 68 to 70 degrees while you're home and awake, and 60 to 65% while you're asleep or not at home are reasonable temperatures.
Consider a programmable thermostat to raise and lower the temperature at pre-set times.
Check the temperature setting on your hot water heater. If you have a dishwasher, your water should be heated to 120%. Otherwise, it can be somewhat lower.
If your water heater is in an unheated space like an unfinished basement, wrap it in an insulation blanket available at hardware stores to prevent heat loss.
Wash clothes in cold water whenever possible.
It's tempting to stand under a hot shower on a cold morning for as long as possible, but cutting your shower time in half can save up to 33% on your hot water heating costs.
In winter, open the blinds and curtains on the sunny side of the house (the south-facing side) when the sun is shining and close them as soon as the sun goes down to retain the solar heat. Close curtains on the shady side of the house (north-facing side). If you don't have curtains, consider installing some. Curtains made from heavy fabric with lots of folds (fullness) can prevent cold air from seeping in and warm air from seeping out, which reduces your heating costs.

Save Money on Bank Fees

2007-05-25T18:33:00.000-07:00

Cut Your Banking Costs by Hundreds of Dollars

You probably don't give much thought to the cost of banking: monthly checking account fees, ATM fees, bounced-check fees, etc., but if you can shave banking expenses, you can save money and put it in your own pocket. Remember: it's easier to find lots of ways to save a little money than it is to earn more income, and lots of little savings add up.

Save Money on Your Checking Account

If you're paying for the use of your own money by paying fees to maintain a checking account, look for a bank with no-fee checking. Many banks offer no-fee checking if you keep a minimum balance in a savings account or maintain a minimum combined balance in your savings and checking accounts.
Get information from several banks and choose the one that best fits your habits. If you always dip below the minimum balance, it does no good to have "free" checking, since you'll incur a fee if your balance goes below the minimum.
Potential Money Savings: $96-120/yr.
Buy your checks through a discounter such as Checks Unlimited (www.checksunlimited.com)1-800-204-2244; Checks in the Mail (www.checksinthemail.com)1-800-733-4443, or CheckWorks (www.checkworks.com)1-800-971-4223. Discounters charge around $6.00 to $8.00 for 200 checks, as opposed to the $20 to $25 your bank charges. Potential Money Savings: $15-38/yr.
Balance your checkbook every month and do not bounce checks. Typical fees for a check written against insufficient funds range from $20 to $35. If more checks clear before you're aware of the problem, you can easily bounce two or three additional checks for a total cost of $100 or more. Potential Money Savings: $100 or more/yr.
If you keep a significant balance in an interest-bearing account, keep it in a bank that uses the average daily balance method for calculating your minimum balance and interest. You're much less likely to be charged a fee if you dip below the minimum balance during the month (as long as your average daily balance for the entire month is not below the minimum), plus you earn interest on all your money. Other methods of calculating interest can cost you hundreds of dollars a year in interest that would have been credited to your account under the average daily balance method. Potential Money Savings: $100-300/yr.

Save Money on ATM Fees

Move your checking account to a bank that has a large ATM network with branches near your home and work. Potential Money Savings: see below.

Use only Automated Teller Machines (ATMs) that don't charge fees. If you withdraw $20 from an ATM and are charged $1.50 by the ATM owner, you have in effect paid a 7 1/2 % surcharge for access to your own money. Your bank may also charge you an out-of-network transaction fee, doubling the actual cost to you. Potential Money Savings: $78-156 or more/yr.

Save Money On Car Expenses

2007-05-25T18:16:00.000-07:00

Save on New Car Purchases and Maintenance

You can save big money on your car expenses - thousands of dollars a year. The more cost-saving measures you adopt, the more money you'll save. Potential savings will vary widely depending on your personal situation.

SAVE MONEY ON NEW CAR PURCHASES

Keep cars longer instead of trading every few years. Not only does the cost of new cars rise each year, but cars depreciate quickly, and when you trade frequently, you lose money on low trade-in values. Buy a good quality car and keep it for five to seven years. Potential Money Savings: $400-1,000/yr.
When buying a new car, consider smaller models. They're often cheaper, and because they're lighter, they usually get better gasoline mileage. In addition, insurance is cheaper. Potential Money Savings: $400-600/yr.
When buying a new car, consider the impact that various options have on fuel economy.
For example, you sacrifice several miles per gallon when using air conditioning on the highway and even more in stop-and-go traffic; automatic transmissions get about five mpg less than manual transmissions; six-cylinder engines get about four to five mpg less than four-cylinder engines. Potential Money Savings: $400/yr or more.
Don't buy credit life or credit disability insurance through your car dealer when purchasing a new car. Some dealers do a hard sell on these coverages, but they are highly overpriced, and if they're folded into your car loan, you not only end up paying 100% to 500% more than you should for the coverage, you also pay interest on it. Stick to regular life and disability insurance through your employer or an individual policy. Potential Money Savings: $300-500.
Be extremely wary of purchasing service contracts or extended warranties on new automobiles through your dealer. Many of them have very limited coverage (in spite of what the salesman may lead you to believe) and they cost much more than policies purchased directly from providers like Warranty Direct (www.warrantydirect.com). Potential Money Savings: $500-1,000.

SAVE MONEY ON CAR MAINTENANCE

Keep your car properly tuned. A poorly tuned car uses between 25% and 33% more gasoline each year. It's cheaper to pay the cost of a tune-up. Potential Money Savings: $150-250/yr.
Change the oil and oil filter in your car every 3,000 miles, regardless of how often your owner's manual recommends. More frequent oil changes are the single most important factor in extending the life of your engine, and will more than pay for themselves in savings on repairs and engine wear. Potential Money Savings: $500 - $3,000.
Check your car's air filter monthly. A dirty filter shortens the engine's life and reduces gasoline mileage up to 10%. You can clean the filter by removing it and blowing it with an air hose, or you can replace it. Potential Money Savings: $130/yr or more.
Use steel-belted radial tires. This can increase your gasoline mileage up to 10% per year. Potential Money Savings: $130/yr or more.
Unless your car is knocking and pinging, don't use a higher octane gas than your owner's manual recommends. For most cars, premium gasoline offers no benefit. Unless your car has a high-performance engine and your manufacturer recommends a high-octane gas, use the less expensive gas. Premium gas costs 10% to 15% higher than regular. Potential Money Savings: $200-400/yr.
Check your tire pressure regularly. You can lose up to 6% in gasoline mileage for every pound of under-inflation. Potential Money Savings: $140-400/yr.
Add thousands of miles to the life of your tires by having them balanced once a year. In addition to destroying the tread, improperly balanced tires can wear out your shock absorbers and damage your suspension system, leading to more expense. Potential Money Savings: $175-250/yr.
Check fluid levels regularly. Low battery water shortens your battery's life. Also check coolant, automatic transmission fluid, brake and clutch fluids. Potential Money Savings: $50-300/yr.

Cut Your Gas, Insurance, and Other Car Expenses

See Part One of this article for ways to save money on new car purchases and maintenance.

SAVE MONEY ON GAS

Pump your own gas. Self serve gas is usually 5% to 10% cheaper than full service. Potential Money Savings: $65-130/yr.
Don't "top off the tank" when pumping gas. Some of the gas may end up overflowing when it expands in the sun or if you park on a hill. Potential Money Savings: $20-53/yr.

SAVE MONEY ON INSURANCE

Ask your insurance agent how much money you can save by raising the deductible on your auto collision insurance. Often, raising the deductible from $200 to $500 can save you 10% to 30%. If you have a good driving record, you could come out ahead. Potential Money Savings: $50-225/yr.
Make sure you notify your insurance company of all the safety features that qualify you for discounts on auto or homeowner's insurance, such as automatic seat belts or air bags in your car, smoke detectors in your home, etc.
Non-smokers or non-drinkers can often get additional discounts. Potential Money Savings: $50-100/yr.
If you drive an older car, consider dropping collision and comprehensive coverage (don't drop liability coverage). Collision coverage is required if you have a car loan, but for older cars that you own free and clear, weigh the car's book value (what the insurance company would pay you if the car was totaled) against your collision premiums. If your car is over five years old or is worth less than $1000, keeping collision and comprehensive coverage may not be worth what you're paying in insurance premiums. Potential Money Savings: $100-300/yr.
Before buying a new car, ask your insurance agent whether the model you are considering will require a surcharge due to higher theft, damage or repair costs. Potential Money Savings: $50-200/yr.
Shop around for insurance. If you're getting good service from your company and are happy with the rates, you may want to stay with them, especially if you have had accidents or tickets. But if your record is good, shop around to see how much you can save, then decide if the savings are worth the switch. Potential Money Savings: $50-200/yr.
Consider combining your auto and homeowner's insurance under one policy. Many insurers give a discount for multiple policies. Potential Money Savings: $50-200/yr.
If you have a high school or college student under 25-years old in your household, ask about the good student discount for auto insurance. If your student qualifies, you could save 25%. Potential Money Savings: $125/yr.
Avoid tickets for speeding or moving violations. Many insurance companies give a discount of up to 20% if you have not had an accident or ticket for three years or more. Potential Money Savings: $100/yr or more.

SAVE MONEY DRIVING

Car pool to work. By sharing the driving with just one other person, you could save an average of $20/month or $200/year in gasoline alone, if your commute is 20 miles round-trip each day. Sharing the driving with two others increases your savings even more. Savings vary depending on the length of your commute. In addition to savings on gasoline, you'll save maintenance costs and wear and tear on your car. Potential Money Savings: $400-700/yr.
Another benefit to car pooling is that it reduces the annual mileage on your car. Since this reduces the risk of accident, your insurance company charges you less for your coverage. Potential Money Savings: $25-50/yr.
Wasteful driving habits can double your fuel consumption. Develop gas-saving habits, such as: (1) always accelerate gently; (2) watch traffic ahead of you so you can anticipate slow-downs and avoid stops; (3)coast up to traffic jams by lifting your foot off the gas pedal instead of approaching at full speed and slamming on the brakes. It takes 20% more gas to accelerate to normal speed from a full stop than it does from four or five miles per hour; (4) don't drive too fast or too slow. It takes 20% to 30% more gas to drive at 70 mph than 50 mph; (5) maintain a steady speed on the highway. Avoid getting stuck behind slow cars where you have to slow down to their pace and then speed up to pass. Potential Money Savings: $390/yr.
Don't warm your car up by letting it idle. The engine warms up faster when driving than it does when idling, and idling wastes about a quart of gas every 15 minutes. Potential Money Savings: $90/yr.
Save fuel by combining errands into one trip and avoid backtracking whenever possible. Potential Money Savings: $25-100/yr.

Save Money on Your Credit Cards

2007-05-25T18:11:00.000-07:00

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Cut Your Credit Card Costs

You can easily save thousands of dollars a year with very little effort by following even a few of the cost-saving measures in the "Save Money" series. The more cost-saving measures you adopt, the more money you'll save. See the links on the right for more ways to save money.

If you're paying more than 12% interest on your VISA or Mastercard, you're paying too much. With the prime interest rate in the single digits, lenders that charge 13% to 21% interest on credit card balances are gouging you. With good credit, you should be able to find a credit card rate (as of summer of 2004) for between 9% and 12%. For a list of the lowest credit card rates, visit bankrate.com. Potential Money Savings: $450-1000/yr.
If you can obtain a lower interest credit card, you can usually use cash advances to pay off the balance on your other credit cards and transfer this debt to the lower rate card.
Some cards charge a higher fee for transferred balances, so be sure to read the small print before applying, and make sure you can pay it off or transfer your balance again to another card before the introductory period rate expires. Potential Money Savings: $200-500/yr. (more if you have a lot of credit card debt at high interest rates).
Consider using part of your savings to pay off consumer debt, if you can do so without using all of your available cash. With banks paying less than 1% on passbook savings, and credit card debt carrying 10% to 21% interest charges, you could come out way ahead. Be careful to leave yourself enough savings or borrowing power to fall back on in case of an emergency. Potential Money Savings: $200-500/yr.
If you don't have enough savings to pay off your consumer debt, consider a home equity loan. Interest rates on home equity loans are much lower than most credit cards, so you win in two ways: (1) you slash your interest costs, say from 16% on the credit card to 6 or 7% on the home equity loan, and (2) you can deduct the home equity loan interest from your taxable income. Be cautious, though. Remember you're putting your home at risk. Potential Money Savings: $1,000 - $2000 yr.
Look for no fee credit cards (be sure to consider all the other factors such as grace period, interest rate, etc., as well). Even if you are charged an annual fee, you can may be able to get the fee waived by calling your bank and asking them to remove it. Potential Money Savings: $25-50/yr.
Whenever possible, avoid finance charges on credit cards, especially cards with high interest rates. If you pay down your credit card balance by just $500 you can save $100 a year in interest charges. Potential Money Savings: $100-1,000/yr.
If you have a balance on more than one credit card, use this money-saving strategy, which I call the Credit Crunch: Pay the most you can afford each month on the card with the highest interest rate, and make the minimum payment on the others. Once the card with the highest interest rate is paid off, begin paying as much as possible each month on the card with the next highest interest rate, and so on. Potential Money Savings: varies

Getting a good deal on a car rental

2007-05-24T16:37:00.000-07:00

It is a little known fact that car rental companies often offer extremely low rates to customers who simply walk in without a reservation.

Also, if a car rental company has too many SUVs or too many convertibles etc. they will deeply discount the daily rental rates on those specific car-types.

Thirdly, rental companies secretly call eachother daily to "rate-shop" what the competition is offering. The smart companies then set their rates slightly lower to ensure that customers calling from the airport terminal will chose to rent from them instead of the competition.

The Takeaway:
Book your car as early in advance as possible, then when you get to the car rental counter ask what the rates are BEFORE you tell 'em you have a reservation. If they quote you a lower rate, they must honor it. If they quote you a higher rate...just stick with the quoted price on your reservation.

Save money on carpet cleaning

2007-05-24T16:33:00.000-07:00

A home-made carpet cleaning solution that will save you money with household ingredients (great for baby or pet messes):

1 tablespoon of laundry detergent (anyone will do)
2 tablespoons of vinegar
1 quart water.

Spray on stain.
Let sit (longer for tougher stains)
dab with a moist cloth.

Re: Save money on carpet cleaning
I recently had to get my carpets cleaned after looking after my sister's dog for a week. I had purchased many products from the supermarket to try remove the stains where the dog had some accidents. Nothing seemed to work, the products themeselves seemed to leave more stains and so gradually there was a big ring appearing in the carpet around where the original stain was.

When the carpet cleaning man was cleaning the carpet, he was amazed at how much soap foam was coming off the carpet from where I had cleaned. He said this was what was causing the bad staining (dry soap and detergent), he advised that in future I should only use water and that on wool carpets thats really all that should be needed.

Save money today

2007-05-24T03:03:00.000-07:00

Millions of pounds are wasted each year by the British public, from food rotting in the fridge to paying too much for gas and electricity. Use the following tips to help you save hundreds, if not thousands, of pounds a year.

On food

Buy fresh produce from markets not supermarkets, they're almost always cheaper.

If you do shop at the supermarket, make a list and stick to it, unless you see food that's massively reduced.

Buy cheaper cuts of meat and tenderise them by cooking them more slowly, in casseroles, for example. They're just as nutritious.

Make your own sandwiches. The pre-packed sandwich industry is worth £3.3 billion a year! At £2 a sandwich, someone who buys sandwiches for work every day spends more than £40 a month, or almost £500 a year! Home-made sandwiches freeze brilliantly too

Don't waste leftover food. Be inventive - you can make very tasty and nourishing meals with it

Batch cook. Cooking large amounts of food and freezing it is much more cost effective both in terms of ingredients and the energy used to cook the food

Don't buy convenience food. It's usually high in salt, sugar and fat, but it's also very expensive and profitable for the supermarkets that sell it

At home

Turn down the thermostat on your central heating by just one degree. This could save you almost ten per cent on your heating bill. And, according to the Environment Agency, over the year, this will save about 240kg of carbon dioxide being released into the atmosphere, equivalent to the amount absorbed by about 80 trees.

Check your gas and electricity supplier to see if they're the cheapest. An average house could save more than £100 just by switching supplier.

Don't heat rooms you don't use, or heat them gently.

Don't fill the kettle full every time. It takes a kilowatt to heat a litre of water by 1°C (1.8°F). Just put the amount of water you need in your kettle.

Ensure that you don't have leaky windows and doors.

Fit loft insulation - some councils will offer grants in certain circumstances.

Don't leave electrical equipment, such as TVs and stereos, on standby. It wastes electricity.

Turn off the lights when you leave the room.

Fit energy-saving light bulbs, they're kind to the environment and they save you money in the long run.

Shower don't bath. It uses a lot less water and therefore saves on heating.

Hanging out the washing is free, and saves you using the energy-thirsty tumble dryer.

Buy things from charity shops or even shops at the council tip. They cost a fraction of the 'new' price and are often in very good condition. Toddlers soon grow out of their toys, so buying them ones from charity shops is a cheap way to give them an endless supply.

Going out

Do you have to take the car? Could you walk?

Can you buy it locally? Big shops may be cheaper but they might not be once you've added on petrol, bus and train fares. You'll also be supporting your local community.

Happy hour! Many pubs, restaurants and cinemas have discounts for less popular times of the day. Taking advantage of this can save you up to 50 per cent of the cost.

Off-peak travel. If you're planning to visit friends by train or bus, check out the savings made by going off-peak. For example, a peak return from Winchester to London Waterloo by train costs more than £35. An off-peak travel card costs just over £22 and if you have a travel card (which costs a one-off £20 a year) it only costs £15.

Go 'out' to friends. You can have a great night out by taking a bottle of wine and a takeaway to a friend's house, or have them come to you. You'll save a fortune compared with going to a restaurant.

Car share. If you commute to work, or do a school run, team up with neighbours and share the journey.

Join a babysitting circle. If you want to leave the children at home, you can save money by joining a group of babysitters. The babysitting is therefore free, you just return the favour. This can save you about £20 for a long evening.

Carry out research on the internet for the best bargains, before you go out to buy something. It'll save you the hassle of walking from shop to shop, saving time and petrol, and you'll be more likely to find the cheapest deal.

On finances

Consolidate any debts you have. Don't pay ludicrous credit card interest rates. Talk to your bank about getting a loan to pay them off, or switch to a card that offers cheap rates for transferred balances. This can save you hundreds of pounds depending on the size of your debt.

Pay all your bills by direct debit. This means they're paid on time, you get used to not having the money and you can budget properly. Often there are discounts for doing so too.

Ensure your savings are in the best sort of account. If you don't need to touch it, put it in a higher interest account, although this does mean restrictions on getting your cash.

If you can afford it, make use of your ISA allowances. You can save up to £3,000 in cash in any one tax year, and the interest is tax-free. You can also save in shares and life cover with an ISA. Get advice from a financial adviser.

Make sure you're getting all the allowances that you're entitled to, including all the child credits if you have children. The Citizens Advice Bureau can help you with this.

Save loose change. You'd be amazed how quickly coppers and silver in a piggy bank turn into notes.

Six steps to help you save money

2007-05-24T02:57:00.000-07:00

You have a nice salary, but you still feel short of money. At the end of each month, you often ask yourselves, "Where has all my money gone"? To help you better manage your salary, here comes some money saving tips. Following them your daily expense will be cut off easily, but still keep the quality of your life.

