Spend less on Everyday Items..Part 1

We are all about ways about ways to develop the habit of spending less than you make. To continue that topic, here are some practical and painless money saving tips to help you save some cash each month. I’d like to get the number of tips to at least 101, so if you have some money-saving suggestions, send them to us!

1. Combine your cable, internet and telephone service. Companies now offer combined services that not only cost less, but offer the convenience of a single bill.
2. Slow down your internet service. I went to the slower internet service option with my cable company and saved $15 per month. And I haven’t noticed a difference when surfing the Net.
3. Send away for and follow up on rebates. After you buy a product with a rebate, send in the form that day. Then mark your calendar to remind yourself to follow up with the rebate company if the check hasn’t show up.
4. Buy a refurbished Mac: I’ve written about this before because it is a great way to buy not only computers, but iPods and iPhones as well. You can check out the details on how to buy a refurbished iPhone at www.mac.com.
5. Convert to a gas water heater. They are more efficient and will save you money in the long run.
6. Request a reduction in the interest rate for your home equity line of credit. I did and my mortgage company agreed to reduce the rate by more than 0.50%. And if you are looking for a home equity loan, LendingTree Home Equity Loans is a great place to check out available options.
7. Request a reduction in the interest rate on your credit cards. As with home equity loans, credit card companies sometimes are willing to reduce the interest rate. It can’t hurt to ask.
8. Refinance you mortgage. If you can reduce your interest rate by one percent or more, it is often beneficial to refinance. This is particularly true for those with high rates due to less than stellar credit scores. If your score has improved, you may qualify for a better rate. I would start by asking your current mortgage lender about lower rates. Here’s a refinance calculator to help you determine if refinancing is right for you.
9. Get rid of Private Mortgage Insurance. If your down payment was less than 20%, you are probably paying PMI. Once you have a 20% cushion through reducing your debt and home appreciation (yes, prices do go up from time to time), contact your mortgage company to start the process of removing the PMI.
10. Get your books from the library. I love books and read every day. While I buy some of the books I read, most come from the library. Simply put, it’s hard to beat free.
11. Get DVDs from the library. Many libraries now have movies on DVD that can be checked out. If your library offers this service, it sure beats paying Blockbuster or Netflix.
12. Get DVDs from Red Box. If your library doesn’t offer DVDs, get your moves from Red Box. It costs just one dollar per night. You find Red Box locations here. Netflix.com is also a great, low cost and convenient alternative.
13. Read magazines at the library or online. Too many magazines can cost a fortune. And how many times have you bought a magazine based on the cover and been disappointed by the lack of substance. At the library you can read magazines for free. And many magazines now offer their content for free online.
14. Subscribe to magazines that are must reads. If you must have a certain magazine each month, subscribe. Subscriptions offer substantial savings over the cost at the newsstand. Update: Amazon offers some great deals on personal finance magazines.
15. Buy your car over the internet: Search the internet for information on the car you want and then send e-mail requests to dealers for the best price. Even if the dealer is located in another state, the cost to have the car delivered may still be worth it. I paid $500 to have a Honda Odyssey shipped 500 miles and still saved $1,000 over the best local price available.
16. Request a discount on trash service. For some reason this is a highly competitive business. If you get a better offer in the mail for trash service, call your current trash company and ask them to beat the offer. My trash service has reduced its rates twice in six months to match competing offers.
17. Never pay checking account fees. I hate bank fees. With so many free checking account plans available, there’s no reason to pay a fee. And if the bank happens to charge you one, ask them to reverse the fee or take your business to another bank.
18. Get a rewards card. There are many reward cards that pay out in cash or points that can be redeemed for travel or products. Many of these cards don’t have an annual fee. I recently traveled to my college reunion for free using points earned from a credit card. My favorite rewards card is American Express Gold Card. It does have an annual fee, although follow this link (American Express) to apply and the first year fee is waived. You can also check out my review of several travel reward credit cards.
19. Don’t pay interest on credit cards. This is obvious, but I soon as you fail to pay off the credit card in full, the high interest payments start to eat away at your monthly budget. If the temptation to spend more than you can pay on a credit card is to great, get rid of the credit card (and ignore the previous tip!).
20. Take advantage of 0% credit card offers. I’ve saved thousands of dollars using 0% balance transfer credit cards. Again, as long as the cards won’t cause you to spend more, they can offer substantial savings. Make sure, however, that you keep an eye on the balance transfer fee, which can wipe out your savings.
21. Replace incandescent bulbs with compact fluorescent light (CFLs) bulbs. These bulbs use 75% less energy and last 10 times longer. They do take some getting used to, and they won’t work in every light fixture. But use them where it makes sense and save energy and money.
22. Drive your car longer. The buy new versus used debate often overlooks the most important factor–how long you own your car. Drive it as long as you safely can for substantial savings.
23. Pay your life insurance annually. Insurance companies charge you more if you pay monthly, quarterly or semi-annually. Pay once a year and you’ll pay less.
24. Pay car insurance semi-annually. At least with my car insurance, they offer quarterly and semi-annual payment options. It costs more to pay quarterly, and twice a year is more convenient anyway.

Stay tuned for Part 2 of of spend less on Every Day Items, where we move to the practicalities of need vs. want. If you have any comments or tips please send us an email at Tips