Spend less on Everyday Items..Part 2…

This is second part of a two part series for practical everyday tips.

1. Increase insurance deductibles. Most of us don’t need to be insured for all losses over $100 on our car, for example. Although we wouldn’t want to pay a $250 or even $500 deductible, we could. If that’s you, find out how much you’d save from raising your deductible. I’ve raised my deductibles on my auto insurance and home owner’s insurance and saved a considerable amount.
2. Think before submitting an insurance claim. My rule of thumb is that I won’t submit a claim on a loss that is less than twice my deductible. So for a $250 deductible on an auto loss, I’ll pay out of pocket any loss up to $500. Why? The $250 I’d receive from my insurance company is not worth the increased premiums I’m likely to pay. You may want to call your insurance agent to find out how a claim will impact your premiums before filing the claim.
3. Get rid of your home telephone. This is a great way to save money. Many don’t do it because of the 911 service, and that’s understandable. But if you’re comfortable relying on a cell phone, there’s no reason to keep a land line. If you do, consider reducing your service to the minimum and only use the phone in an emergency.
4. Consider VOiP telephone service. We use Internet phone service and have saved substantial money over Verizon service. The phone service has been very reliable, and you’d never even know the signal was being carried over the Internet.
5. Shut vents in unused rooms. This isn’t advisable if you have forced air heating, but shutting vents in unused rooms can save on your heating and cooling bill.
6. Eliminate some cable service. Note that I’m not recommending getting rid of cable completely, although that’s certainly a way to save money. If you must have cable, take a look at all the charges on your cable bill and consider getting rid of some of the service. Try it for a month and see if you really miss those last 500 channels.
7. Agree to limit gift giving. At Christmas our extended family and we go overboard when it comes to gift giving. Agree in advance to limit the gifts and save everybody some money.
8. Get healthy. Your health will directly impact the cost of life insurance and, in some cases, can reduce the cost of your health insurance.
9. Cancel the health club membership. Seems to contradict the previous tip, but evaluate how much you really use your health club. Less expensive options may include a gym at your work or a gym at your local parks and recreation center. Some offer pay as you go options rather than monthly fees, which can be great for those of us who aren’t as consistent in our routines as we’d like to be.
10. Pass on extended warranties. A $129 two year extension on a $300 product is just not worth it. Warranties are insurance, and we rarely need to insure such a small amount.
11. Take your lunch to work one more day a week than you do now. Eating out at lunch is fun, so I wouldn’t eliminate it completely. But taking lunch just one more day a week will keep money in your pocket.
12. Buy low cost mutual funds. This is easy to miss because the money doesn’t come out of your pocket each month. But keep an eye on the cost of the mutual funds in your 401(k) and other investments. My rule of thumb is that no fund should cost more than 1% and the combined cost for all your funds should be less than 0.50%. If you don’t believe that even a half percent can make a big difference, read this.
13. Take advantage of employer 401(k) matches. If your employer matches 401(k) contributions, do everything you can to take full advantage of that match.
14. Use flexible spending accounts. FSAs allow you to pay certain medical, dental and child care expenses using pre-tax dollars. If your not taking advantage of these accounts, you’re wasting money. Enrollment at many companies is occurring now, so check with your HR department if you have any questions about FSAs.
15. Get tires from Costco or other wholesale clubs. Simply put, they cost a lot less than buying them at the dealer or even a chain tire store.
16. Keep tires properly inflated. It keeps you safe and costs less on gas.
17. Stop smoking. Need I say more?
18. Drink less alcohol. It costs money and ads calories.
19. Buy term life insurance. Any other life insurance product is just not worth the extra cost.
20. Buy generic over-the-counter medicines. They are exactly the same as their branded counterparts and cost less.
21. Get organized and avoid missed payments. I’ve missed a payment or two because the bill got buried beneath a stack of papers. Get organized and avoid those late payment penalties. If you do miss a payment, call your creditor and ask to have the penalty removed. They’ll usually accommodate the request, at least the first time.
22. Buy online when it saves you money. I’ve used Amazon to buy more than just books. It sells just about anything and sometimes at substantial savings.
23. Consider MythTV PVR in replace of TiVo type services. I just ran across MythTV and am still investigating it. I pay $15 a month to my cable company for a DVR box and would love to save the money. If you’ve used MythTV, let us know how well it works. You can get more information about MythTV on the web.
24. Use Open Source software when possible. I use GIMP instead of Photoshop. GIMP is free; Photoshop ain’t.
25. Check the insulation in your home. Extra insulation can easily pay for itself in one or two years, and it helps save the environment, too.
26. Buy energy efficient appliances. Look for the Energy Star on appliances and consider the annual energy cost before buying. More efficient appliances cost more, but you make up the extra cost and then some over the life of the product.
27. Stay married. Yes, I did say 51 “painless” money-saving tips. Yes, I know that some marriages end because of abuse and other extreme circumstances. “Isn’t marriage about love”, you ask. Sometimes. “You don’t know my situation”, you say. True. But I lived through the emotional and financial pain of a divorce as a child, and I’ve been married to the same man for more than 15 years, so I know plenty. Am I telling you not to get a divorce? Of course not. I am telling you that divorce will wreck your finances and your spouse’s finances.