First, you need to set ambitious goals to encourage you to save money. For example, you plan to have a formal dress in one year, to own a car in two years' time or to buy an apartment in five years.

Second, form money saving habits while stay away from those that waste money. Learn to keep a diary of how much you spend and what it's for. Think twice before using money on expensive skin care products. The best ways to keep your skin in good condition is sufficient sleep.

Third, economize your daily expense. Change electric wares into energy efficient ones and leave no more than one light open when you leave home. Buy vegetables from a market not a supermarket where vegetables are less expensive and more fresh. When going to a supermarket, take a notebook with you. Write down what you wanna buy to avoid buying unnecessary stuffs. For things like shampoo, soap or washing powder, buy the family pack.

For girls, who always spend money on clothes, there are some rules helping cut off the expense. Keep an eye on discounts information, you're likely to buy good summer dress in winter in a reasonable price. Shopping malls issue membership cards periodically. Go and get one if it's free, it may give you special discounts.

Fifth, economize your social life. Package the leftovers for next day when you have dinner in a restaurant. When it's your turn to offer a meal, invite your friends to your home, cook the dinner yourself. If you are to attend a wedding ceremony and an expensive present is needed, ask several friends to go together to share a present. When separate from your boyfriend, send the gifts he sent you to your friends instead of throwing them away

While reducing expenditures, you need broaden your way earning money. Find yourself a part-time job if you are energetic enough, which gives you more working experience. Give birth to your money. If you are not good at making investments, talk to a financial consultant and entrust your savings with him.

Save Money On Medications

2007-05-23T06:48:00.001-07:00

If you take prescription medications, check to see if you can sign up for a mail order service. Usually receiving medications in the mail can save you a decent amount of money. Also check with your doctor to see if you are able to take generic versions of your medications. The generic drugs are much much cheaper and usually have the same chemical formula.

5 Tips for Managing Student Loan Debt

2007-05-23T06:43:00.000-07:00

1. Take Stock of Your Loans
To best manage your student loan debt you should know:
� How much you owe in student loans
� What your student loan interest rates are
� What you monthly student loan payments will be
You can access information about your Federal student loans on the National Student Loan Data System (NSLDS), using your FAFSA PIN.

2. Pay Attention to Your Loans While in School
It is easy for students to forget about student loan debt because they aren�t required to make payments while in school. However, as college tuition and the average student loan debt increases, it is becoming more important that students start managing their student loan debt while still in school. Parents are also given the option to defer payments until their children graduate, but this can have a ballooning effect on the loans. Paying down student loans or student loan interest during school is definitely a better financial plan for both students and parents who can afford it.

3. Pay off Your High-Interest Loans First
Some education loans have higher interest rates than others. Typically, Federal student loans such as Stafford Loans or PLUS loans have lower interest rates than private loans. Although a large Federal student loan balance may be more daunting, a few thousand dollars in private loan debt may carry a much higher interest rate. When you have extra money, put it towards your higher interest rate loans and you�ll save more money in the long run.

4. Utilize All Borrower Benefits Offered By Your Lender
Borrower benefits are money-saving incentives that lenders offer to students and parents on their education loans. Lenders use these benefits to reward borrowers who make consistent on-time payments, enroll in an automatic debit program, or utilize tools created by the lender that better manage monthly student loan payments. These benefits can come in the form of interest rate reductions, where a discount is taken off the interest rate. They can also be offered as principal reductions, where the borrower receives a loan credit or money off the total balance of their loan. Taking advantage of these benefits can help you save money and pay off your student loans faster.

5. Consider Student Loan Consolidation or �Refinancing�
Student loan consolidation has recently grown in popularity and is becoming a common method for students and parents to manage their education debt. Whether you have just one loan or 20 loans, you can use student loan consolidation as a tool to manage education debt and possibly save thousands of dollars in the process. Student loan consolidation can:
� Combine your loans into one easy payment (if you have more than one)
� Reduce your monthly payments
� Save you money with borrower benefits such as discounts off your interest rate.

Save Money on Your Home Expenses

2007-05-22T03:05:00.000-07:00

Cut Mortgage, Utilities, and Other Home-Related Costs

You can easily save thousands of dollars a year with very little effort by following even a few of the cost-saving measures in the "Save Money" series. The more money-saving measures you adopt, the more money you'll save. Potential savings will vary, depending on your personal situation. See the links to the right for more money-saving ideas.

Save Money On Your Mortgage

Consider refinancing your mortgage. For every $10,000 of your mortgage loan, 1/2 % difference in the interest rate saves you over $40/year or $3.40/month in interest expense. A $100,000 loan at 9 1/2% refinanced at 7 1/2% saves $142/month or $1,704/year, for a total of $50,991 over the life of a 30-year mortgage. Potential Money Savings: $1,700/yr.
For even more dramatic long-term savings, consider a 15-year mortgage rather than a 30-year mortgage.
A $100,000 mortgage at 9 1/2% over 15 years saves $114,747 over the life of the loan compared to a 30-year mortgage at the same interest rate. At 7 1/2%, the savings between a 30-year and 15-year mortgage of $100,000 would be $84,854. A 9% loan of $100,000, refinanced for 15 years at 7 1/2% would add $86/month to your payment but would save you a whopping $135,845 over the life of the loan. Potential Money Savings: $84,000-136,000
You can achieve similar results by paying an extra principal payment on your 30-year loan each month. (In the early years of a loan, the principal portion of your payment is very small. On a 30-year $100,000 loan at 7 1/2%, the monthly principal payment in the first several years is approximately $75 to $85/month).Potential Money Savings: $85,000-136,000.
Still another way to achieve these results is to pay one half of your monthly mortgage every two weeks. Potential Money Savings: $85,000-136,000.

Save Money On Utilities - Electricity

Install the new type of fluorescent bulbs in lights you leave on for long periods. They provide four times as much light and last ten times longer than incandescent bulbs. Potential Money Savings: $10-$50/yr.
Lower the temperature on your hot water heater to between 110 and 120 degrees. It's not necessary to have it any hotter and wastes energy. Potential Money Savings: $20-40/yr.
Find out if your utility company offers free energy audits, where they inspect your home for energy effectiveness and recommend inexpensive ways to cut energy costs, such as insulating hot water heaters, weather-stripping, etc. Just insulating your hot water heater could save you $25 a year. Potential Money Savings: $50/yr.
Set thermostats no higher than 68 degrees in winter and no lower than 78 degrees in summer. Turn your heat down even further at night or when you're not home (unless you have a heat pump, which operates more efficiently at one consistent setting). Each extra degree in winter can increase heating costs by 3%. In summer, each degree can raise cooling costs by 6%. Potential Money Savings: $325 to $500/yr.
Cut back on the use of your clothes dryer. Not only is it a big energy drain, it can also suck heated air out of your house very quickly in winter. Hang clothes on a clothes rack to dry and use the dryer for towels and other heavy items. Potential Money Savings: $25-50/yr.
Use your microwave instead of your oven whenever possible and save up to 50% in energy costs for cooking. Potential Savings: $50/yr.

Cut Costs on Miscellaneous Home-Related Expenses

Save Money On Utilities - Water

Always do full loads of laundry. A typical full load uses about 21 gallons of water. A small load uses 14 gallons. Several small loads use considerably more water than one or two large loads. Over the course of a year, this adds up. Potential Money Savings: $25-$125/yr.
Run your dishwasher only when you have a full load. Let the dishes air-dry instead of using the heat cycle. An average dishwasher costs $60 to $100 per year to run. Potential Money Savings: $35-55/yr.
Fix running toilets or leaking faucets promptly. A continuously running toilet can use more than 8,000 gallons of water a year. Potential Money Savings: $25-125/yr.
Install flow restricting shower heads. A family of four can save 8,000 to 12,000 gallons of water a year.
You not only save on the cost of the water, but also the cost of heating it. Potential Money Savings: $100-$300/yr.$
Add fabric softener to your laundry at the appropriate point in the cycle instead of adding it at the end and running another rinse cycle, which can use up to 10 extra gallons of water. Figure out how much time it takes your washer to reach the rinse cycle, and set a timer so you can add softener at the right time. Potential Savings: $25-100/yr.
Use warm or cold water for washing clothes, and always rinse in cold water. Potential Savings: $50/yr.

Save Money On Utilities - Other

Stick to basic phone service. Extra services like call waiting and call forwarding can almost double your costs for phone services. Potential Savings: $168/yr.

If you can live without cable television, you can save between $300 and $600 per year. If you can't live without it, get basic service only. You can rent a lot of movies for the extra $150 to $600 per year you pay for movie channels like HBO, Showtime, etc. Potential Money Savings: $144-700/yr.

Plant perennial flowers instead of annuals. You incur a one time cost and enjoy the flowers for years, with little additional effort or money. Annuals, on the other hand, require an outlay of cash and effort every year. Potential Money Savings: $100-$300/yr.

If you live in a cold region of the country, heating costs are a major expense. Tips on shaving some significant savings off your heating bill are covered in Save Money on Heating Costs.

How to Save Money on Gas

2007-05-21T20:51:00.000-07:00

Gas prices keep going up, and our wallets keep getting thinner. There are many ways you can save money on gas, at the gas staion, and also keep healthy as well.

Steps

Don't drive. Don't drive a car when you don't have to. Carpool, walk, take the bike, or take a bus. These will not only save gas, but also will help save our environment and may be better for your health. Do you really need to drive to the store that is only a couple of blocks down the street?
Get a credit card. Some right credit cards offer gas savings when you use the card for purchases. This works in much the same way that some credit card companies allow you to earn frequent flyer miles when you use their card for purchases. But watch for interest rate charges. However, some stations now charge a higher rate for using a credit card.
Get a better air filter. There are more efficient brands of air filters available such as the K&N air filter. This is a washable filter (so you don't have to throw it away) and some drivers notice improved gas mileage and increased horse power. The filter costs a little more but will last for the life of your car and will pay for itself in less than a year in most vehicles in fuel and air filter savings. Basically about every 30,000 miles you need to wash off the filter and re-oil it. Also by avoiding having to keep buying and replacing air filters this can help the environment too.
Get a membership card. Some gas stations offer membership benefits. There are also department and grocery stores that give discounts at the fuel pump when you use their store membership cards.
Give your car a tune up. While properly maintaining your car won't actually save you money at the pump, it will save you gas. Using less gas saves you money. Have the oil changed, and have a certified mechanic give your engine a look over.
Check the web for deals. Web sites let you find the best deals in your area. Check out the external links below to start.
Buy a Diesel. Diesel cars can often get better mileage than comparable hybrids and do not have batteries that need replacing. Getting a Diesel car also allows for use of Biodiesel or even Waste Vegetable Oil (WVO/SVO) fuel.
Buy a hybrid car. Not only do hybrid cars give you immediate savings at the pump, the U.S. government and your local state offer tax breaks for people who use gas-saving cars. Federal deductions for using gas-saving cars can be as high as $2,000.00, but check before buying to see if they're still in effect. If you can't afford the growing number of hybrid cars out there, consider getting a regular car with good MPG (miles per gallon), like the Honda Fit. In general, the smaller the car, the better the mileage.
Move or Work Closer to Home While you're considering spending all that money on a new hybrid or diesel vehicle to 'save money', you could move closer to your job (or public transportation to your job), or get a job closer to your home. Then you will be able to walk or ride a bike on nice days, and spend a lot less time in the car when the weather isn't so nice. Maybe even get rid of one family car. If you walk or ride almost all the time, it doesn't matter what sort of mileage your current car gets while it collects dust in the driveway.
Use the lowest recommended octane for your car. The lower octane gas is cheaper. Most modern cars are engineered to run most efficiently on lower octane fuel, and often forbid you to use higher octane fuel. Check your owner's manual to be sure, as not all car engines should use lowest octane gas.
Mix octanes. Using a higher octane has no effect on fuel efficiency and doesn't really gain you anything and costs more. In some areas, the lower octane may be too low for your car and the mid-grade or higher octane may be more than what you need. To avoid overpaying and still get the correct octane for your car you can mix the gas. For example, if your car takes 87 octane and the pumps have 85 octane and 89 octane, then when filling your car, fill half the tank with 85 octane and the other half with 89 octane and this will give you an equivalent of 87 octane plus it will save you money because the lower octane gas costs less. However, if you do not have a way of thoroughly mixing the fuel as it is entering your tank, your engine may receive "bursts" of lower octane fuel, causing problems.
Avoid idling. While idling, your car gets exactly 0 miles per gallon. Although it is said that starting the car uses a lot of gas, it is still very little compared to idling for more than a few seconds. Idling to warm up is particularly bad, as the engine needs extra fuel to warm up. After start up, allow your car to idle 15-30 seconds, then drive conservatively until it reaches normal operating temperature. Park your car and go into the restaurant rather than idling in the drive-through. Idling with the air conditioning on also uses extra fuel. Warning: stopping and starting the engine frequently will cause extra wear. Don't stop the engine if you are going to idle for less than a minute. Note: In very cold environments, it is recommended to allow the vehicle to idle and warm up, rather than just start it and take off. You might save gas, but your engine oil won't do its job until it's fully liquid, so you'll spend more money on overhauls.
Combine trips. If you can do several short trips in one longer trip, you will save fuel and time. Make lists to avoid having to go back. Call ahead to avoid wasted trips.
Walk between stops. Once you get into town, some of your stops may be near each other. Park between some or all of them and walk.
Plan your trips in advance. This can prevent wasting fuel and wasting time. Plan to use alternative routes. Often back roads can prevent you from stopping at traffic lights and more importantly sitting in traffic jams.
Buy a GPS system. Global Positioning Systems help you navigate to find the fastest and shortest distance to your destination. A good GPS can save you time and fuel. Also the cost of GPS systems has really come down and you can get a good GPS system for around $350. Also, there are some creative ways you can use GPS systems to save money on gas. For example, you could use a GPS to calculate how far away you are from the next state and if you know fuel tax is less in the next state, just put enough fuel in to get you to the next state and fill up with gas where it is cheaper.
Check the tire air pressures weekly. Buy an inexpensive air pump and an accurate tire gauge (not a pencil gauge as they are not accurate). Keep all tires inflated to the pressure as recommended for your car. Go by the sticker on the door frame or fuel filler flap or in the manual and not the tire wall. Don't be afraid to experiment with higher tire pressure, as long as you don't exceed the rating marked on the tire. Generally speaking, a slightly higher pressure will improve fuel mileage and handling, but too high will degrade traction and wear the tires rapidly.
Drive at a consistent speed Avoid accelerating fast or braking suddenly. Use cruise control when you can.
Maintain a safe following distance Don't stick to the bumper of the car directly in front of you. You will brake more and accelerate more to keep that unnecessary and dangerous narrow gap. This also gives you a lot more room to play with when you are timing traffic signals. Likewise, ignore tailgaters. They will tailgate you whether you go the speed limit, or 100MPH over the speed limit. Allow them pass when it's convenient.
Slow down. Air resistance goes up as the square of velocity. The power consumed to overcome that air resistance goes up as the cube of the velocity. Rolling resistance is the dominant force below about 40 mph. Above that, every mph costs you mileage. Go as slow as traffic and your schedule will allow. Drive under 60-65 since air grows exponentially denser, in the aerodynamic sense, the faster we drive. To be precise, the most efficient speed is your car's minimum speed in it's highest gear, since this provides the best "speed per RPM" ratio.
Clean out any unnecessary items in your car. If you have heavy objects in your car that you don't need, remove them. If your car is lighter, it will use less fuel to get where you're going.
Remove unneeded racks. If you have a bicycle or ski rack, remove it when you're not using it. It causes drag and lowers mileage.
Don't fill until the last quarter tank. If you do this, it can extend your gas because you are hauling a lighter load as the tank nears empty. This also allows you to buy gas on low-cost days. However, in cold weather, you may not want to do this. Also, running a car with less than a quarter tank of fuel can shorten the fuel pump life, and letting your tank empty completely can cause fuel pump and filter problems. And you never know when you might be in an emergency and need some gasoline in your car!
Fill the tank full. If you need to fill up, fill up all the way. The more money you try to save by adding $10 today and then $20 tomorrow will be wasted since each time you will have to travel to the station and wait for a pump. Instead, do it all at once to save time and money.
Avoid buying gas with ethanol, if possible. The lower energy content of the fuel will almost always lower mileage. Other additives may do the same, or may increase mileage depending upon your vehicle. Experiment to find out. Also the minimal price difference is often offset by a lower price due to lower fuel taxes or subsidies. Consider using ethanol because it is a lot better for the environment. Note, however, that turbocharged cars often get better mileage with ethanol blends. This is because the higher (over 100!) octane of ethanol permits more boost, which means more efficient fuel usage.
Avoid having to stop. If approaching a red light, see if you can slow down enough to avoid having to actually stop (because you reach the light after it is green). Speeding up from 5 or 10 miles per hour will be easier on the gas than starting from full stop.
Anticipate the stop signs and lights. Look far ahead; get to know your usual routes. You can let up on the gas earlier. Coasting to a stop will save the gasoline you would otherwise use maintaining your speed longer. If it just gets you to the end of a line of cars at a red light or a stop sign a few seconds later, it won't add any time to your trip. Ditto for coasting to lose speed before a highway off-ramp: if it means you catch up with that truck halfway around the curve instead of at the beginning, you haven't lost any time. (Do not coast to slow down until you're in the exit deceleration lane, unless you have checked your mirror to make sure you won't interfere with non-exiting traffic in the right-hand travel lane.) See: How to Predict Traffic Signals
Take off slowly from a full stop. This is one adjustment that will have dramatic effects on your gas mileage; don't tear off from a stoplight! If you move out slowly, it will help save you money at the pump. Also, if you are driving a stick shift, note that 50% throttle at 1200 rpm's uses less gas than 10% throttle at 2500 rpm's. As long as the engine is not lugging or pinging, shift as soon as possible and use plenty of throttle. The engine is more efficient when it does not have to pump air past a closed throttle plate. Warning: this advice is only true for fuel-injected cars or those with constant velocity carburetors.
Park in the first spot you find. If you wander all over the parking lot looking for that really close parking space, you'll use more gas. Don't be afraid to walk a ways if it comes to that - the walk will do you good!
Stay well away from store fronts Even if there is a space open there, avoid it. If possible, avoid parking lot lanes that bring you near the stores. You will spend significantly less time getting in, and less time blocked in because of pedestrians and other vehicles. More spaces to choose from, and fewer keys and loose carts further away from the doors, too.
Walk into the restaurant Don't use a drive-through, waiting in line, trapped, in your car, idling. Just walk in.
Use A/C only while slowing. This is sometimes enough to keep your vehicle at a reasonable temperature without using fuel and going easier on the brakes. You can also use the A/C to cool the car and then switch to the fan only. (Turning on the A/C at low rpm's may save the compressor from a "jolt" and additional wear.)
Shift into neutral if you are not comfortable with downshifting. Standard transmission vehicles may save gas by shifting into neutral when going down hills steep enough to maintain speed (although engine braking is safer on steeper declines). Do not do this in a Hybrid car, they use this "regenerative engine braking" to generate electricity and charge the batteries. NOTE: This strategy will result in more wear and tear on your brakes. Neither of these strategies is recommended for normal automatic cars. Also, if you own a car with fuel injection, it is more efficient to keep the car in a high gear while going down hills. Simply take your foot off the gas.
Park in the shade. Gasoline actually evaporates right out of your tank, and it does so faster when you park directly in the sun - winter or summer. Parking in the shade also keeps it cooler inside, and you will need less A/C to cool off when you get back in. If there is no shade available, park so that your gas tank (the actual tank under the car, not the valve to fill it) is facing away from the direct sun.
Drive a small motorcycle or scooter instead of a car. They are cheaper and often get 70 MPG or better. Riding gear is available for most weather conditions. A good example is the Kawasaki EX250, which costs about $3,000, gets 60-70 MPG at highway speeds, and can go 0-60 MPH in under 6 seconds!
Use a synthetic oil instead of 10W30 and 10W40. This will cause your engine to run better and give you better mileage..

