10 Ways to Save Money

Money Saving Tips for Smart & Savvy Consumers…

1. New Savings Account
money saving tip: automate your savings

Believe it or not, but not all savings accounts are made equal. Banks are competing for your business and are trying to entice you to become a customer with attractive savings programs. For example, Citizens Bank has a savings account, HomeBuyer Savings℠, which is designed to help people save for a new home, even contributing $1,000 towards closing costs.

When shopping for a savings account, look at both banks and credit unions for the highest interest rates with the least restrictions. High yield savings accounts can sometimes pay as much as 2 percent, but often require a minimum balance and come with limitations on withdrawals.

USAA Insurance Ranks Number 1 in
Forrester’s 2010 Customer Advocacy Poll

2. New Health Care Provider
money saving tip: look for no co-pay for preventative care

It is quite possible that your co-pay increased this year, but it is also likely that your insurance company is no longer requiring a co-pay on preventative care. Why? Insurers have found that it saves you, but more importantly them, money by treating ailments early, preventing higher medical costs in the future.

When shopping for a new health care provider, check to see how much your co-pay will be. Look for an insurance company that offers $0 co-pays for therapies that are known to lower costs and reduce the chances of hospitalization. Watch for hidden fees, such as surcharges for spouses and dependents.

3. Replace Old Appliances
money saving tip: get new light bulbs and power down appliances (conserve energy)

Many Energy Star qualified appliances qualify for a federal tax credit of 30 percent on eligible products up to $1,500. Look for additional state, local, and business sponsored tax credits and rebates in your area. New appliances can greatly reduce your energy consumption, paying for themselves over time.

Look for participating appliance retailers in the government run “cash for appliances” program. Rebates through this program range between $50 to $200 per appliance, and in many cases can be added to other rebates and offers.

4. Open a Traditional IRA
money saving tip: compare traditional IRAs to Roth IRAs for tax benefits

For those who may be facing a higher tax bracket, a traditional IRA may be a great way to reduce your taxable income. Avoid capital gain taxes by opening an IRA before April 16th. Your reduction in 2009 is limited to $5,000.

When shopping IRAs, keep in mind that a Roth IRA may not reduce your current tax liability, especially if you are currently paying taxes on that money. Even if this is the case, a Roth IRA may be a better choice for some people. Be sure to consult a tax professional when seeking an IRA.

5. Cut Back on 10 Monthly Expenses
money saving tip: cut back on coffee and eating out

We’ve heard this one time and time again, but the underlying benefits remain true. There are so many little things we can do to reduce some of our expenses. Clip coupons, refill half-empty soap dispensers with water, look for secondhand items on Craigslist, etc. Select ten expenses you can cut back on and put that money in your new savings account or IRA.

If you’re one of those people who likes to eat out, and does so regularly, you can likely save a significant amount of money by learning to cook a few of your favorite meals at home. A $70 steak dinner for two costs about $20 to $30 at a local grocery store, and there are dozens of easy to prepare, sometimes readymade, meals that will feed a family of four for about $10.

6. New Cell Phone Plan
money saving tip: check the terms of your contract

Don’t get lured into a new mobile phone plan without comparing multiple offers. If you have your mind set on an iPhone, you won’t have many options until AT&T’s contract expires; however, if you can accept using one of the many competing handheld devices, you may be able to save money by switching carriers.

Often new customers get special deals on new phones, but be sure to check the conditions of your agreement with your current mobile provider. Although there is often a fee for early termination, you may save more money in the long-run by paying that cancellation fee. Assess you current phone usage trends and seek an offer that best matches.

7. Use Rewards Cards for Purchases
money saving tip: pay credit cards off in full each month

Smart and responsible credit card use can really benefit a cardholder. There are many rewards-oriented credit card offers, many of which give cash back on eligible purchases. If you have a cash back rewards card, it may very well work in your favor to make your monthly purchases with that card, but to avoid paying interest on those charges, you must pay down your balance at the end of the month.

When seeking a cash back rewards credit card, see if you can locate one that gives more than one reward point for every dollar charged, offers 0 percent for at least six months, and that has a low adjusted APR. Some credit card providers offer extra reward points based on grocery purchases and gas purchases.

8. Follow the Deals
money saving tip: look for special offers and sales via Google Alerts

If there are items that you either buy regularly or know that you may have to buy in the near future, you may be able to save on that item(s) by looking for reduced prices. Whether you plan to replace an electronic component or grocery shopping, if you take the time to compare prices, you can save money.

One of the best ways to watch for sales is to set up Google Alerts for the items you want or regularly use; whenever that item is mentioned online, you’ll receive an email letting you know if it is being offered at a discounted price. You can also set up an RSS feed from many supermarket chain’s weekly specials, and receive email alerts from major electronic providers, to help reduce the research time.

9. Assess Your Commute
money saving tip: carpool, use public transportation, drive less

Ever thought a new car could save you money? Depending on the car offer it may very well be. Car dealerships often run 0 down, 0 percent APR, cash back, and other gimmicks to “move metal”. You may have to either downsize to a smaller model, or convert from that luxury manufacturer to the standard edition manufacturer, but lowering your monthly bills with a new car is not too farfetched.

When shopping new cars, do your homework. The internet has made a car salesman’s job much more difficult; compare the best car deals on high MPG cars to get the biggest bang for your buck. If you are not a great negotiator, you may want to consider hiring a car-buying liaison, who for a fee, will not only help you locate a car but will negotiate with the dealership to ensure you get the best possible deal.

10. Form a Budget
money saving tip: put at least 10% of your income aside for savings

We’ve all heard the importance of using a budget for better personal money management, but few people who are really struggling to make ends meet actually budget their income. Look at budgeting as goal setting. You know the variables; now determine how much you can set aside for savings.

Parents with young children need to start setting money aside for college funding early. Use savings accounts, IRAs, CDs, a 401-k or other form of long-term savings to plan for retirement. Before investing money into anything, be sure to speak with a professional financial advisor to best determine how much you can afford to contribute and which plan will yield the best return.

Related Information
Save Money on Your Home Expenses
Some Clues for Finding New Tax Breaks
Wealthier Investors Get Do-Over With Roth IRA Rules
Health Savings Accounts: More Time, Less Money
How to Save Money on Groceries

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Tags: AT&T, Energy Star, Google Alerts, HomeBuyer Savings℠, Insurance Programs, iPhone, Roth IRA, Savings Programs, Traditional IRA

Savings Accounts Money Market Savings℠ Wells Fargo

Credit Cards American Express Centurion® American Express