Tips

Gas prices are statistically the cheapest on Wednesdays, but this is only statistically true over a large number of days. It won't be true every week.
Getting a fill-up three days before a holiday will help you save on the price bump.
At every oil change, check your air filter. Clogged air filters cause engines to work overtime which requires more fuel. Reusable air filters are not recommended, as they can destroy expensive Mass Airflow Sensors if they are over-oiled. A quality paper filter does a better job of filtering.
Use a fuel injector cleaner or complete fuel system treatment occasionally. Not only will you see a boost in gas mileage, but in your car's overall performance. Fouled injectors vaporize fuel poorly, affecting how completely the fuel is burned.
Most car modifications do not improve mileage. Extra wings add drag. Power improvements often hurt mileage. However, if your car is turbocharged, chiptuning may result in a mileage boost. The mileage boost will be canceled out if you drive more aggressively due to power improvements.
So-called gas saving devices don't work. Use these wikiHow tips and save yourself the cost of the snake oil.
Many of these tips change slightly if your engine is turbocharged or diesel. For instance, diesel engines use almost no fuel while idling. Diesel trucks will often be left idling all night to provide heat or power for the trucker inside the cab, at the cost of relatively little fuel.
Wholesale unleaded is now a traded commodity. Watch the futures price as it will forecast price at the pump, which will be about equal to the wholesale price plus taxes plus about a nickel per gallon for the station.
Keep meticulous records of what you spend and how many miles you drive so you can quickly spot changes in vehicle performance. It will also help focus you on the goal of saving.
Every MPH faster yields you less advantage than the last one. Going 10MPH is a big difference over 5MPH, but there is very little difference between 55MPH and 60MPH, unless you are on a very long trip. Many people mindlessly speed wherever they go, and gain absolutely nothing but a heftier fuel bill. Assuming everything goes perfectly (and when does it?) going 5MPH, even 15MPH faster on a highway for a short trip will yield nothing but aggravation as you keep catching up to slower traffic.
Slow down a little below the speed limit, and the highway can seem like it is wide open.
Often the right-most lanes keep moving more than the left-most in areas prone to traffic-jams. Vehicles continue to exit, which keeps leaving 'gaps' to fill in.
If you weren't already about to buy a car, don't buy a brand new car to 'save money' on fuel, especially if you own your current car outright and there's nothing especially wrong with it. It's hard to burn a new car payment (and additional registration taxes and insurance) worth of fuel savings. A new car loses thousands of dollars of its value as soon as you drive it past the dealer's curb, so consider how many miles you'll need to save in order to save that value in fuel.
Think especially hard about the 'savings' if you're exchanging a vehicle that has other kinds of utility that you often use (more passenger positions, more cargo, towing, hauling yard debris, etc.) for a small car that offers economy, but only 'basic transportation' and little cargo space. You might find yourself trading in the little car and buying something similar to what you already have now.
If you frequently need a truck, do you need a shiny, new one for your every day commute? Could you live with a 'junker' truck that you use infrequently for those messy jobs and errands (and maintain yourself through a policy of 'retarded decay'), while you drive a smaller, more efficient car for daily use?
A manual transmission saves an average $1000 on the cost of a new vehicle, and eliminates routine transmission maintenance that an automatic transmission requires (and most people never do this maintenance once the warranty is up - so a used car with an automatic is a risky purchase). In most cases, an automatic transmission gets significantly worse mileage overall than a manual transmission.
Neutral is also a 'gear' on a manual transmission, which you use constantly anyway. Learn how to coast between traffic lights, applying power only as needed to keep the car rolling (more or less) with traffic. Learn to judge terrain and use neutral to its full potential to keep the car moving 'for free', and save more gas over time.
'Regenerative braking' recovers far less energy than acceleration requires to replace the momentum it loses. To 'coast' further without regenerative braking excessively slowing your automatic transmission equipped hybrid, putting just the right pressure on the accelerator can prevent the 'regen' drag without adding engine power (i.e. if done right the engine won't start AND the regenerative braking won't kick in). With manual transmission hybrids, just leave it in neutral to defeat 'regen' and coast further.
Try to schedule your trips and errands when traffic is lighter.
If you are always stuck in rush hour traffic after work anyway, try to find something to do near your work until the traffic dies down, rather than try to fight through it.
Some cars have a 'zig-zag' shift pattern for their automatic transmission (like certain 'Lexus' models). Many people shift the car past 'D' and into '4' because it 'feels right', then drive down the freeway complaining about bad gas mileage.
If you want more information about the mileage NOW, and your car doesn't have a real-time fuel economy distraction, there are various OBDII reader devices (like the 'ScanGauge' or 'Equus 3130') that can be plugged into cars with an OBDII port, and provide 'live' real-time information about fuel consumption rate (gallons per hour), engine RPM, speed, whatever you want that's tracked by the engine computer. Some of them also allow the data to be recorded and downloaded to a computer with a serial or USB cable. Some are little more than a serial/USB cable that plugs into a portable computer with software to give you all manner of 'instruments'.
The more convenient it is to check your tire pressure, the more often you'll do it. If you are dedicated enough to do it with a manual hand/foot pump, fine.
DON'T TOP OFF. It is wasted money, bad for the environment (releasing extra fumes) and evaporates in 10 minutes of driving.
- You can spend a little extra on a pretty good self-contained electric one with a jump start and flashlight on it, too, and then consider it a 'safety' purchase.
- If you have a garage, an air compressor has many uses besides tires.
- If you have a larger vehicle (with higher pressure truck tires), you will need a 'real' air compressor; the little electric ones made for cars will fail right away, and you'll wear yourself out trying to pump it yourself.

Warnings

All the fuel savings in the world will not matter a bit if you get wrecked while 'trying to save gas'. Safe driving habits will save a lot more money than risky driving, and maybe even save lives. Slow down. Be careful.
Nearly all gas-saving devices do not work, and some even decrease fuel mileage. Intake twisters, gas pills and fuel line magnets do not help mileage. Even if the mileage improvement claims were true, they often cost enough to negate any potential savings.
'Chipping' the car (changing/flashing the ROM in its 'brain') is usually meant to improve power, but often fuel savings are claimed as well. Be paranoid about it. It usually can achieve the power statistics it claims, but possibly at the cost of dreadfully expensive engine/drivetrain wear and damage. The wrong chip (or a buggy version of a chip) can result in a dead car that's expensive enough to repair that it's 'totaled'. Needless to say, 'chipping' a car definitely voids the warranty.
Nitrogen is a scam. You still need to check your tire pressure regularly, and putting nitrogen in will only make you complacent and dependent on the shop that did it (so you keep coming back and buying more services there). It is perfectly safe to put normal air in with the nitrogen on passenger vehicles. Nitrogen actually diffuses out of tires faster than standard air, due to the smaller nature of the molecule. Faster diffusion means more costly inflations. Air is mostly nitrogen, anyway. Race cars and airplanes? Yeah 100% nitrogen is still required. Normal car? If it's free with the tire change, don't bother complaining, but it does no good at all.
Be very careful when shifting into neutral when going down hills. You may find yourself going a lot faster than you thought you would. This is actually illegal in some jurisdictions, so never admit to a police officer you were 'free-wheeling' or 'coasting', or you'll get two tickets.
Be sure to keep to right lanes if you're not going to keep up with speeding traffic, and allow other traffic to pass. On freeways, watch onramps and try to leave space for merging traffic to get in, without braking if possible. Also, try to remain aware enough of your situation to realize when your right lane will become 'exit only' well ahead of time.
If you drive slowly enough on a long enough trip to add hours, be sure to take extra breaks.

Things You'll Need

A car

10 bad habits that lead to debt disaster

2007-05-21T20:36:00.000-07:00

Little things add up fast. Learn from these mistakes and try these tips to start paying off your debt.

Sometimes the only way to stop a snowballing problem is to go back to the top of the hill and find out what started it.

If you're up to your eyeballs in credit card debt, take a step back and recount your money missteps. Knowing your weaknesses could help prevent you from falling back into the bad-credit pit and show you a way out.

According to Gail Cunningham, vice president of business relations at Consumer Credit Counseling Service of Greater Dallas, a nonprofit financial-management service, consumers mired in debt make common financial blunders, most of which they can prevent with discipline and behavior changes. Learn from these mistakes and start paying off your debt.

Bad Habit No. 1: Misusing balance transfers

Transferring balances on high-interest cards to lower-rate cards can be an effective technique, but it's easy to make it a good idea gone wrong. Transfer a balance onto a card with a low introductory rate and you can potentially save money on interest if you refrain from charging on it and focus on paying off the balance before that introductory rate expires. But most people continue to charge on the new card and wind up with more debt once the teaser rate expires, says Cunningham. In fact, new purchases may pull an altogether different interest rate. Read the fine print very carefully, and only attempt the balance-transfer maneuver if you can control your spending on the new -- and old -- card.

Try this: If you can't refrain from charging, balance transfers won't get you out of debt. If you're really in the hole, consider getting a part-time job and dedicating your earnings to your debt load. If that's not possible, go back to your budget and cut back on unnecessary expenses such as restaurant outings and cell phone extras. Put the money you save toward paying off your balances. Pay for new purchases with cash or a debit card.

Bad Habit No. 2: Not checking credit reports -- you can't change them anyway.

Wrong. If you have credit cards, pull your credit report at least once a year and check it for errors. Purging your record of inaccuracies can be crucial for getting better interest rates, landing the job you desire and stopping an identity thief from ruining your credit rating. Your credit report also affects your credit score, which determines how high your interest rates will be on future loans. Dispute anything you think should not be there. The Fair Credit Reporting Act allows for the correction or deletion of inaccurate, outdated or unverifiable information, provided that a reinvestigation into the disputed data sides in your favor. Unfortunately, negative but truthful data must stay put. A Chapter 7 bankruptcy filing, for instance, will remain on your credit report for 10 years, a Chapter 13 for seven years.

Try this: You can request one free copy here from each of the big three credit reporting bureaus, Experian, TransUnion and Equifax, every year. Why bother? Errors on your report, such as a payment marked late that came in on time, could raise your interest rates, lower your credit score and affect your ability to obtain credit in the future.

If you do find a mistake, send a correction letter to each of the credit bureaus that show the error. Experian allows you to dispute errors online, as do TransUnion and Equifax.

Don't bother with so-called credit-repair clinics that aim to charge you hundreds or thousands to fix your credit record. "Anything you can legally do to repair it you can legally do for free," says Cunningham. Of course, if you're not willing or dedicated enough to write those letters and follow up with the credit-reporting agencies, paying someone else to do it for you may not be such a bad idea. Better to have someone dispute the errors rather than no one. But be extremely careful in selecting such an organization -- try to get referrals and seek out others who have been satisfied with the service.

Bad Habit No. 3: Failing to alert creditors about a financial hardship

You heard the rumor: Layoffs are coming to a department near you next week.

Don't wait until it happens to worry about how to pay your bills. Do some damage control right away.

Try this: "The best time to negotiate is before the problem spirals downhill," says Cunningham. Call the credit card company and explain the problem you're about to have. Ask if they could temporarily lower your interest rate or extend your payment deadline. Some issuers have in-house help programs that provide such short-term services to customers.

Bad Habit No. 4: Thinking of 'budget' as a dirty word

The word may call to mind tedious self-trickery meant for those with low incomes, but everyone could benefit from deciding on certain amounts for spending, and sticking to the amount no matter what. It also makes sense to budget for known future expenses, such as quarterly insurance premiums, college textbooks and rent. Not saving up in advance means you'll have to charge expenses or cut into funds set aside for necessities. Budget these fixed costs while you can handle small financial pinches.

Try this: To find out what's draining your finances, keep track of where your money goes for a month. Use a spreadsheet, financial software or a pen and paper and categorize your expenses. Doing this will reveal whether you're spending too much on expenses you could trim, such as restaurant outings and gas. Then you can consider cooking at home more often or consolidating driving trips. Cut back as necessary without cutting out expenses important to you. Cunningham suggests that if you enjoy watching TV, but don't tune in to a majority of the 300-plus channels you have, consider cutting back on your cable package instead of cutting out TV altogether.

For a detailed household spending plan, try this home budget work sheet. Or, get help creating a budget with a budget calculator. (For a really simple budget, try the 60% Solution.) Plan for future costs by figuring out the total amount you'll owe and divide by the number of months you have until that day, says Cunningham. If you have money due next month, divide by the number of weeks you have and save that amount every week.

Bad Habit No. 5: Using retail store credit cards to make use of discounts

Chances are, that card carries a high interest rate you'll be forced to deal with if you don't pay off your balance each month.

Try this: If you must charge your purchase, use your general-purpose credit card, says Cunningham. If you can't pay off the balance, at least you'll pay a lower interest rate. Limit the total number of credit cards you have to just two, if you can: one you can pay off each month and one with a low interest rate for those large purchases you'll pay back over time.

Bad Habit No. 6: Procrastinating on creating an emergency fund

Learn to save for financial emergencies. Even if you feel robust and invincible, a single emergency room trip or car accident could force you to put large balances on credit cards, causing interest to accrue and more debt to pile up. "That rainy day will happen," Cunningham says. "It's not a matter of if, it's a matter of when." If your tire goes flat and you can't pay upfront for the replacement, for instance, you're stuck with charging it or reducing funds earmarked for necessities. That's where the emergency fund fits in.

Try this: Maintain an emergency fund of at least three to six months' worth of living expenses, and keep your insurance policies up to date. Work toward that goal by socking away 10% of your take-home pay each month in a liquid savings account, says Cunningham. If you receive a raise or bonus, add that money to savings. Since you're not used to the extra cash flow, you won't miss it.

Bad Habit No. 7: Paying bills in no particular order

While the order may not matter if you can pay all the balances, it will matter if you fall short one month. Say you pay off the balances on your credit cards first, then find you can't make the minimum on your house payment or monthly rent. You've put the roof over your head at risk.

Try this: "Pay for living expenses first," says Cunningham. After the house or rent payment, necessities such as utilities, groceries and medical care should top the priority list. Next comes the car payment -- you want to avoid repossession, obviously. On down the line, secured loans and co-signed debts follow in importance, then unsecured loans and credit cards. "Ideally, everyone can get paid, but if a choice has to be made, paying in this order will do a better job of keeping the home life stable."

Since bills often aren't due in this order, you'll need to work out a payment schedule and set aside money from each paycheck. See No. 9.

Bad Habit No. 8: Charging purchases instead of paying in cash or with a debit card

How many times have you charged services or merchandise when you had the money to pay with cash or debit? Insignificant purchases of $20 and $30 made several times over can quickly add up, particularly if you already carry a balance. Balances you can't pay off each month mean paying interest charges and, subsequently, more money for items you could have bought outright, interest-free.

Try this: Make a habit of paying for purchases under $50 with cash, debit or check. Knowing that the money has to clear the bank sooner could help curb your spending habits. Just be sure to check your balance regularly to ensure that you have enough funds.

Bad Habit No. 9: Making credit payments late

After all, it's only a $39 late fee. Besides wasting money you could've put toward the balance, a payment that arrives at least 30 days past due can throw your account into default and triple your interest rate. Plus, other creditors may start charging you a default interest rate as well, thanks to a universal default clause buried in your contract.

"Creditors are constantly reviewing your credit activity, and if they see you falling behind with one creditor, even if you have a perfect payment history with them, they can raise your interest rate," Cunningham says.

Try this: On a calendar, mark upcoming paydays and payments that should come out of that paycheck, she says. If you're mailing payments, send them seven to 10 business days in advance. Better yet, sign up for online bill pay. Just check that the address on file and the address on the statement match, or the payment might not arrive on time. If you're still late, call the creditor, explain the situation and ask them to forgive the late fee. Check your credit report and be sure the information shows up correctly.

Bad Habit No. 10: Making the minimum payment only

Paying the minimum is better than paying nothing, but it doesn't do much to pay off most balances and forces you to keep paying interest. By paying interest on interest, you lose any savings from buying a dress on sale, Cunningham says.

Try this: If you can afford to pay more or in full, go ahead and pay as much of the balance as you can. You never know when you're going to have a tough month. Pay in full every month and you can avoid interest charges altogether.

Or, if paying more than the minimum proves difficult, consider working an extra part-time job or decreasing your expenses -- or both, says Cunningham. Put all of your extra earnings toward the debt. Use the minimum payment calculator to see how much you're saving in interest charges.

By Leslie Hunt, Bankrate.com

How to pay off $300,000 of debt

2007-05-21T20:29:00.000-07:00

I usually steer clear of war metaphors when writing about money, but for anyone who has faced down a mountain of debt, it can indeed feel like a never-ending battle.

By MP Dunleavey

Editor's note: Join columnist MP Dunleavey and a group of women as they seek to strip away the myths around money, liberate themselves from debt and find financial sanity. Follow the quest of the Women in Red every other Wednesday in Dunleavey's column on MSN Money.

How can you possibly win when the odds are stacked high against you?

As a fierce battalion of the Women in Red has found -- call this group Company C, for cocky, courageous and a little bit crazy -- the best way to beat debt is to band together, damn the interest rates and take the enemy by storm.
The birth of the racers
As Becky Purvis, 28, of Raleigh, N.C., describes it, the idea for an all-out assault on debt began in September on the Women in Red message board and gained strength slowly.

Someone suggested forming an online group dedicated to paying off debt, Purvis recalls, "and everyone said, 'Yeah, that's a great idea,' but then nothing happened."

Armed with a good $25,405 in credit card debt, student debt and car debt herself, Purvis started the Women in Red Racers to inspire other women to join a collective effort to vanquish their debt once and for all.

The rules were simple:

* Tally your debts and post them for all to see. Some people included mortgage debt; some didn't.
* Post monthly updates about how much you paid down -- or didn't.
* Don't give up.

A daunting battle
Consider what the Racers were up against:

Collectively, the 80 or so women who joined the thread were carrying more than $2.8 million in debt. Eleven people joined with over $50,000 in debt (most of those women included their mortgages), according to Megan Paterson, 29, a Washington, D.C., area woman who fell into the role of group accountant, keeping a detailed spreadsheet of each person's debt and payments.

"People were in such diverse situations," Paterson says, from a college student with $10,000 in credit card and car debt to a professional couple with $520,000 in debt, including two mortgages and about $130,000 in student loans. The top debtor, so to say, claimed more than $45,000 in nonmortgage debt.

7 radical ways to save money

2007-05-21T20:09:00.000-07:00

Want to really save? Take a look at how you spend and change it. Quit smoking, take in a roommate, park the car -- and you'll save as much as $12,000 a year.

By Jennifer Mulrean

It's getting harder to blame savings shortfalls on your measly pay stub.

In fact, how much you save has little to do with your income, research by economists Steven Venti and David Wise shows. It has more to do with whether you want to save and are willing to adjust to boost your saving.

Ventis and Wises 2000 study, "Choice, Chance and Wealth Dispersion at Retirement," found a wide range in how much people at the same income levels were able to save for retirement. The study also pointed out that it wasn't just the higher income folks who managed to save the most. Indeed, people in the lowest income groups were able to save more than some of their middle-income peers -- by about $100,000. (See link at left to read the complete study.)

Their conclusion? "Persons with little savings on the eve of retirement have simply chosen to save less and spend more over their lifetimes."

The key, then, is spending less than you earn.

Tahira Hira would agree with this conclusion. A professor of personal finance and consumer economics at Iowa State University, Hira has spent more than 25 years studying how and why people spend, and why some people get into financial trouble.

"We don't stop and think that earning money is only one part of financial health," Hira says. "The other part is learning how to manage money."

Many people don't have a clue
A big source of money problems, Hira says, is that people just don't know enough about their own financial reality. "They don't know what they earn, they don't know what it takes to live, and they don't know their discretionary income."

Her advice? Educate yourself. Sit down with your monthly bills and statements and figure out your income and outgo. Then, decide if you like the picture you see. If not, you'll need to create a plan for changing it.

To help with the process, Hira recommends asking your self these three questions:

Who am I? What's my current financial picture?
How do I want to live? How do I want to use my money?
How can I make the best use of my money?

Treat managing your money like you would any other household task and allot enough time for it every month.

Hira notes that many of the financial tools that have made life more convenient -- such as credit cards -- can promote bad financial habits and prolong debt when misused. Credit cards should be used as the cash-management tool they are, not a borrowing tool, she says.

"We're spending tomorrow's money when we put things on a credit card," she says. "You keep locking yourself up and losing your freedom."

Her bottom line on financial health? "Stop spending."

7 radical savings tips
To help curb the consumer in you, we've come up with a few of admittedly drastic savings strategies, along with some ballpark figures of their savings potential. (If you're looking for a real no-brainer way to save, arrange to have a certain amount of your paycheck automatically deposited into a savings account. Then, sit back and watch it grow.)

Hold the mother of all garage sales. Cast a critical eye on the stuff at the way back of your closets. If you haven't used it in six months, chances are you can do without. Same goes for all that junk in storage. (See "The hidden costs of too much stuff." ) Annual savings? Depends on how much junk you have, of course, but one coworker guessed he had at least $5,000 worth of stuff he could get rid of. I'd put my own garage sale potential down at around $1,000. Thats a good number.
Quit smoking. Pack-a-day habit? In Washington state, that's easily $5 a day -- or about $1,800 a year -- that can go right into your savings, not to mention what it saves you on insurance and health care.
Tame your driving addiction. In other words, carpool or use public transportation. This saves on gas, insurance and maintenance costs -- not to mention any money spent on aspirin. Using the IRS's 2002 mileage reimbursement rate of 36.5 cents per mile as a proxy for the cost of commuting, you could save $1,141 a year by driving half the time for 50 weeks a year (based on a 25-mile roundtrip commute). For an even more drastic approach, consider getting rid of your car if you live in the city. Some cities are now implementing progressive programs that allow you to have access to a car without the ownership hassles (e.g. "Flexcar" in Seattle, Portland and Washington, D.C. For more on Flexcar, see link at left.)
Buy used. The average consumer spends about $1,750 a year on clothing and its upkeep, according to the U.S. Bureau of Labor Statistics' most recent Consumer Expenditure Survey. You can potentially cut that in half by shopping at consignment shops and auctions, though the life of the goods may be less than buying new. To account for that, the annual savings may only amount to 25%, or $437.
Become a homebody. At just over $1,800 a year on average, entertainment spending has a way of quickly eating through the best-planned budgets. Consider the library for books, music and movies. Eat out less often. The average person spent $2,276 a year on eating out in 2002. Try cutting your spending in half on both areas for annual savings more than $1,900.
Cut your housing expenses. While a move across the tracks may save some money, moves are expensive in themselves. Consider renting out a room. The average housing costs per person in 2000 were just over $13,200. In metropolitan areas such as Seattle, rooms easily go for $400 a month. Figure about $20 of that goes to increases in utility costs, and you've still got an annual savings of more than $4,000 before any income taxes.
Cut up your credit cards. Build an emergency fund first to handle most unexpected expenses. This allows you to become your own lending agency. (OK, if you're chicken, try cutting up all but one.) Credit cards can be a cash-flow management tool, but paying only the minimum will keep you in debt for years. If you're the average American with at least one credit card, you probably have close to $8,523 in credit card debt, according to industry research group CardWeb.com. At an average APR of 14.4%, it could cost you as much as $1,100 a year in interest alone. By simply waiting until you've saved enough money to make purchases, you could eliminate those interest payments entirely.

If you're really ambitious and follow all the above tips, you could be looking at savings of nearly $12,000 a year. Figuring you can invest it at the historical rate of return at 10% your savings will start to compound nicely -- and rapidly.

25 Ways I Save Money

2007-05-21T02:34:00.000-07:00

Let's start a wave of information- What are 25 different ways you save money?
Whether it be daily or once in your lifetime, either jot it down in the comments or post to your own blog and I will link to it here. (just let me know in some form) It is always good to take a step back and see what good you ARE doing and where you can do better.

Here are my ways I have and continue to save money :
1. Change light bulbs to CFL bulbs to save money
2. Use Heat and Air Conditioning sparingly
3. Use the light of Day instead of lights in the house
4. Pay bills online or in person, instead of using stamps
5. Keep razorblades dry and clean so that they last longer
6. Write checks for over the amount instead of using an ATM with fees
7. Use plastic containers to store left over food for eating later
8. Turn off all lights when not in a room
9. Leave the car at home at least one day out of the week
10. Borrow books from the library instead of buying them
11. Use coupons and check grocery circulars to get the best deals
12. Cook meals at home, cutting back on eating out
13. Take lunch to work
14. Watch movies at home instead of in the theater
15. Wash clothes every 7-10 days
16. Wash clothes in cold water to save on heat
17. Every 6-12 months verify I am getting the best deal on utilities and insurance
18. Cut out all subscriptions to magazines unless I can get them free
19. Buy foods in bulk or when items are clearanced and save in freezer
20. Pick up money from the ground and save in a coin jar
21. Round up in check book and place excess in savings at end of the month
22. Making use of Employer’s 401k matching limit
23. Put raises or bonuses in savings or apply towards debt
24. Do research online for best value for money on medium to large priced items
25. Jump at the chance to take home food from work potlucks when asked

Since everyone saves money a little differently and we all can learn a thing or two from each other, check out other people's thoughts on ways THEY SAVE:
1-MBHunter spills the beans on his Twenty-Five ways to save money
2-Blue takes the path to savings in 25 ways and hasn't looked back
3-In Maggie's Madcap life, she still has 25 ways she saves money
4-Chuck pulls together his top 25 ways to save money
5-Kelly journey's through life with her ways to save money
6-Deb's living the life with 25 ways she saves money
7-Elizabeth finds the true luxuries in life that are bonus' to her 25 ways she saves
8-Hammy from 'down under, lets loose his warrior spirit and finds 25 ways to save
9-Getting to Enough blogger shares their ways of saving and ways to improve
10-David tightens his belt and goes over the 25 ways he saves, until he finds a job
11-Ariane lists 25 neat ways she saves money and simplifies her day
12- Tiredbuthappy takes a look at her 25 ways to save money
13-Meredith gathers her valuable ways to save money
14-Jane suprises herself and finds out she has 25 ways she saves money
15-Thrifty Mommy takes on the challenge to find her own 25 ways she saves money
16-Jennifer gets ahead by trying some of her 25 ways to save money
17-Jenn presses forward and jots down her frugal ways to save money
18- Angela bytes on the idea to jot down her 25 ways to save money
19- 25 Slightly Unconventional Ways to SAVE your Pennies comes from the east in a perspective from New Hampshire
20- The Queen of Carrots stretches her vegetable to comes up with 25 ways she saves money.
21-Susan has some Fruitful savings by listing 25 ways she saves
22- Lynette chronicles her 25 ways to save money....and catagorizes them as well.
23- Eve takes time from decluttering to jot down her list of 25 ways to save.
24- Busy Blogger got to work on 25 ways to save money as well
*25*- Sharon shows us her royal 25 habits for saving money
26 - Matthew gets green with his 25 Realistic Ways to Spend Less and Save Money in College
27- Prince of Thrift posts his Frugal 25 Ways to Save Money
28 - Kim goes through her Frugal Life to find her 25 Ways she Saves Money
29 - Bibliozona indexes her 26 ways to save money
30 - The NYC Insider gives us the bite on the 25 Money-Saving Travel Tips
31 - The Family CEO manages a gathering of 25 Things I Do to Save Money

25 Gadgets That Actually Save Money

2007-05-21T02:22:00.000-07:00

I admit it: I’m a gadget addict. I like little devices that do neat things. At the same time, I also like to save money. What is a poor modern man to do with these two conflicting interests?

Simple. I buy gadgets that can pay for themselves (and even see a bit of return) over the long haul. This usually means I look for energy-efficient gadgets, but it also means that I try to evaluate things in terms of whether or not they can potentially return money to me. What’s nice is that many of these gadgets that save me money in the long run make a great deal of environmental sense as well.

Here’s a list of twenty five neat items I’ve found that can save a lot of money, along with their cost and the amount of time that it will take before their extra cost is paid for by their utility. Since they’re gizmos, they make for great gift ideas, plus you can use the argument that “this will save money” when suggesting the purchase of one of these items to your significant other. In fact, I actually started this list as justification to my wife for a few items I wanted to buy for myself.

1. Filtered Water Bottle
Sample Model: Katadyn Exstream Personal Water Bottle Purifier
Price: $39.95 + $32.95 cartridge refills
Time Until Break Even: 180 days of daily use

If you drink a bottle of water each day (as you should), but you buy bottled water instead of drinking tap water, you can pay for this nifty device in half a year. You can fill it from any tap and the internal filtering device will clean the water for you, eliminating viruses and bacteria. Thus, each day you use this bottle, you pay off a little more.

2. Battery Charger
Sample Model: Rayovac Universal Battery Charger
Price: $17.95
Time Until Break Even: How many kids do you have?

My son has a bevy of toys that just gobble batteries. It seems like every day I’m dropping more and more batteries into these devices. Thankfully, a battery recharger can trim the costs down really quick. Just take your Rayovac AAs, toss them in this, plug it in, and they’re good to go again. It’s absolutely perfect for parents that have children with lots of battery-powered toys.

3. “Smart” Power Strips
Sample Model: SmartStrip LCG4
Price: $34.95
Time Until Break Even: 60 days

If you use a desktop computer at home, it won’t take long until this device is a money saver for you. Simply plug in your main unit into the control outlet and all of your other peripherals (monitor, printer, speakers, etc.) into the other outlets. Whenever you power on your computer, the other devices power on; whenever you power off your computer, the others power off. Even better, it actually functions as a switch, so when your main unit powers off, there is no phantom “standby” electricity being drawn to the other peripherals. Not only will you save money on the powered-down peripherals, but you’ll save money from the lack of phantom charge.

4. Blender
Sample Model: Oster Classic Beehive Blender
Price: $47.99
Time Until Break Even: 6-12 months

A quality blender (like the one above) can save tons of money if you use it regularly. You can switch to grinding your own herbs, spices, coffee beans, and so on. A regular kitchen user can make back the price on herbs alone if they buy fresh herbs and grind them in the blender for long-term storage. Plus it’s invaluable for making drinks at home when you have guests, which ends up being much cheaper than a night out on the town. Get a good one, though, so it will chop and cut what you want.

5. Electricity Usage Monitor
Sample Model: Kill-a-Watt Electricity Usage Monitor
Price: $24.99
Time Until Break Even: 3 years

With this device, you can see how much of a phantom load your powered-down electrical devices are still pulling through the wall outlet. If you discover devices that are pulling a significant load, unplugging them (or using an appropriate device to stop the drain) will save you money over time. This device is also useful for figuring out how much power various home devices are draining and, with some quick calculations, exactly how much it’s costing you.

6. Flash Drive
Sample Model: Kingston Data Traveler 1 GB
Price: $17.95
Time Until Break Even: 1 month

I find countless uses for my flash drive, the best of which is for an emergency backup of key files. A flash drive has saved my cookie during hardware crashes and it has also saved a lot of money in terms of burning CDs for software installation packages off the network. In short, it’s invaluable.

7. High End Solar Calculator
Sample Model: Texas Instruments TI36X
Price: $10.99
Time Until Break Even: 2 years

I like to keep one of these in my pocket for doing calculations at the grocery store. Which package is the better deal per unit? It’s always a good idea to figure this out before blindly making a purchase at the store. Plus, with a solar calculator, you don’t ever have to worry about batteries or anything else - just keep using it.

8. Efficient Power Supply
Sample Model: Antek EA 380
Price: $81.00
Time Until Break Even: 1 year

A high-efficiency power supply not only protects you from electrical faults, it also ensures that your devices drain electricity at the minimum rate, which means your power bills go down. If your home has any sort of questionable power distribution, this device is essential for protecting your electronic equipment, but even if you have normal power, you can save money with this gadget because of the power drain that it reduces.

9. Compact Fluorescent Light Bulbs
Sample Model: GE Soft White Spiral T4
Price: $1.79
Time Until Break Even: 4 months

CFLs can easily save $100 a year, plus they look a lot cooler than ordinary bulbs. The simple fact of the matter is that by merely replacing a regular bulb with a CFL, you’ll save about a dollar per bulb every two months or so.

10. Efficient Shower Heads
Sample Model: Niagra Conservation Earth Massage Showerhead
Price: $15.99
Time Until Break Even: 10 months

High efficiency showerheads save money by reducing the amount of water that needs to flow through your hot water heater. An average American household can save as much as 15,000 gallons of water per year by installing high-efficiency shower heads. Even better: that’s 15,000 gallons of hot water that your heater doesn’t have to heat, cutting down on your energy costs as well.

11. Fuel-Efficient Scooter
Sample Model: 2006 Vespa PX 150
Price: $4,200
Time Until Break Even: 4 years

A high-efficiency scooter is perfect for people who have a relatively short work commute that’s just a bit too far to walk every day. Leave that car in the garage and travel on a scooter. Plus, you can scoot around town and quickly run errands on this thing. Of course, a bicycle is even less expensive, but scooters are much faster and won’t leave you sweaty when you arrive.

12. Solar Outdoor Lighting
Sample Model: Silicon Solar Innovision LED
Price: $12.95
Time Until Break Even: 180 evenings

This is a great choice if you want to light your yard and patio in the evening but don’t want to spend on electricity all the time. Solar powered outdoor lighting will provide adequate lighting for much of the night after recharging themselves during the day. Their design incorporates solar panels, a nice geek factor, and they can provide wonderful low light in the evening, perfect for a nice ambience.

13. Dance Dance Revolution
Sample Model: DDR Extreme 2 (plus peripherals)
Price: $200
Time Until Break Even: 8 months ($25/month gym fees)

If you use the gym for a cardio workout, cancel your gym membership and get a home video game system, DDR, and a good quality dance pad. The game itself provides all the motivation you need, plus you have to be in pretty good shape in order to play the game for extended periods. I lost about 20 pounds playing DDR instead of going to the gym once upon a time.

14. Self-Cleaning Electric Shaver
Sample Model: Braun 8995 360 Complete
Price: $169.13
Time Until Break Even: 8 months of daily shaving

A top-quality self-cleaning rechargeable electric shaver saves significant money for each shaving over disposable razors and shaving cream. Although there are still upkeep costs (recharging, a rare replacement of the blades, and facial wash), the costs are much less than what you’ll incur with shaving cream and blades. Plus, you get the unbridled joy of owning a new gadget.

15. Espresso / Cappuccino Machine
Sample Model: Gaggia Carezza
Price: $200
Time Until Break Even: 80 visits to a coffee shop

Do you stop by Starbucks each day to pick up a fresh cup on your way to work? If you invest in a decent cappuccino / espresso maker, those visits can go right out the door; you can make it at home and it tastes at least as good as the stuff at the shops, especially chain ones like Starbucks where they have the “process” down to an art form. Plus, once you get used to using it, you can experiment a lot with different beans and grindings and make some truly sublime homemade coffees.

16. Programmable Thermostat
Sample Model: Honeywell 5/2 Programmable Thermostat
Price: $39.99
Time Until Break Even: 6 months

If you have central air conditioning, you need programmable thermostats. They provide very precise temperature control and can be programmed to automatically lower your air conditioning and/or heat use while you’re not home. Just program it and forget about it; it will automatically adjust things for you so that you aren’t wasting electricity and money.

17. Coin Sorter
Sample Model: FastSort Electric Coin Sorter
Price: $95.99
Time Until Break Even: 2 years

Most banks will no longer count change for you, but they will accept pre-rolled coins as deposits. CoinStar, on the other hand, will cash out change for you, but they have a 10% surcharge. Why not just sort and roll them yourself? Keep this device on the dresser, dump in your pocket change each night, change the rolls in and out (the device comes with a bunch of coin rolls), and when you go to the bank, take in a bunch of coin rolls and deposit them. Over time, the device pays for itself over the amount you would lose using CoinStar.

18. Efficient Space Heater
Sample Model: Honeywell HZ-315
Price: $19.95
Time Until Break Even: One cold winter

Small, efficient space heaters can save a lot of money because they allow you to not have to spend lots of extra energy keeping some rooms heated (such as the bathroom). Instead, just put in a space heater and turn it on when you take a shower. It’s substantially cheaper than keeping that spare room heated. Plus, you can use them when working in the basement or other rooms that you don’t bother to heat, or in the bedroom at night if you lower the house heat during the nighttime hours.

19. Solar Christmas Lights
Sample Model: Silicon Solar LED Christmas Lights
Price: $59.95
Time Until Break Even: 2 Christmas seasons

Instead of buying strands of electric lights for outdoor Christmas decoration, get a set of solar LED Christmas lights. They eat no electricity as they charge up during the day, come on automatically in the evening, and stay on most of the night. You can just set them up and let them be with no maintenance cost or effort at all. The start-up cost is a bit high, but the cool factor of LED solar Christmas lights, plus the energy savings, quickly makes up for it.

20. Remote Control Power Strips
Sample Model: Lacrosse RS-204
Price: $29.95
Time Until Break Even: 2 years (depending on use)

Quite often, we find ourselves plugging lots of lights and decorations in during the Christmas holidays, and it becomes a hassle to power them all off and on, so we often leave things on more often than we’d like, sometimes even overnight. To solve this problem, install a remote control power strip. This device can be turned on and off by remote control, meaning that you can have all of the cords out of the way and flip the Christmas tree lights on and off with just a button click.

21. High Efficiency Washing Machine
Sample Model: Whirlpool Duet Front-Loading High-Efficiency Washer GHW9150P
Price: $859
Time Until Break Even: 3 years

If you buy a large-load high efficiency front loading washing machine, you’ll do many fewer laundry loads per month and each load will take less water than before. A machine like this can easily save $10 over a regular machine in water usage in a family home per month; even better, a large load machine will save a lot of time. Given the cost of a normal low-end washer, it should only take three years or so for this machine to pay for itself.

22. A Laptop
Sample Model: Dell Inspiron E1505
Price: $819
Time Until Break Even: 1 year

Now that laptops have reached a usability and reliability standard that approximates desktops, it becomes a serious choice whether or not to replace a desktop with a laptop. If you make the leap, you’ll find that the energy savings are tremendous. I often run it from battery at home and charge it using available outlets in other places, such as the local bookstore, meaning I have very little home energy use from the laptop. It won’t take long for this savings to make up for the differences in cost, plus you’ll have all of the laptop portability advantages.

23. TiVo
Sample Model: TiVo Series 2 80 Hour Dual Tuner
Price: $49.99 + $9.95 a month
Time Until Break Even: 6 months

If you have cable and a TiVo, your needs for DVD purchases and rentals will almost disappear simply because of the plethora of programming you’ll be able to watch commercial-free. This will begin to save you money before long, plus it will give you a much greater control over what you watch on television - I skip a lot of programs simply because of the commercials and the inability to pause them to chase my child.

24. A Hybrid Car
Sample Model: Toyota Prius
Price: $22,175
Time Until Break Even: 5 years

If you compare a hybrid side-by-side with a non-hybrid, the hybrid costs more up front. The savings, though, kicks in over the life of the car with much lower fuel costs. Plus, it has a great “geek factor” and it’s a solid environmental decision.

25. A Residential Windmill
Sample Model: Skystream 3.7
Price: $8,500 (including installation)
Time Until Break Even: 8 years

If you want to be “king geek” in your area, few things will top this. $8,500 will get you a windmill on top of your house, which can, by itself, take care of almost all of your home electrical needs. It looks like a high-tech antenna up there, quietly whirring away, using the wind to provide your juice. For an average household, the device will pay for itself in eight years; after that, it’s all gravy. Plus, you’re helping the environment by almost eliminating your load on the power grid.

Sometimes, you can buy gadgets to save money.

118 Ways to Save Money in College

2007-05-21T02:02:00.000-07:00

So you have already looked for scholarships, grants, and loans and are still finding it hard to pay your way through college? It goes without saying that the typical college student is either broke or financially hanging in the balance most of the time. We’ve assembled a long list of both practical and creative ways you can save some green while you’re going to campus.

Managing the Money You Have

To save money you need to manage it. I hate to get on the topic of money management right off the bat, but if you expect to save money you need to be a bit savvy with the little bit of cash you have:

Get a free checking and savings account. The bank will nickel and dime you on dumb stuff like too many ATM withdrawals, too many checks written, or a funds transfer. Shop the town for banks catering to students. Make sure you can access online banking, pay bills and manage your account without attached fees.
Take the free checks that the bank offers in the maximum amount they allow - mine was initially going to give me 50, but for some reason I thought I needed more right away and paid $4.95 for another 50. If you need more, you simply go online and order more, but leftover checks are more typical than not, especially with online bill pay options becoming more commonplace. Extra checks become nothing more than wasted paper and wasted dollars.
Failure to keep track of your bank/checking account can easily cost you money via overdraft fees. Your debit card can easily get you into the red if you don’t know what’s in your checking account. Think your card will be declined if your account has insufficient funds? Think again.

If you go into the red in your checking account, your debit card will usually continue to work without even so much as a burp. Every time you make a debit card purchase while you have insufficient funds in your checking account you are also being slammed with a banking fee. (My banking faux pas cost me $250 in fees one weekend because I didn’t pay attention to the balance in my checking account and my debit card just kept on smokin’. On top of that, the bank charged me another separate fee to transfer funds from my savings account to my checking!) Unless you have an automatic overdraft protection that enables funds from your savings account to be transferred, you can be way more broke than you ever imagined in one, short weekend. Make sure you know what banking fees you’ll be spanked with if you make a mistake.
If you have to have a credit card, make sure you get one with the lowest interest rate possible; no annual fees and with only enough of a credit limit to get you by in an emergency. Don’t carry it with you, but instead keep it in a safe place known only to you.
Pay credit card bills on time. Companies charge late fees, sometimes as much as $50 per month. And do not go over your credit limit—that offers just one more way for your credit card company to get rich off your poor judgment.
Serious about saving money, huh? For one month save every receipt of everything you purchase, from a pack of gum, a tube of toothpaste to your computer. Log each expense in a notebook. When the month is up, tally up what you’ve spent and take a good look at just where most of it went. Food? Beer? Gas? Games? This sure fire technique will unabashedly expose the evils of your spending ways.
Save that spare change you’ve got jangling in your pocket or sloshing around in the bottom of your backpack or purse in a big jar or can somewhere out of the way.
- Count and roll spare change yourself.
- Stay away from those coin-counting machines you see at the grocery store. They will rip you off or at the very least charge you a fee.¹

Alcohol

It’s an expense many college students will not forego. Each year, college students spend about $5.5 billion on alcohol, mostly beer.² So here’s how to save, and some creative alternatives for your favorite beverages.

Don't drink. But if you must...
Be cheap
- Buy the cheap stuff. Pabst Blue Ribbon and Old English 40 oz. bottles come to mind ;)
- Buy in bulk. A cheap 5th of Vodka might cost about the same as a drink or two at a bar.
- Drink where the specials are. Some college bars and dance clubs have pitcher specials, 1 dollar drink specials, no cover charge, or other specials for people going out early or going out on slower nights.
- Pre-game if you do drink heavily.
- Don't bring much money with you to limit how much you drink and spend.
- Hit other people’s parties.
For those beer lovers who really dislike the cheap beer, join a beer brewers club or get a group of dorm mates to brew beer. In the last few years the hobby has grown exponentially and college students everywhere are brewing. Warning: brewing may not be “legal” in your dorm room….que sera, sera.
Hate beer? Brew cheap wine.
At a sit-down restaurant avoid ordering the alcoholic beverages. Most restaurants make a killing on beer, wine and fancy cocktails. The alcohol mark up can be anywhere between 75 and 400 percent! An option is to shop for BYOB restaurants.

Books

Every college student must buy books. You’ve probably heard horror stories of textbook “final bills.” Well, we have options that will save you money on your textbooks. Make sure to allow yourself time; don’t wait to run to the bookstore the day before your class begins.

Before you even think about putting out money for a textbook, don’t you think someone else on campus had to already have one? Borrow if it’s possible.
If you can’t borrow, buy used college textbooks. On sites like Amazon.com used hardcover books are often cheapest. Soft cover are more valued for convenience, so if you’re willing to haul a couple extra ounces, then hardcover is the cost-saving choice. ISBN.nu allows you to easily compare book prices from major online book stores. The campus bookstore will sell a supply of used books, but they are limited; so check the online sources as well.
If you are buying new, check for an “international” edition. The book will be almost exactly the same, except for maybe some Chinese characters on the front, AND it will be exponentially cheaper.
Have your own store of used textbooks?
- Sell your used textbooks online and make some cash for yourself, at the same time you will help some other starving students save their money.
- Or you can sell them back to the campus bookstore, but expect to take a big hit on the value if you sell them back to the book store. Some sneaky students wait in the campus bookstore with their old books in hand, trying to connect with new students that need their books, hoping to strike a better payout directly.

Food

Food is one of the top priorities in a college student’s life. Eating fast, eating healthy, it can all cost money if you don’t take time to consider the nitty-gritty of eating to save money.

Trying to eat on 12 cents? Two words: Ramen Noodles.
If you live on campus and pay for a partial or whole meal plan, then use it. Some programs don’t restrict you from taking food to go or eating as many meals as you wish. Peanut butter packets are your friend :)
Have a coffee fix? If you are one of millions of college students ducking into the corner coffeehouse every morning for your daily cuppa Joe, then you are wasting money.

Your daily latte, cappuccino, or mocha will run you between $2.50 and $3.50 depending on the size you need. Seven days of that routine costs you $17.50 per week, $70 per month and around $280.00 per semester! That’s over $500 a year you drank in morning caffeine. Make your own. By the time you graduate from a four-year degree, you’ve saved over $2000 in coffee beverages. That’s just one a day….Buy a decent coffee maker or even a small espresso/cappuccino machine for your dorm room or apartment. You’ll save hundreds of dollars.
Don’t tip just because someone poured you a cup of coffee. Keep your own change. Everyone wants a tip; “Poor college students work here…..” You’re poor, too. They have a job. Drop it in that change jar we mentioned under “Managing the Money You Have.”
Oatmeal is fast, filling, and affordable.

Skip the fast food forays and late night take-out. Make sure you keep healthy, affordable options in your room or apartment. Yogurt, cottage cheese, string cheese, bagels, peanut butter are all affordable, convenient and much more healthy than a late night burger and fries.
Collect coupons and follow the weekly sales at the grocery store. Avoid high-end markets like Whole Foods. These are nice, but most products cost much more. Once you’re out of school and have a good job you can shop the upscale markets.
Kick the bottled water habit; support your local tap water and drink for free. Get a some kind of filter if you want better tasting water.
Avoid a sit down restaurant with a large group. You’ll already be charged at least 15% gratuity, and if everyone decides to “split the bill,” you can really get screwed if you tried to eat cheap and didn’t splurge on alcohol. Know in advance what the tone of the party will be and what will be expected so you’re not surprised when the bill arrives.
Many people suggest sharing a larger meal at a restaurant, but make sure you’re eating someplace that doesn’t ding you with an extra charge for splitting.

Don’t have anything to eat, dining hall closed? Go to a take-out joint if you must, or some other low-cost eatery where self-serve is available and you are not obligated to tip.
If you’re on a date, prepare a simple, candlelit dinner and stay in; it’s not the food that counts, but the ambianc. Get your roommates to stay out for the night. Bonus ambiance tip: don't forget the Courvoisier.
Save your tip if the pizza guy gets lost, your order is messed up, or he is lacking in customer service and general niceness.³
Want free pizza? If you are studying computer sciences, hit Google up for free pizza.

Computers - Hardware and Software

Not many college students can survive these days without their own computer, but do you need to put out the big money for a souped up version, or can you make it on the stripped down model? Begin by shopping wisely following these money-saving tips:

If you’re buying a computer, save by shopping the student specials; discounts, rebates and back to school specials. Some regions/states even have a tax-free shopping week. Apple Computer offers student discounts to students and teachers, and consistently advertises important education incentives and rebates. I recently bought an Apple laptop because it was bundled with a free Nano iPod and a free photo printer, copier, scanner. These freebies were rebate items so I had to take the time to fill out online applications and attach copies of receipts and bar codes from the packaging, but my total savings was close to $400 for some very worthy items. Other computer companies offering student discounts:
- Dell Computer offers student discounts directly through a participating college or university.
- Hewlett Packard’s Academic Purchase Program is available to eligible students and teachers. You have to sign up. Word has it that you can save around 15% on the purchase of an HP computer. ⁴
Should you go for the inexpensive desktop or the snazzy little notebook model? Okay, all college students want a sharp-dressed little laptop they can take with them to class or the coffee shop. But if you know you can do without the laptop, you will possibly save hundreds of dollars shopping the desktop models. Bank the most savings if you opt for a model that gets the job done without a lot of extra (read “costly”) bells and whistles. If you MUST have a notebook, you may consider exploring the refurbished notebooks; a used laptop will cost significantly less than a model not driven off the lot yet, and in some cases you can get a darn attractive warranty and a good system to boot.
While you’re in college don’t take risks with your electronic equipment. Laptops and other trendy little electronics can be made off with quickly in a dorm environment. Unless you’ve bought some renter’s insurance, you will foot the bill to replace.⁵ Keep your room locked and valuables stowed.
Software is another high-dollar item. Using Linux software will keep you away from the higher-priced Windows alternatives. You can also buy discounted software through Apple’s Education Store. The company specializes in attracting college students and offers enticing student discounts and rewards. Microsoft discounts for students come in the shape of mass “licensing programs” through participating colleges and universities. Also shop online software clearinghouses for discounted products from all vendors. Many categorize by subject.
Freeware and shareware are a great way to get your hands on games, utilities, spyware removal, anti-virus and firewall programs:
- Tucows features thousands of products free or for just a few bucks-- “rated and reviewed.”
- Download.com offers free music, videos, games and utilities.
Decline extended warranties. Your computer should be under manufacturer’s warranty for the first year anyway. Companies dupe you into believing the plan is worthwhile. They become rich off your extra cash. Anything extra is likely just….extra.
Not only do we suggest you protect your physical property, but you’ll head off future repair bills if you protect your computer investment with anti-virus software and a firewall. Anti-virus and firewall protection will keep your computer in top working order and it will last much longer. When shopping for software avoid retail electronics departments. Instead seek out some good freeware and shareware products on the sites we mentioned in #35.
Your computer printer is a costly headache when the ink cartridges run dry. Aaaagh! Cartridges at an office supply store can cost you top dollar. Leave with a black cartridge and a color cartridge and you will likely have spent $40 or more.
- Try shopping for printer cartridges online, compare prices and find free shipping.⁶
- You may be able to get your ink cartridge refilled economically from a local ink refilling store like CartridgeWorld.
- If you are daring and a do-it-yourself type, ink refill kits can cost as little as $5 per cartridge.
Hacker ethic? Lifehacker shows you how to convert a laptop into a DVR recording fiend.
Have you ever tried to throw away an old computer? You cannot just put computer components in the trash, and that includes monitors and printers. Old inoperable computers must be recycled. Recycling typically costs you money. Facilities that recycle, and most municipalities do, must charge for their disposal services. Also consider asking if hard drives are “de-gaussed.” This means they are magnetically erased en masse. Besides municipalities and recycling businesses, some computer manufacturers such as Dell and Apple provide customers with their own recycling programs.

Entertainment- Music, Movies, Arts and Culture

You’d think you would have plenty to keep you busy what with studies and all. How to entertain oneself, on the cheap, is one of the major concerns for college students. Our best advice is to be creative.

Forget about the T.V. You can watch cable television through your computer. Make sure your desktop or laptop has a DVD/CD player and you can also watch your favorite movies. Your laptop has graphics equal to most HDTVs, so enjoy.
Nearly as essential as the T.V. is the stereo. Today’s computer speaker sets have clear high and midrange sounds with clean bass. You should be more than satisfied using your computer as the stereo. If you have your music library all set up in iTunes all you have left is to outfit yourself with a decent set of speakers and you still have saved money. Websites like Pandora create custom music channels based on a song or artist of your choice.
Trying to save money on going out to the movies? Hit the matinee showings. Look for free movies on campus; chances are you will find classics, independents, student films, noir and experimental.
Rent DVDs as a group. Pass the disk along before its due date. Everyone watches for a fraction of the cost to rent. Only share with responsible friends.
Subscribe to DVD rental service like NetFlix.
Have a stock of your own personal DVDs you don’t want anymore? Turn them in for credit at most of your brand name video stores.
Make your own movies. Talk about hours of entertainment. Stage your own music videos or film a short. Screen for friends, share a beer and laugh your a------s off.
Saving money on music opens a virtual Pandora’s box of methodology. If you decide to use a file sharing network program, make sure you do your research on the software program to make sure it doesn't contain any spyware or other inconvenient additions. You know, most of the mainstream pay-per-song sites cost just as much as if you went and bought a whole CD. You can still save money by just buying your favorite singles, and there are, however, many places that allow you (legally) to download music that is free- copyright-free, that is. Most of what you will get is the work of new and upcoming artists, but if you are the experimental type, you can find yourself a whole library of music. This is precisely how many future music stars are found:
Buy used CDs at the local music shop. Turn in your old CDs for credit and you may never have to exchange real money!
Start a book club. Read for entertainment, then get a group together to discuss it and enjoy each other’s company. Any interest would work for group involvement: stamp collecting, scrap-booking, weight training, running, cooking, and chess. My favorite book is A Thousand Years of Nonlinear History. It rocks.
Study groups help keep you focused on the primary reason you’re in college- to get an education. The more time you spend being focused and involved, the less time you have to spend money on frivolous things.
Offer your services as a tutor. Anytime you have the opportunity to help others is less time you have worrying about what you don’t have or think you need. The sooner you find out that you can survive nicely on very little, the better off you will be; or should we say, the richer you’ll be.
Avoid spending money this weekend. Be creative in what you choose to do, even if it includes a picnic, a long walk, flying a kite, a pick up game of soccer or football, an impromptu poker game (not played for money), or reading a good book.
Volunteer in a soup kitchen or help build homes with Habitat for Humanity. Community service activities like this will not only help you fill free time wisely, but you’ll come away with a real appreciation for those who have no money.
Pick up a local newspaper and check upcoming events for freebies: concerts, arts and crafts fairs, theater, festivals, art galleries, and museums.
Opt instead one Saturday evening a month to stay in and do something alone and for yourself. Enjoy a bath and a good book. Like Kung Fu movies? Drag out the microwave popcorn and go to town. Those DVDs can’t cost much to rent and maybe someone else will chip in on it with you.
Play on the web! The web is a virtually limitless land which will allow you to deeply explore any topic of interest, and participate in communities discussing those topics. You can also play games like Zuma or visit true time waster sites like HotorNot.com. Searching around online auctions like eBay may help you find deals while also being entertained by the prospects of bidding and winning.

Off-Campus Apartment Living

Sometimes an off-campus apartment is a choice and in other instances it just is a necessity. Living in your own digs brings its own array of money matters. Here are a few tips to help you stay in budget living off-campus.

Get a studio appartment or split rent with roommates.
Rent a place that will have all appliances provided. Bringing in your own or having to buy is a hassle. Think you can live without the microwave? You will likely wish you had one.
Beg your parents - they will feel a connection to you by letting you use their stuff or by buying you new stuff. The more they buy the less you have to.
Don’t spend a lot on décor and accessories. There are plenty of resources for creative decorating that won’t put you in the poor house.
- Wal-Mart is, of course, dirt cheap. FedEx furniture is cheaper. ;)
- Futons and bean bag chairs are always popular affordable choices.

Pay utility bills before they are due. Avoid late fees.
Save money on bills by keeping the A/C or heat turned down or off if possible.
Turn off lights; use the oven sparingly and take shorter showers. Electricity costs money. If you find an apartment where utilities may run on natural gas (stove, hot water heater) it’s generally more cost-efficient.
Living on an upper floor will typically keep you warmer in the winter, but it’ll get hotter in the summer. If you go to school in a region where winters are longer then upper floors are smart, otherwise live low.
If winters are cold and heat bills are high you can insulate your windows with plastic.

Shopping

Things must be bought at some point, but where, when and how you go about it can make all the difference to your cash flow. Remember, extras, frills, bells and whistles are the little things that really add up.

If you have to shop, make sure you patronize places that offer student discounts.
Shop for stuff you really need during the tax-free week - available in many regions of the country.
Shop early or late for Christmas and the holidays. There is no more stressful time for someone close to broke than the holidays. In fact, some shopping mavens stress that there is no better time to pick up Christmas presents than the day after Christmas! Need a quick Christmas gift for a friend you have yet to see? Buy last minute on clearance sales. Also, buy for next year. Savvy shoppers have no problem making this option one of the most cost efficient shopping days of their year.
Create Christmas and holiday gifts with your own two hands. The discount craft stores sell everything you need to make candles, soap, even beaded jewelry. If you can get a couple of crafty friends together you can all very affordably chip in for the materials and learn together.
Ask for practical items for Christmas or your birthday. No, it’s not much fun, but getting things you need saves you from spending the cash.
Get a few friends together to pitch in for the price of an annual membership at a place like Sam’s Club or Costco.
Buy in bulk. You’ll save money per unit for a pack of twelve bars of soap versus singles.
Save time and transportation money by shopping online. Make sure you choose an e-tailer with free shipping.
Save money in decorating the dorm room by shopping at discount stores and maybe a yard sale or two. The Pottery Barn dorm room may be great, but it’s definitely not on the bargain table.
Don’t shop hungry, and that goes for any kind of shopping. If you’re in the grocery store, you’ll grab more and spend more; if you’re somewhere else you’ll probably spend more than you planned getting something to eat. Carry a snack in your purse or backpack.
Learn how to shop for clothes at the consignment shop. Today’s second-hand is nothing like your mother’s thrift store. In fact, these places are regularly trafficked by college students and others for the great finds in name brand, “gently used” clothes and accessories.
While we’re on the subject of saving on clothes shopping, remember to make sure your fine consignment garments are washable versus “dry clean only.”

Transportation

Most of us have come to expect that we simply need to move around. Think foot power and you will already have taken steps to align yourself with a saving frame of mind.

Try to get an appartment which is close to campus.
Don’t take the car to campus. You will spend money on parking and gas, at the very least. Having no car will keep you closer to campus as well.
Walk, bike, roller blade, skateboard your way around town.
Public transportation is cheap, too.

Travel

At some point it’s likely you will have to decide the best and least expensive route from point A to point B. It may be national or international, but you always have a cheaper choice.

Save money by doing the least amount of traveling necessary. Road trips are great fun, but you will put out money for gas, accommodations, food, drink andentertainment. When it’s all said and done, your long weekend will smack your wallet.
Name your own price for a flight or accommodations, if you must travel, by using services such as Priceline. Factors such as current events and gas prices may cause travel prices to fluctuate.
Check prices for Amtrak or Greyhound versus air travel. Both companies offer student discounts.
A student travel discount card will get you nice discounts on accommodations, food, and transportation if you are traveling nationally or internationally:
- STA Travel
- International Student Identity Card, ISIC
Carpool home for the holidays. When everyone splits the cost of gas, it’s pretty darn cheap.
Nearly all money experts say “Skip Spring Break!” Some students even choose to engage in community service during spring break.

The Cost of Keeping in Touch

Communicating with friends and family can run you into steep monthly costs if you are not willing to think outside the box.

Join your parents’ family cell phone plan. It is usually much cheaper than a standalone account.
Refer to cell phone comparison sites that offer side-by-side data of plans from company to company. Save time and save money on your next cell phone plan:
Avoid text messaging. You can easily text your way to hundreds of dollars in extra fees. Also, because text messaging is charged both to the sender as well as the receiver, ask your friends to refrain from texting you, too. Make a phone call when you are able (and during your free minutes) or send an email instead. Some cell phone plans come bundled with a maximum number of free text messages. Know how many you can send or receive without being charged extra.
Use a pay-as-you-go cell phone plan. This will only work if you use your cell phone on a minimal basis.
Communicate via email, instant messangers, create a blog, share photos on Flickr, or invite friends to visit your MySpace site.
Use an inexpensive or free internet phone calling service. Once upon a time the sound quality and incidence of dropped digital data packets was high, but VoIP calls have come a long way, baby. Some families, especially those spread far and wide, even international, subscribe to an online conference service. Here everyone in the group may participate in a group meeting, share photos, keep current with goings on, etc.⁷
- Skype - eBay's VoIP service. Offers free incoming and outgoing calls in some areas.
- Vonage - VoIP service provider
- Google Talk - Google's voice enabled instant messaging service which allows you to leave voicemails
- Trillian & Gaim - instant messaging services that interface with most major IM services
- Facebook - Social networking site, very popular with the college generation
- Family and friend conference calls
If you are traveling, especially out of the country, catch up with friends and family before you leave, and check into the various international calling cards available.

Personal

We’ve included toiletries, personal grooming and laundry in this category - the annoying, so-not-fun expenses that are perhaps some of the most spendy.

Ladies, how ‘bout forego the salon nails for the year. Instead make it a girl’s night in and do each other’s nails. Same thing for waxes and facials.
You don’t have to let your hair grow to your knees, but you don’t have to choose the toniest “hair design” spot in town either. Shop around for a salon that offers student discounts. Have a cosmetology school nearby? They will charge much less for cuts, highlights and color in exchange for the use of your head. Also, funkier little salon/barbershops offer great services, for a fraction of the cost; you just need to be a bit adventurous.
Share the cost for personal toiletries. This works well if you share a room, apartment or suite with others and can agree on products that suit both or all: soap, shampoo, blow dryer, curling iron, hair spray, conditioner, package of razors, shaving cream, lotions, toothpaste, mouth wash, etc. We don't recommend sharing your tooth brush though ;)
Whether you share or not, it’s always a cost-saver to avoid high-end grooming products. You don’t really need the most expensive shampoo or facial scrub to keep yourself looking good. High-end products can run you between $10 and $20 per product. Buy affordable and quality products at much lower prices.
Shop for your personal items at a discount retailer. Money strategists suggest buying the “store brand” as a cost-saving alternative, as well.
Doing laundry costs money. A machine load of laundry costs at least a $1, and in most places a good bit more than that. Don’t drop your laundry at a service, stay and wash it yourself. Spend the time studying or decide to use laundry time to catch up on your favorite magazine or book. Maximize your laundry savings in the following ways:
- Bring your own detergent versus buying the single use from the machines.
- Buy discounted detergent or on sale only.
- Bring your own drink and/or snack versus buying from the vending machine.
- Fill the machines to capacity.
If you are totally outraged with the cost to wash and dry at the nearest laundry joint or your residence laundry machines, then shop for cheaper at another nearby residential building. Most have laundry rooms. Keep your ear to the ground for the best cost per load deal in the area and only wash when it’s necessary.⁸ You can always hand wash a few items to get you through to wash day.

Exercise

If you are already involved with an athletic program, you will have plenty of opportunity to travel off campus and socialize with other students. Meals will typically be covered during team travel, too. If you are on an athletic scholarship you will already have plenty of time scheduled for practice and games or competition to worry about money.

Join a club or intramural sport. It will gain you instant friends and offer no-cost exercise and socialization.
Buy an exercise video game. A console and exercise game together cost under $200 and offer weeks or months of fun. Who knew you could lose weight playing video games? Playstation 2 offers a video game called Kinetic - The Personal Fitness Trainer. And as if that wasn't good enough, why not give Dance Dance Revolution Mario Mix a try!
If you need music to help you have the motivation to exercise, iPods and similar devices can be bought for around $100. Many music fans also take advantage of low download costs or free downloadable music offers.
Ask someone to sponsor you for a marathon or other run. People do it all the time for charities. Turn paying for your education into a noble cause.
Enroll in an on-campus exercise class such as yoga, tai chi, kick-boxing or spinning. Exercise will keep you healthier and happier and will fill up time you might otherwise have spent spending money.
Feeling down and getting the urge to splurge? Instead go for a run, a bike ride, or a brisk walk. You’ll get some exercise-induced serotonin coursing through your brain and the feeling will cost you nothing.
Get a dog. While feeding them may seem expensive, they offer low cost company ready for a walk if you get lonely or might not exercise as much as you should. Dogs love exercise.

Make a Few Bucks

No one says you have to hold down a traditional part-time job, but there are tons of ways to make an extra buck or two while you’re in college.

We're not endorsing prostitution, but if you can give some of yourself by donating blood plasma, you can net an extra couple hundred dollars a month. But, be careful if you try combining this with alchohol. ;)
Volunteer for a medical study. Most do not require much time and you get paid!
Sell your expertise in a subject as a tutor, computer skills, music lessons.
Get a job in the food service industry. Chances are high that you can eat for free!
If you are a true subject matter expert why not create a website about your favorite topics? Many people make a few hundred to few thousand dollars a month from Google AdSense, by publishing relevant contextual ads on their websites.
Be your campus computer tech. Troubleshoot computer issues in exchange for a few bucks or a beer. Make yourself available in a pinch.
Solicit grad students for help with their dissertation research, proofreading, editing or document typing and formatting.
Don't forget to work extra and save up during the summer to make the school year more comfortable.
Offer a resume writing service. This can make you quite a bit of extra pocket money. But put it in savings.

Good luck! If you think “thrifty” we think you could possibly leave college with a little in your savings account to show for your hard work and efforts.

50 ways to save money....

2007-05-21T01:53:00.000-07:00

Richard Browning, This is Money

BRITISH credit card holders now owe an average of £2,200 on their plastic and with retailers reporting a slump in sales not seen for two decades, it is clear that shoppers are reining in their spending. In short, it's payback time.

To clear a debt of £2,200 on a card that attracts an interest rate of around 15% will take more than two years assuming a monthly repayment of £100. There are, however, plenty of simple ways to make significant savings on your regular spending that could clear the debt many times over in less than a year.

Here are This is Money's top 50 money-saving tips.

1. Change your attitude to your mortgage
The most expensive item you are ever likely to buy is your home. If you're not in the privileged position to pay cash, make sure the loan you use to finance it is the best available. For example, if you are paying your lender's full standard variable rate (SVR) you are probably paying hundreds of pounds a year more than you need to. There are thousands of deals to choose from and while it is vital to check the small print for hidden catches, this is a relatively easy way to save a lot of money. Remember: loyalty to your bank benefits your bank, not you. Even better, if you can afford to make overpayments on your mortgage, you'll clear your debt several years early and make massive savings. For example, if you borrow £100,000 at 6% over 25 years, you'll pay it back at £643 a month. The total charge for credit will be £93,000. But if you can overpay by £100 a month you'll clear the loan in less than 19 years, giving you 6 years of mortgage-free living and saving a staggering £25,000 in interest.
Saving: £1,000s
Links: This is Money mortgage finder; mortgage calculators; mortgage guides

2. Clear your credit card debt
One of the golden rules of financial planning is to clear your most expensive debts first, in other words your credit cards. OK, credit cards offer a convenient way to pay for goods and services but if you can't clear the balance every month, consider a low-cost loan as an alternative. Do the sums: a credit card debt (APR 15%) of £2,200 over three years will cost £545 in interest. A loan at 6% will cost £209. A saving of £336.
Saving: £100s
Link: This is Money credit card finder

3. Cut the cost of your fuel bills
As the global demand for power threatens to outstrip supply, prices are rising. But that doesn't mean you need to be ripped off. The domestic market for fuel is a competitive one and you can change supplier with a few clicks of the mouse. Your new supplier will take care of the formalities - you just pay less every month.
Saving: £100
Link: Slash your fuel bills with This is Money

4. Consider installing a water meter
We take our tap water for granted. And why not? The companies behind the supply exist to make a profit, we pay them to supply water and have every right to expect it to flow from our taps. But if it doesn't rain, supply runs dry and the price goes up. So you may want to consider the possibility of installing a meter. If you have a big home with few occupants you may be surprised to learn you could halve your annual bill.
Saving: £100s
Link: uSwitch.com water calculator

5. Cut your home phone bills
BT may seem to behave like a monopoly but it most definitely is not one. If you must use your phone there are scores of cheaper alternatives from cable companies that package your telephone, television and even broadband internet access to low-cost dial-up services that give you access to cheaper calls using your existing BT line.
Saving: £100
Link: Cut your phone bills with This is Money

6. Consider a pay-as-you go mobile
Ask yourself this: is your mobile phone absolutely necessary? If the answer is yes, then ask yourself whether you really need all those minutes and texts that come as part of your package. If you hand over £50 a month to your mobile phone company, that's £600 a year – or around £1,000 of your gross salary. But you can buy a pay-as-you-go phone for as little as £30 and only pay for the odd call as and when you need to.
Saving: £100s
Links: Easymobile; Orange

7. Make a shopping list
Food shopping forms a significant part of our monthly outgoings and the supermarket is where the bulk of the money is spent. Tesco takes £1 in every £8 spent by UK shoppers. But be warned, stores spend a small fortune studying ways of making us part with more of our money than we would otherwise intend to. Have you ever wondered why your favourite song is playing in the background as you navigate the aisles? Have you even noticed the background music? Possibly not, but you will have noticed at the checkout that the bill is often more than expected. To circumvent this, simply make a shopping list. Dig out the cookery books, plan a few meals and only buy what you need.
Saving: £10 a week = £520 a year
Link: Tesco

8. When was the last time you went to the market?
One way to beat the supermarkets - that is, to eat healthily for less - is to use your local market stall. Lower overheads should mean lower prices. At the time of writing, cherries were on sale in Asda for £2.99 for 400g, the equivalent at the local market was going for just over £1.
Saving: £100+

9. Consider own-brand goods
You can buy a tin of Asda own-brand baked beans for 14p and a loaf bread at Asda, Tesco or Sainsbury's for 19p. Enough said.
Saving: £100
Link: Asda, Sainsbury's

10. Don't buy designer labels
Celebrities are given expensive clothes to wear. You're not. At the end of the day, and let's face it you may only wear the outfit once, can you justify paying hundreds of pounds over the odds because a top designer has had his or her name sewn on the label? And can you honestly say you can tell the difference at a distance between a £600 designer bag and a £9.99 one from the market? Think about it.
Saving: £100s
Link: Prada - note the total lack of prices

11. Sell your clutter on eBay
Take this quick test: You're at home. Open a cupboard. Look inside. If it's full of clothes you haven't worn, or 'good ideas a the time' you haven't used, for, let's say, three years - you don't need them. So why not sell them to someone else who does? Ebay, the online auction house, has opened individual sellers to a world of buyers. And you can flog anything for the cost of a small commission. Tip: you may want to buy a few items first to build up your rating as a respectable eBayer before you start selling.
Income: Will depend on what's in your cupboard
Links: www.eBaybay.co.uk; 'I'm making money from eBay'

12. Use your talent to earn extra cash
Let's face it, if you're not a pop star by the time you reach your 20s you're never going to be. But you may be able to use your talent as a guitarist to teach other wannabes the rudiments of the 12-bar blues.
Income: It's not unreasonable to charge £20 an hour

13. Do DIY
We're a nation of obsessive DIYers and for around £100 you can take a course at your local adult education college to improve the skills needed to tackle most household repairs. If the college runs plumbing courses you could soon be on track to wiping out costly call-out charges and extra insurance policies once and for all.
Saving: £100+

14. Shop around for the cheapest household insurance
Unless you drive – car insurance is mandatory - you don't need insurance. But it's strongly advisable. Can you afford to foot the bill if your house burns down? Probably not. Similarly, can you afford to pay over the odds for the same policy available elsewhere because you can't be bothered to shop around? Possibly, but it's not advisable. The internet has made finding cheaper insurance easy and you can compare hundreds of policies in minutes.
Saving: £100s
Link: This is Money's insurance finder

15. Don't automatically renew annual travel insurance
If your annual holiday insurance policy is about to expire and you don't have a holiday booked, DON'T renew the policy. You're handing your money over to cover an eventuality that won't happen. You wouldn't have car insurance if you didn't own a car. Simply restart the cover again the next time you book a trip.
Saving: £50
Link: This is Money's travel insurance finder

16. Choose cheaper breakdown insurance
The breakdown sector is dominated by big names such as the AA and RAC. But being towed home if your car breaks down is just another form of insurance like any other and there are scores of cheaper alternatives.
Saving: Up to £100 a year
Link: This is Money's breakdown insurance finder

17. Are you paying too much for your life insurance?
We're living longer. As a result the cost of insuring the unthinkable is getting cheaper all the time. If you were sold a policy when you took out or mortgage you may have been under too much stress to shop around. You could be missing a trick.
Saving: £100
Link: This is Money's life insurance finder

18. Book early
Low-cost airlines have created a market in holidays for people prepared to fly to any destination provided it's cheap. You can benefit from this too. Just remember, only a few seats on each flight are sold at bargain-basement prices and once they're sold, the prices rise. So book early.
Saving: £100
Link: Skyscanner - the air fares comparison site

19. Book your own 'package' holiday online
The popularity of High Street travel agents is waning as more and more people warm to the benefits of researching and putting together their own holidays on the internet. If your holiday consists of flights, accommodation, transfers and possibly car hire, then take this test. Order a brochure from a leading holiday company and work out the price of your holiday including all the complicated supplements. Now go online and, starting with the flights, try to put the same package together.
Saving: £100+
Links: This is flights, HotelClub.co.uk, Shuttle Direct, Holiday Autos

20. Learn to say 'no'
It's easy to capitulate to the demands of a screaming child in a packed Woolworths on a Saturday afternoon. But don't do it. Similarly, how often does a 'swift half' after work turn into a £40 drinking session? Saying 'no' a few times a year will do wonders for your bank account.
Saving: £100

23. Don't pay full price for theatre or theme park tickets
If you are prepared to tolerate the unwieldy website and hit-and-miss customer service, lastminute.com regularly boasts some amazing deals for London's theatres and the nation's theme parks. At the time of writing you can see top West End show The Producers plus a two-course meal for less than £20 a head, a saving of £60 per person, and tickets for Chessington World of Adventures cost from £12, a saving of nearly £50 for a day out for a family of four.
Saving: £100s
Link: www.lastminute.com

24. Beat the ticket touts
Ticket touts earn their living by getting hold of tickets that are 'otherwise unavailable'. Well, here's the news: they are available to everyone when they first go on sale. You just need to know when they go on sale. Simply sign up to for the free ticket alert newsletters from the main agents to ensure that you're first in the queue.
Saving: £100s
Links: Ticketline; Ticketmaster

25. Stop trying to keep up with the Joneses
Trying to keep up appearances is little more than a costly illness. Remember, you cannot judge someone by what they have because you don't know how they got it. Chances are they're in more debt than you are.
Saving: £1,000s
Link: This is Money's guide to getting out of debt

26. Trade down your car
So, you bought an American sports utility vehicle (SUV) that nets 15 miles to the gallon on a whim. Obviously we're all very impressed – especially by the personalised number plate. But can you honestly justify the ongoing expense? If not, get rid of it. Then visit a car supermarket, where you can choose from thousands of cars at knock-down prices. If you're a true money saver, consider an ex-rental model which you can pick up for a fraction of the cost of a new one.
Saving: £1,000s
Links: Daily Mail find a car service; Cargiant

27. Ask yourself: do I really need this?
Imagine the scenario. It's lunchtime and you've got an hour to kill. You find yourself in a department store and there's a sale on. You pick up a beautifully packaged selection of barbecue tools and associated garden paraphernalia. And it's half price. Now, stop! Ask yourself: Do I really need this? Exactly. Now, put it down and walk away.
Saving: £100
Link: This is Money's money savers' guides

28. Walk/cycle to the station/work
It maybe a bit of hippie notion to many people but it's free.
Saving: £100
Link: Cycle Campaign Network

29. Get off the station before your usual stop and walk
We may be creatures of habit but isn't it worth tinkering with the routine if it's costing more than £50 a month in unnecessary fares?
Saving: £100
Link: Living Streets

30. Cut down your drinking
A few beers after work a few nights a week is a financially debilitating state of affairs. Set limits and stick to them.
Saving: £100s
Link: Calculator: Pleasures v treasures

31. Pack up smoking
Never mind the health implications, the guilt and the smell, your 20-a-day habit is costing you nearly £2,000 a year. Pack it in.
Saving: Nearly £2,000
Link: Givingupsmoking.co.uk

32. Cancel your gym membership
If you pay your £40 a month by direct debit and you use the gym three times a week, great. If not, cancel your membership immediately. You'll soon save enough to buy your own bike and, if you're so inclined, a rowing machine. Consider running home from work three times a week. It's free.
Saving: £100s
Link: Compare prices for rowing machines on Kelkoo

33. Use your library
The local library is a mecca for the money saver. You'll never need to buy another cookbook, guidebook or lifestyle manual again and if you can bear to wait a few weeks in the queue for the latest blockbuster, you never need to buy books again. CDs and videos are great value too.
Saving: £100
Link: www.whichbook.net - find a book and check if it's available at your local library

34. The three-for-two trick
Now, there's a lot to be said for buy-one-get-one-free deals, especially if they pass the 'Do I really need this?' test. Then there's three-for-twos; a particularly cynical way of stores to entice shoppers to buy an extra item they would not otherwise buy. The 'offer' is always priced into the deal so do your sums and shop around.
Saving: It's a principle at stake here
Link: Discuss deals and scams with other readers

35. Buy clothes and presents in the sales
So you need a new suit and the one you like comes in at a cool £300. Wait! The chances are that you can pick it up in the sale – and there's always a sale just around the corner – for £150. The same applies for birthday and Christmas presents. Buy in bulk in the sales and you not only save money, but you enjoy stress-free pre-Christmases and no last-minute birthday worries.
Saving: £100s

37. The Christmas lottery
Instead of trying to buy a present for every relative in your family, consider getting together beforehand and picking one name from the hat. You then buy one thoughtful gift for that one person rather than attempting to please everyone at considerable cost. Everyone gets a present, everyone saves money.
Saving: £100

38. The National Lottery – it won't be you!
The odds of winning the Lotto jackpot are stacked 14m to 1 against each ticket. Some highly organised syndicates buy 14,000 tickets a week, which reduces the odds to 1,000 to 1 - but that's no guarantee of a win. For the rest of us, the difference to the odds between buying, say, 10 tickets and one is so insignificant that you should limit yourself to the one and save the extra money in a Cash mini Isa.
Saving: £100
Link: Are you sitting on a winning ticket?

39. Use your Isa allowances
If you're not already aware, you can save up to £3,000 a year in a tax-free savings account called an Isa (for the more financially savvy there's also a stocks and shares Isa). It means you don't pay any tax on the interest accrued so, if you have spare cash in your current account, this is the difference between earning next to no interest and up to £150 a year.
Saving: £100+
Link: Best Isa rates

40. Claim your benefits and tax credits
There was once a certain stigma in Britain attached to claiming benefits. Well, not any more. The Government has put benefits at the heart of the family budget and it's your money so make sure you're claiming it. That includes Child Benefit, Working Tax Credit, Child Tax Credit and other employee-related tax benefits.
Saving: £100s
Link: Confused? Ask a This is Money Expert

41. How saving £50 a month now can save you £120 next year
Do you pay your insurance premiums by monthly instalments? If you do, then consider this: you are probably being charged a premium of between 15% and 20% for the privilege. In other words, if your home and car insurance bill for the year is £600, you're paying up to £120 a year in interest by paying monthly. If you are in a position this year to save up for next year's premiums in advance, you can save money by paying the whole lot in one go.
Saving: £100+
Link: This is Money's best savings rates

42. Do you need all those TV channels?
Britain is switching to digital-only television and time is running out for you to choose your new digital TV provider. The choice is already bewildering and with telephone-based services now being launched it's going to get more complicated. Packages range from full the monty, including every sports and movie channel costing around £50 a month, down to Freeview, which is free. Choose wisely.
Saving: £100+

43. Bin the ready meals
If TV chefs such as Ainsley Harriott can knock up a meal from a bag of random groceries including an aubergine and a packet of sultanas – so can you. Ready meals may be convenient, but preparing your own food saves money. A visit to your library will reveal scores of books dedicated to cooking proper meals in minutes.
Saving: £100+

44. Take up a money-saving hobby
Hobbies not only open your mind to new experiences but they also take up your time – important if you would otherwise spend it in the pub drinking away your hard-earned money. If a painting takes 20 hours to complete, and you normally get through a pint an hour. That's a saving of a least 40 quid a picture. Think about it. Get painting. Go fishing.
Saving: £100+

45. Avoid the payment protection racket
Banks and other lenders are selling expensive insurance policies to cover loan repayments to people who don't need it. Don't be a victim of the hard-sell.
Saving: £100

46. Avoid extended warranties
Electrical goods are more reliable than ever. If your new radio won't last three years perhaps it's not worth buying in the first place. Think about it: how many times has your fridge broken down in the last five years? And do you really need the hassle of claiming for repairs to a £15 toaster?
Saving: £100
Link: Read our guide to extended warranties

47. Shop online
The internet is gradually taking over. Online grocery shopping is getting better all the time and there are plenty of comparison websites to help find the best prices for bigger items. Give it a try, unless of course you like fighting your way through supermarket crowds.
Saving: Your sanity
Links: Online grocery service rated; PriceRunner - price comparison site

48. The Citizen's Advice Bureau is your friend
If your debts are out of control please seek help immediately from your local CAB – their advisers can help you work out a sensible strategy to get you back on your feet.
Saving: It could save your life
Link: Find your local CAB

49. Have I missed any money-saving ideas?
You can now add your comments to the Money Saving Overflow
Link: Find out more at 50 more ways to save money

50. Save this article or send it to a friend
Use the links at the bottom of the page to send these money-saving tips to a friend or save it for yourself for later.

How to Save Money

2007-05-21T01:44:00.000-07:00

Whether you want to go on a vacation, buy a house, or enjoy a comfortable retirement, you’ve got to learn to save money. Unfortunately, many of us tend to spend whatever we earn or more. We know savings are important for unexpected emergencies or major life changes, but we just can’t seem to put some cash away for a rainy day. Want to stop living from paycheck to paycheck? Read on and start saving today.

Steps

Don't buy things you do not need. Sure, it's easier said than done, but sometimes you might want to forgo that extra bottle of soda or bag of candy at the supermarket exit, or anything else that won't benefit you in the long run.
Figure out what you need to save for and how much you need to save. For short-term goals, this is easy. If you want to buy a video game, find out how much it costs; if you want to buy a house, determine how much of a down payment you’ll need. For long-term goals, such as retirement, you’ll need to do a lot more planning (figuring out how much money you’ll need to live comfortably for 20 or 30 years after you stop working), and you’ll also need to figure out how investments will help you achieve your goals.
Set savings goals. Once you determine how much you need to save, establish a timeframe (i.e. “I want to be able to buy a house two years from today.”) Set a particular date for accomplishing shorter-term goals, and make sure the goal is attainable within that time period. If it’s not attainable, you’ll just get discouraged.
Figure out how much you’ll have to save per week, per month, or per paycheck to attain each of your savings goals. Take each thing you want to save for and figure out how much you need to start saving now. For most savings goals, it’s best to save the same amount each period. For example, if you want to put a $20,000 down payment on a home in 36 months (three years), you’ll need to save about $550 per month every month.
Add together the installment amounts (monthly, weekly, or per paycheck) for all your savings goals. Can you afford to save this total each period? If so, great; if not, proceed to the next step.
Pay yourself first. Savings should be your priority, so don’t just say that you’ll save whatever’s left over at the end of the month. Deposit savings into an account (or your piggybank) as soon as you get paid.
Keep a record of your expenses. Write down everything you spend your money on for a couple weeks or a month. Be as detailed as possible, and try not to leave out small purchases.
See where you can trim your expenses. You’ll probably be surprised when you look back at your record of expenses: $300 on ice cream, $100 on parking tickets? You’ll likely see some obvious cuts you can make. Depending on how much you need to save, however, you may need to make some difficult decisions. Think about your priorities, and make cuts you can live with.
Reassess your savings goals. If there’s absolutely no way you can fit all your savings goals into your budget, take a look at what you’re saving for and cut the less important things or adjust the timeframe. Maybe you need to put off buying a new car for another year, or maybe you don’t really need a big-screen TV that badly.
Make a budget. Once you’ve managed to balance your earnings with your savings goals and spending, write down a budget so you’ll know each month or each paycheck how much you can spend on any given thing or category of things. Try to leave a little room for minor unexpected expenses.
Stick to your budget. A budget won’t do you any good if you don’t follow it religiously. Build some self-discipline, and remember why you’re on a budget in the first place.
Open an interest-bearing savings account. It’s a lot easier to keep track of your savings if you have them separate from your spending money. You can also usually get better interest on savings accounts than on checking accounts (if you get interest on your checking account at all). Consider higher-interest options such as CDs or money-market accounts for longer savings goals. You can also open an online savings account with one of the companies that offer them. Look around for the best savings interest rate and try to find one that adjusts its rate as the federal interest rate changes. You can then set up an automatic transfer from your checking account to your high interest savings account. Many employers allow you to deduct savings from your paycheck. The money is directly deposited in your savings account so you never even see it on your paycheck. You can also have investments for retirement taken directly out of your pay, and the taxes may be deferred with this option. If you typicaly keep a large balance in your checking account, consider moving most of that money into a linked savings account. Keep the money in savings until it is time to pay bills, then transfer enough from savings into checking to cover your bills. Make sure you check with your bank to see what the minimum balance requirements are for your checking account so you don't get hit with additional fees.
Don't use your credit cards. This is one of the most effective ways to reduce spending. Use cash for as many purchases as possible - you'll be more conscious of what you are spending your money on.
Kill your debt. Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can be easily re-purposed to savings.

Tips

If your savings time frame is very long, such as for retirement, you may want to structure your monthly savings so that they grow larger later in life when you will (hopefully) have more income coming in. On the other hand, money invested while you are young will have more time to grow. Start when you are in your teens!
Consider setting up an automatic weekly or monthly transfer from your checking account to your savings account. With many banks, this can be accomplished online.
Read the Wiki on how to ladder your Certificate of Deposits (CDs) or find out at www.bankrate.com.
Make sure you don't buy unnecessary things. For example, lets say you buy an exercise machine that's on "sale". You might think its a good deal, but after a few weeks, you will most probably just leave it sitting in the corner.
Stop buying newspapers, movies, books and magazines. Borrow from the public library.
Cook more, eat out less. Use less salt, less sugar and less oil when cooking to stay healthy and avoid health issues and medical bills.
If unexpected expenses cause you to deviate from your budget from time to time, cut unnecessary expenses before you cut money from your savings goals. Other than the bare necessities, your savings goals should be your top priority.
In this day and age, many of us have cars, so saving money on gas can contribute to your effort considerably. Consider getting rid of the car altogether if you can. Another option is to avoid maintaining multiple cars. Failing that, drive less and shop around for insurance even before you buy a car. See "How to save Gas".
If unexpected circumstances render you unable to meet your savings goals, reassess them and figure out which ones you can delay or cut out. Get back on your program as soon as you can.
For very important or very large savings goals (such as a down payment on a house or saving for your kids’ college tuition), consider opening up a separate account. You’ll be able to keep better track of that particular goal, and you’ll be less tempted to dip into it.
If you receive unexpected cash, put all or most of it into your savings, but continue to set aside your regularly scheduled amount as well. You’ll simply reach your savings goals sooner.
As you satisfy the payment of a car loan, or your mortgage, you will have extra money. Set aside that money into savings. This way, the money you used to pay to somebody else now goes to you.
Use a piggy bank or jar for your coins. Coins and change may look insignificant but when accumulated over time they can help you save. Some banks now offer free coin counting machines. When you redeem your coins, ask to be paid by check so you won't be tempted to spend your newfound cash.
Don't save money solely for the purpose of spending. Setting some amount aside for emergencies can keep you out of a lot of trouble. Decide on some number of months' worth of salary as a cushion, and make a point to replace this stash anytime you must use it.
Interest on debts, especially high interest rates on credit cards, is a huge, unnecessary expense. If you are in debt, pay off your loans right away to get out from under that debt as fast as you can.
One option to get started saving is to find out what your take-home pay per hour is (net pay divided by hours worked) and save the "change" from each hour. For example, if you worked 25 hours and your check is $164, you would be making $6.56 "take-home" per hour. Save $14 that paycheck, and you have saved all the "change" per hour. If your hourly take home pay is an even number somehow (like $6) then just save $1 or 75 cents per hour.
If you need to have credit cards but you don't want the temptation of having them available to use day-to-day, there is this method: put the credit card in a tupperware box with water and store in your freezer. Thaw your card only when you really need to use it. Your card will not be damaged by freezing and forcing yourself to use cash will greatly help your budgeting.
Save pop cans when you get done drinking them and recycle. Some places pay money for cans to recycle.
Reduce your long distance phone bills. There are a lot of options for phone service these days, including internet-based providers. Shop around and see if you could save money.

Warnings

Never loan cash you cannot afford to lose.
Never borrow money that you cannot repay.
Do not go out "window shopping" with any money on you. You will only be tempted to spend money you cannot afford to lose. Shop instead, only to a predetermined shopping list.
When window shopping, learn how to talk yourself out of buying. Nitpick and scrutinize to get past your first impression of a tempting item. In very tempting situations, give it a whole day to think on. Most desires will fade in attraction when you're not under pressure.
Be sure to keep track of automatic deductions from your paycheck and any automatic transfers you set up. Sometimes mistakes happen, and if you’re not paying attention, you might not get all your money.
Don't buy something that would put you in debt or is unnessary.

Things You'll Need

Jar or Piggy bank
will power
an idea of how much you want to save
A great place to lock up your money

Save money

2007-05-19T02:44:00.000-07:00

I keep a plastic jug on my bed, right next to the pillow, and I put all my change and small bills in it everynight. I just started about a week ago, and already have saved 45 dollars(US). I hope I can keep it up!

well, I’m working on it. I’m putting at least 100 bucks a month into my savings account and I put all of my change into my piggy bank. The piggy bank is actually so full right now that I can’t fit anymore change in it. Time to take it to the bank. Oh, and I have to find a way not to use my savings account money. I mean I only use it for emergencies, but still, I don’t seem to get ahead as much as I’d like to.

I have no idea where my money goes most of the time. So a reminder to myself in about 6 months will be to have at least 2 Grand to my name…IF that. My standards certainly aren’t high.

My husband and I are about to change careers and we need to save some serious money! There’s going to be a break where one of us may not bring in any money. We’re going to try and cut down on eating out so much and making the most out of leftovers and cooking more. I’m cleaning up the house this weekend and gathering up all the junk to sell during a garage sale. Since the kids are almost done with school this year, it’ll free up some money that we would spend on their hot lunches. I may open up a separate account along with the savings and checking and make it a “rainy day” fund, but don’t touch it at all. Nothing’s ever saved in the savings account! :)

i have recently put my mind into holiday action. no wait. its people visiting. they are very important ppl to me. its a neccessary trip.
NOW LETS HOPE LIKE A MF THAT I CAN GET MY MONEY TOGETHER TO DO THIS!!

I have just passed the half way mark for my saving goal
feels good :-)

Although I haven’t been saving as much as I should, for the past few months I’ve been doing automatic deduction into my savings account from my credit union. At first I felt the dent in my take-home pay, but now I just budget around it and I don’t even notice it. I am going to up my deduction as soon as I pay off my credit card…next week!!!!

Ok situation up to date. I had £5000 and spent it all on fixing my beloved car. It was supposed to be for a house deposit. So I have set up a new budget and started over. (New budget has seperate saving area for car repairs).
So far on the new budget I have saved £941 and I have been saving since february.
It will be interesting to see how long it will take to get the 5 grand saved up again.

I’ve been sticking 10% of every paycheck into my emergency fund and will keep doing this until I reach 5000 at least. Another 10% I spread out over sub-accounts for cat bills, car stuff, vacation, home repairs/improvement, home down payment savings and one for random stuff like when an appliance dies or a gift is needed.
This year I set up a retirement account and another 10% goes to that, above and beyond the state run pension plan.
So far, this system has enabled me to cover every emergency that has happened in almost a year, without having to touch any credit card. It’s nice to have this particular source of stress mitigated.

i really really need to make some serious savings! i have a few places of employment now, and its just basic cash in hand work so that means that i know exactly where my money is. but it makes it so much easier to spend it all! just as long as i can put more than half of the weeks earnings into my savings account, i should be ok. i have a few (expensive but neccesary) things to buy in the near future, as well as a few transport tickets, money to pay back to the parents, and of course money for the overseas job. gah so much money to save, and not enoguh coming my way!!

66 WAYS TO SAVE MONEY

2007-05-19T02:42:00.000-07:00

For most kinds of purchases, you can get valuable advice and comparisons on the Internet. Ask a librarian or friends which Internet sites they think are helpful, or you can use a search engine like Google or Yahoo. Be aware that information you find is often biased. At many websites, the only products or sellers listed are ones that pay to advertise. Before buying anything on the Internet, check several websites and make sure you deal with reputable dealers.

Airline Fares

1. Compare low-cost carriers with major carriers that fly to your destination. Remember, the best fares may not be out of the airport closest to you.

2. You may save by including a Saturday evening stay-over or by purchasing the ticket at least 14 days in advance. Ask which days of the week and times of the day have the lowest fare.

3. Even if you are using a travel agent, check airline and Internet travel sites, and look for special deals. If you call, always ask for the lowest fare to your destination.

Car Rental

4. Since car rental rates can vary greatly, compare total price (including taxes and surcharge) and take advantage of any special offers and membership discounts.

5. Rental car companies offer various insurance and waiver options. Check with your automobile insurance agent and credit card company in advance to avoid duplicating any coverage you may already have.

New Cars

6. You can save thousands of dollars over the lifetime of a car by selecting a model that combines a low purchase price with low depreciation, financing, insurance, gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that contain this information.

7. Having selected a model and options you are interested in, you can save hundreds of dollars by comparison shopping. Get price quotes from several dealers (over the phone or Internet) and let each know you are contacting the others.

8. Remember there is no "cooling off" period on new car sales. Once you have signed a contract, you are obligated to buy the car.

Used Cars

9. 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 which can be found at many libraries, banks, and credit unions.
Have a mechanic you trust check the car, especially if the car is sold "as is."

10. 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.

Auto Leasing

11. Don't decide to lease a car just because the payments are lower than on a traditional auto loan. The leasing payments are lower because you don't actually own the car.

12. 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. A valuable source of information about auto leasing can be found in Keys to Vehicle Leasing: A Consumer Guide, which is published by the Federal Reserve Board and Federal Trade Commission.

Gasoline

13. 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.

14. You can save up to $100 a year on gas by keeping your engine tuned and your tires inflated to their proper pressure.

Car Repairs

15. 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.

Auto Insurance

16. 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.

17. 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. This can save you hundreds of dollars on insurance premiums.

18. Make certain that your new policy is in effect before dropping your old one.

Homeowner/Renter Insurance

19. 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.

20. Make certain you purchase enough coverage to replace the house and its contents. "Replacement" on the house means rebuilding to its current condition.

21. Make certain your new policy is in effect before dropping your old one.

Life Insurance

22. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.

23. 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.

24. Check the National Association of Insurance Commissioners website (www.naic.org/cis) or your local library for information on the financial soundness of insurance companies.

Checking Accounts and Debit Cards

25. You can save more than $100 a year in fees by selecting a free checking account or one with no minimum balance requirement. Request a complete list of fees that are charged on these accounts, including ATM and debit card fees.

26. See if you can get free or lower cost checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.

Savings Products

27. Before opening a savings account, find out whether the account is insured by the federal government (FDIC for banks or NCUA for credit unions). Financial institutions offer a number of products, such as mutual funds and annuities, which are not insured.

28. Once you select a type of savings account, use the telephone, newspaper, and Internet to compare rates and fees offered by different financial institutions-including those outside your city. These rates can vary a lot and, over time, can significantly affect interest earnings.

29. 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).

Credit Cards

30. To avoid late payment fees and possible interest rate increases on your credit cards, make sure you send in your payment a week to ten days before the statement due date. Late payments on one card can increase fees and interest rates on other cards.

31. You can avoid interest charges, which may be considerable, by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can. Try to shift the remaining balance to a credit card with a lower annual percentage rate (APR). You can find listings of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers.

32. Be aware that credit cards with rebates, cash back, travel awards, or other perks may carry higher rates or fees.

Auto Loans

33. To save as much as several thousand dollars in finance charges, pay for the car in cash or make a large down payment. Always get the shortest term loan possible as this will lower your interest rate.

34. Make certain to get a rate quote (or pre-approved loan) from your bank or credit union before seeking dealer financing. You can save as much as $1000 in finance charges by shopping for the cheapest loan.

35. Make certain to consider the dollar difference between low-rate financing and a lower sale price. Remember that getting zero or low-rate financing from a dealer may prevent you from getting the rebate.

First Mortgage Loans

36. Although your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortest-term mortgage you can afford. For each $100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed rate mortgage than you would on a 30-year fixed rate mortgage.

37. You can save thousands of dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year $100,000 fixed-rate mortgage, just lowering the APR from 7% to 6.5% can save you more than $5,000 in interest charges over the life of the loan, and paying two points instead of three would save you an additional $1,000.

38. Check the Internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates (APRs), points, and fees. If you choose a mortgage broker, make certain to compare their offers with those of direct lenders.

39. Be aware that the interest rate on most adjustable rate mortgages (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of dollars a month, so ask the lender what the highest possible monthly payment might be.

Mortgage Refinancing

40. Consider refinancing your mortgage if you can get a rate that is lower than your existing mortgage rate and plan to keep the new mortgage for at least several years. 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.

Home Equity Loans

41. Be cautious in taking out home equity loans. The loans reduce or may even eliminate the equity that you have built up in your home. (Equity is the cash you would have if you sold your house and paid off your mortgage loans.) If you are unable to make payments on home equity loans, you could lose your home.

42. Compare home equity loans offered by at least four reputable lending institutions. Consider the interest rate on the loan and the annual percentage rate (APR), which includes other costs, such as origination fees, discount points, mortgage insurance, and other fees. Ask if the rate changes, and if so, how it is calculated and how frequently, as this will affect the amount of your monthly payments.

Home Purchase

43. You can often negotiate a lower sale price by employing a buyer broker who works for you, not the seller. If the buyer broker or the broker's firm also lists properties, there may be a conflict of interest, so ask them to tell you if they are showing you a property that they have listed.

44. Do not purchase any house until it has been examined by a home inspector that you selected.

Renting a Place to Live

45. 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.

46. Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.

Home Improvement

47. 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.

48. Do not sign any contract that requires full payment before satisfactory completion of the work.

Major Appliances

49. Consult Consumer Reports, available in most public libraries, for information about specific appliance brands and models and how to evaluate them, including energy use. There are often great price and quality differences. Look for the yellow Energy Guide label on products, and especially for products that have earned the government's ENERGY STAR®, which can save up to 50% in energy use.

50. Once you've selected a specific brand and model, check the Internet or yellow pages to learn what stores carry the brand. Call at least four of these stores to compare prices and ask if that's the lowest price they can offer you. This comparison shopping can save you as much as $100 or more.

Heating and Cooling

51. A home energy audit can identify ways to save up to hundreds of dollars a year on home heating (and air conditioning). Ask your electric or gas utility if they audit homes for free or for a reasonable charge. If they do not, ask them to refer you to a qualified professional.

52. Enrolling in load management programs and off-hour rate programs offered by your electric utility may save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs.

Telephone Service

53. 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 which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package that offers local, local toll and long distance, and possibly other services, if you heavily use all the services in the bundle.

54. Check your phone bill to see if you have optional calling features or additional services, such as inside wire maintenance, that you don't need. Each option you drop could save you $40 or more each year.

55. If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use dial around services such as 10-10 numbers or prepaid phone cards for your calls. When shopping for dial around service, look for fees, call minimum, and per minute rates. Treat prepaid cards as cash and find out if there is an expiration date.

56. If you use a cell phone, make sure your calling plan matches the pattern of calls you typically make. Understand peak calling periods, area coverage, roaming, and termination charges. Contracts offered by most carriers will provide you with a trial period of 14 days or more. Use that time to make sure the service provides coverage in all the places you will be using the phone (home, work etc.). Prepaid wireless plans tend to have higher per minute rates and fees but may be a better option if you use the phone only occasionally.

57. Before making calls when away from home, compare per minute rates and surcharges for cell phones, prepaid phone cards, and calling card plans to find how to save the most money.

58. Dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra. To save money on information calls, look the number up on the Internet, or in the directory.

Food Purchased at Markets

59. You can save hundreds of dollars a year by shopping at lower-priced food stores. Convenience stores often charge the highest price.

60. You will spend less on food if you shop with a list, take advantage of sales, and purchase basic ingredients, rather than pre-packaged components or ready-made items.

61. 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.

Prescription Drugs

62. Since brand name drugs are usually much more expensive than their generic equivalents, ask your physician and pharmacist if a less expensive generic or an over the counter alternative is available.

63. Since pharmacies may charge widely different prices for the same medicine, call several. When taking a drug for a long time, also consider calling mail-order pharmacies, which often charge lower prices.

Funeral Arrangements

64. Plan ahead, making your wishes known about your funeral, memorial, or burial arrangements in writing to save your family or estate unnecessary expense.

65. For information about the least costly options, which may save you several thousand dollars, contact a local Funeral Consumer Alliance or memorial society, which are usually listed in the Yellow Pages under funeral services.

66. Before selecting a funeral home, call several and ask for prices of specific goods and services, or visit them to obtain an itemized price list. You are entitled to this information by law.

Debt Consolidation Scams to Avoid

2007-05-18T20:48:00.000-07:00

“Debt Consolidation” offers readers information about all types of debt consolidation including low interest secured and unsecured bank loans, credit card consolidation, mortgages, etc. It weighs the pros and cons of debt consolidation for those with bad credit and contrasts the advantages and disadvantages of debt negotiation. It is useful for both consumers and small businesses.

Although the Internet has revolutionized communications and provided many hitherto unknown opportunities, it has also provided plentiful opportunities for scam artists to prey on the unsuspecting. This is no less true in the area of debt consolidation. Following are a few debt consolidation scams to avoid:

1. Debt Consolidation Scam #1: Debt Consolidation Through Free Government Grants

There are many organizations out there that promise information about “free government grants”, which the government is supposedly giving away like candy, and the money from which you can use any way you please, including debt consolidation. Yeah, right. Perhaps as a donation to the [Insert Your Name Here] Lifestyle Enhancement Fund? Sure, the US government gives away a lot of grant money, but not for personal debt consolidation. It’s not particularly easy to qualify for these grants, there are strings attached to the use of the money, and if you use it to consolidate your bills you might just earn yourself a free vacation at the Club Fed.

2. Debt Consolidation Scam #2: “No Repayment Necessary”

This one should be a no-brainer, but here’s how it goes: “US banking laws prohibit the charging of interest, and this has been supported by several Supreme Court decisions. So, borrow the money, refuse to pay it back, and then hire a lawyer to get you out of repayment since they had no right to lend you the money in the first place. We’ll tell you how (for a fee).” If you fall for this debt consolidation scam then I’ve got some land in Arizona I’d like to sell you. By the way, even if US banking law what these guys said it was, you’d still have to pay back the principal.

3. Debt Consolidation Scam #3: “Free Debt Consolidation Services”

So how is this company making money? Then again, cheap debt consolidation services are not necessarily a scam, although it would pay to be wary of anything that sounds too good to be true.
In a nutshell, most (but not all) debt consolidation scams are transparent, designed to take advantage of someone in great financial distress – desperation seems to reduce the IQ by about 50% in some people.
Don’t be one of them.

Please refer to the “Debt Consolidation” site for your financial planning needs.

Friday, March 23, 2007

Free Debt Consolidation Quotes - What You Need to Know

“Debt Consolidation” offers readers information about all types of debt consolidation including low interest secured and unsecured bank loans, credit card consolidation, mortgages, etc. It weighs the pros and cons of debt consolidation for those with bad credit and contrasts the advantages and disadvantages of debt negotiation. It is useful for both consumers and small businesses.

Are your monthly bills approaching the size of your paycheck? If you’re having trouble making your debt payments as they come due, there is a way out. Of course, almost everyone has heard of debt consolidation. In case you haven’t, debt consolidation is a single loan that you use to pay off all your creditors. This will help you in several ways:1. It gets the dogs off your back – temporarily at least. A different dog will come back howling if you fail to timely repay your debt consolidation loan.2. The monthly payment on your debt consolidation loan total should be lower than the total monthly payments on your current bills. 3. The interest rate on your debt consolidation should be lower than the amount of interest you pay on your existing debt. But don’t forget to count the late fees you’re probably paying on your current debts.The first step is to get a debt consolidation quote – free debt consolidation quotes are available both on and off the Internet. Be careful not to get scammed, though, because there are many animals lurking in the debt consolidation jungle – banks, credit unions, credit repair firms, specialized debt consolidation firms, and even Lefty the Loan Shark. Look around at all the options and get free debt consolidation quotes from several of them. Don’t just accept the lowest debt consolidation quote you can get – quality counts. Get all of your debt consolidation quotes in writing, and consider the following:

1. Make sure they offer free debt consolidation quotes – there’s no sense paying for what’s widely available free of charge.

2. Check out their reputation – don’t even consider a debt consolidation company that has a website but no physical address or has not joined the Better Business Bureau. If possible, visit them in person. If you can’t, then do insist on at least a live telephone conversation with one of their debt consolidation counselors.

3. Find a debt consolidator that will negotiate with your creditors so that you end up with a lower debt consolidation loan principal.

4. Avoid debt consolidation firms that have representatives sporting Popeye forearms and prominent tattoos – enforcement can be a bit on the aggressive side with these outfits (wink!).Once you have checked out each institution that has offered you a free debt consolidation quote, you can select the one you want to go with after grading them using the foregoing criteria.

Please refer to the “Debt Consolidation” site for your financial planning needs.

The Basics Your 3 worst debt consolidation moves

2007-05-18T20:30:00.000-07:00

If you're up to your eyeballs, the fantasy of debt consolidation can suck you right in. Watch out for the slippery side of consolidation loans, balance transfers and other 'easy fixes.'

By MP Dunleavey

The phrase "debt consolidation" has always had a magical ring to me.

As if somehow, someone would have the power to mush my debt into one neat little package, which by some incredible financial alchemy would also then shrink the debt itself -- and I'd only owe a hundred bucks or so.

I know I'm not the only idiot who's had this fantasy, because an entire industry has sprung up to support it: The Debt Consolidation Industry and Covert Sting Operation. Every day, I get at least one piece of regular mail offering me low-interest balance-transfer deals for credit-card debt, or arm-twisting e-mail from unknown credit organizations that scream things like:

"DEBT RELIEF IS JUST A CLICK AWAY!"
"CUT YOUR MINIMUM MONTHLY PAYMENTS BY 50% OR MORE!"
"SLASH YOUR INTEREST RATES DOWN TO ZERO!"

These promises are incredibly alluring to anyone who is caught in the quicksand of having too much consumer debt, and who will believe anything, do anything -- click her ruby slippers (bought on sale for just $400!) three times -- to make it go away. But before you start skipping down some financial yellow brick road to see the Wizard of Debt Consolidation, remember this: Watch out for those flying monkeys.

Three bad debt-consolidation moves:

1) The Hard-Money Loan
"The biggest myth about debt-consolidation loans is that they're easy to get," says Scott Kays, president of Kays Financial Advisory Corp. and author of "Achieving Your Financial Potential." If you really need a loan, it's probably because you've already missed a few payments and your credit history has more dings in it than a '74 Ford Pinto.

And that's the problem. Kays says that if you are a credit risk, the consolidator may entice you with promises of an easy-does-it loan, and end up charging you higher interest rates than you're paying now -- as high as 21% or 22%. "Your monthly payment may be lower" with one of these loans, "but you'll end up paying more," says Kays.

2) Debt Consolidators Who Promise to Take Care of Everything
This is the fairy godmother fantasy. This Nice Big Debt Consolidation company comes along and swears they'll make your life soooo much easier. They'll negotiate lower interest rates, reduce your monthly payments -- and all you have to do is make "one EZ payment."

In reality, many debt consolidators build in a fee as part of the monthly payment you make to them. It's usually about 10% of the payment (i.e. about $40 on a $400 monthly payment). They pass along your payments to the creditor -- some debit directly from your checking account -- and get back a 10% to 15% slice that the relieved creditor is only too happy to rebate to the consolidator.

Is it worth paying someone else to do what you can do on your own, i.e. negotiate lower interest rates and stretch out your repayment schedule and pay off the highest-interest debts first?

To desperate ears, this might sound like an ideal solution, especially when you talk to these people and they scare the bejeezus out of you. I interviewed two, Cambridge Credit and Counseling Services and Integrated Credit Solutions. Each offered similar services, and I don't recommend either of them. The senior credit counselor I spoke to at Integrated told me, in grave tones, that it would take me 379 months -- or 32 years -- to pay off my debt. With their services, however, they would "save me 27 years," and I could pay off my debt in just 53 months, or about 4 1/2 years.

Thats funny, because when I plugged my debt into the MSN Money Debt Consolidator -- a less biased source, since they ain't getting no fee from me -- they said I could pay off my debt in 41 months, providing I make slightly higher minimum payments to each card: a total of just $60 extra per card.

Here's another risk with consolidators you should know about: they have been known, in some cases, to make late payments or even miss payments, thus worsening your plight (and your credit record).

After I got off the phone with Integrated, I had to ask myself: Is it worth paying someone else to do what you can do on your own? That is, negotiate lower interest rates and stretch out your repayment schedule and pay off the highest-interest debts first? I don't think so.

3) The Balance Transfer Trap
Low-interest balance-transfer cards are a dime a dozen these days, but remember that those rates only last a few months -- and then you have to switch cards again. The danger is that at some point all this activity begins to show up on your credit report, and you start to look like a bad risk. Then if you get turned down, "you could be left holding the high-interest card you were hoping to dump," says Kays.

If you think you can swing from the balance-transfer vines for a few months, just make sure you formally close all your accounts yourself, and then notify the credit-card company to mark the account "closed at customer's request." "Otherwise, on your credit report, it will look like the creditor closed your account," says David Mooney, PR director of Equifax, one of the biggest credit reporting agencies. Thus making you look like an even worse risk, even when you're doing your best not to be.

Your best debt-consolidation moves
If you own a home and have some equity in it, you have a couple of options that are relatively low in cost. These are pretty straightforward:

Take out a home equity loan. A home equity loan has the advantage of carrying a fairly low interest rate, currently in the high single digits, and what interest you do pay is tax-deductible, Kays points out. Most fixed-rate loans carry a 15-year term and require that borrowers pay an origination fee of $75 to several hundred dollars, plus the cost of an appraisal and title insurance.

Do a "cash-out" refinancing. Another option for those with home equity is refinancing your property for greater than the amount you owe and using the extra cash to pay off debt. You get very low interest rates this way, but you're stretching payments out over 15 or 30 years. The total interest cost over three decades can wind up being pretty huge, so think of this as a one-time-only (if ever) option.

Refinance your car. "Most people don't think of it, but it is a secured loan and you can borrow against it," Kays says. The danger there is that you may run out of car before you run out of debt. It's tough to buy a new car when you owe more than it's worth.

Get a personal loan. If you have reasonably undamaged credit, you may qualify for an unsecured loan. Credit unions (see link to the left) typically offer lower rates than banks, but even there you can expect a rate of 11% or more. Still, that may be a whole lot less than the 20%-plus you're now paying to the credit-card company.

Negotiate better terms. You can do this for yourself easily. Just call your credit-card company and ask them to do it (many customer service people are authorized to reduce rates right there on the phone).

Another alternative. Or you can get help from an organization like National Foundation for Credit Counseling (see link to left). NFCC has branches throughout the country; they are a non-profit, community organization that provides free and confidential debt management advice to anyone who needs it. You can even consult with them over the phone, like I did (see below).

Like other debt consolidators, NFCC gets paid by creditors, so it's in their best interest to work out a repayment plan rather than advise you to declare bankruptcy. Not that you want to be advised to declare bankruptcy, but in certain cases it may be your best option.

NFCC makes no outlandish promises beyond the prospect of a saner financial life, and the possibility of qualifying for their low-rate mortgage program. They also offer low-cost financial planning -- a resource I'm definitely going to look into for a future column. Once I have some finances again, I will need someone to tell me what to do with them!

So whatever happened to
Since writing about my struggles with debt, Ive become religious about paying as much money as I could every month. (Thing was: I still carried my credit cards in my wallet. So my new get-out-of-debt tip would be: Take the cards out of the wallet. Otherwise, you will use them.)

Then those big payments started to have an impact. But I was on a mission. I wanted my debt gone. I turned to debt calculators, talked with friends, and ultimately came up with a two-pronged plan of merciless debt destruction. Operation Enduring Freedom from Debt. First, I took on some extra freelance work that, eventually, would pay me a little bit more than my debt in four big chunks. While I was waiting and working, I decided to consolidate my debt and turned to NFCC as my resource.

Here's the best part of NFCC: 1) They give you a one-hour consultation, by phone or in person, to help you decide if you need a Debt Management Plan. 2) In order to do the consultation, they make you fill out a form that details all your expenses.Writing down my daily expenses is Personal Finance 101, and I've always found it mildly useful. NFCC advisor Nina Reiss, on the other hand, walked me through an entire year of expenditures. Now THAT was eye-opening. She asked me what I paid per month for things I'd forgotten even were expenses: subscriptions, holiday gifts, underwear, new socks, groceries, birthday gifts, movies (even rentals), my yoga classes, banking fees -- you'd be amazed what you pay just to live a semi-civilized life.

Ultimately, Reiss felt that I was living about $100 a month beyond my means, but that I was paying as much as I could toward the debt on my own. We did the numbers and figured that even with their interest-rate reductions, I could still pay off my debt without their help -- as long as I cut back my expenses so that I was living within my means. So in the end, dear reader, getting out debt boils down to one thing and one thing only (which you and I already knew): elbow grease, peanut butter lunches and living like a more reasonable human being.