Slide Show | February 2009
TOP SAVINGS TIPS FOR 2009
We searched for big gains and sliced $18,250 in savings for a full year. It's all detailed in the March 2009 issue of Kiplinger's Personal Finance magazine. Here are some of the Top Savings Tips from the cover story, to help you get started on saving money in every area of your life. Click on the slide show to your right, and see how much you can put back into your pocket!
Compiled by Amy Pollak
Covercast: How to Save $50 A Day
Save on Practically Everything
Fabulous Freebies
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TOP SAVINGS TIPS FOR 2009
Banking & Loans: Wipe Out Interest
ANNUAL SAVINGS: $422 (on a rate of 13.6%)
More Banking & Loan Tips Banking & Loans: Wipe Out Interest
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TOP SAVINGS TIPS FOR 2009
Banking & Loans: Use Cash-Back Cards
If you spend $850 a month for 12 months using Blue Cash from American Express, you could see a $250 credit on your bill at the end of the period. Even charging $550 a month on basics such as groceries, gas and drugstore purchases can put money in your pocket.
ANNUAL SAVINGS: $250
More Banking & Loan Tips Banking & Loans: Use Cash-Back Cards
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TOP SAVINGS TIPS FOR 2009
Banking & Loans: Refinance Your Mortgage
On a $200,000 mortgage, that translates into a savings of almost $193 per month. For your own situation, use the "How much will my payment be?" calculator at Kiplinger.com. Of course, for a refi to pay off, you must stay in the house long enough to recoup any closing costs, which typically amount to 2% to 4% of the loan.
ANNUAL SAVINGS: $2,313 (refinancing a $200,000 mortgage)
More Banking & Loan Tips Banking & Loans: Refinance Your Mortgage
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TOP SAVINGS TIPS FOR 2009
Health & Insurance: Reshop Life Insurance
Term-insurance prices varied widely in 1998, and many major insurers were charging a 40-year-old man at least $750 per year for a $500,000, 20-year term policy.
Today, a healthy 50-year-old man can buy a $500,000 ten-year term policy (which expires in the same year) for just $445-a savings of more than $300 per year. Compare prices among dozens of insurers at Accuquote.com.
ANNUAL SAVINGS:$300 (on a ten-year term policy for a 50-year-old)
More Health & Insurance Tips Health & Insurance: Reshop Life Insurance
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TOP SAVINGS TIPS FOR 2009
Health & Insurance: Boost the Deductibles
For example, boosting the deductibles from $500 to $1,000 would mean a savings of $648 per year, on average, for a northern California family with two teenage drivers, according to the database at InsWeb, an insurance Web site. Raising the deductibles from $250 to $2,500 lowers the average premium by $1,503.
ANNUAL SAVINGS: $648 (with a $1,000 deductible and two teenagers)
More Health & Insurance Tips Health & Insurance: Boost the Deductibles
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TOP SAVINGS TIPS FOR 2009
Investing Costs: Slash Fees
For instance, Fidelity Spartan 500 Index fund (symbol FSMKX), which tracks Standard & Poor’s 500-stock index, has an annual expense ratio of just 0.10%. And indexing isn’t a compromise strategy. Managers of many top pension funds and endowments swear by it.
ANNUAL SAVINGS: $1,200 (based on cutting expenses from 1.3% to 0.10% on a $100,000 portfolio)
More Investing Tips Investing Costs: Slash Fees
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TOP SAVINGS TIPS FOR 2009
Investing Costs: Go With A Discount Broker
Or, trade for free. ZeccoTrading gives you ten free stock trades per month if you maintain a minimum balance of $25,000. WellsTrade allows 100 free trades a year if you keep a total of $25,000 or more in Wells Fargo in almost all types of accounts.
ANNUAL SAVINGS: $240 (using a discount broker for one trade per month)
More Investing Tips Investing Costs: Go With A Discount Broker
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TOP SAVINGS TIPS FOR 2009
Food Costs: Belly Up To The Bar
We computed the difference in price between ordering two entrees from the regular menu and three items (one for each diner, plus one to share) from the bar menu.
CHEESECAKE FACTORY
ENTREE: Salmon salad ($32)
BAR: Chicken pot stickers ($9)
SAVINGS FOR TWO: $23
MCCORMICK & SCHMICK’S
ENTREE: Rainbow trout ($35.60)
BAR: Fish and scallop ceviche ($12)
SAVINGS FOR TWO: $23.60
MORTON’S THE STEAKHOUSE
ENTREE: New York strip steak ($86)
BAR: Petite filet mignon sandwiches ($30)
SAVINGS FOR TWO: $56.
TOTAL ANNUAL SAVINGS: $410 (for a couple who dine out once a month)
More Food Cost Savings Tips Food Costs: Belly Up To The Bar
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TOP SAVINGS TIPS FOR 2009
Food Costs: Switch Supermarkets
Result: Costco can supply a family of four with many of the basics for an annual tab of $1,708, followed by Safeway, at $2,417, and Whole Foods, at a pricey $3,498. If there is no Costco in your area try BJ's and Sam's Warehouse for great discounts.
ANNUAL SAVINGS:$1,790 (Costco versus Whole Foods)
More Food Cost Savings Tips Food Costs: Switch Supermarkets
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TOP SAVINGS TIPS FOR 2009
Utility Costs: Bundle Up For Savings
All those services can easily total more than $150 a month if billed separately, so a monthly savings of $20 is a minimum if you go the bundling route. One caveat: That $99 deal usually lasts for only one year. Solution: If your contract price rises, you can either switch providers for a lower rate or threaten to switch providers to bargain your rate back down.
ANNUAL SAVINGS: $240
More Utility Cost Savings Tips Utility Costs: Bundle Up For Savings
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TOP SAVINGS TIPS FOR 2009
Utility Costs: Trim Utility Bills
ANNUAL SAVINGS: $180
More Utility Cost Savings Tips Utility Costs: Trim Utility Bills
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TOP SAVINGS TIPS FOR 2009
Leisure Costs: Swap Sitting Services
ANNUAL SAVINGS: $480 (one night out a month)
More Leisure Cost Savings Tips Leisure Costs: Swap Sitting Services
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TOP SAVINGS TIPS FOR 2009
Leisure Costs: Last Minute Travel
If you had planned the same trip several months in advance and booked it all separately, you'd have spent $2,500.
ANNUAL SAVINGS: $500 (one package trip to a vacation destination)
More Leisure Cost Savings Tips Leisure Costs: Last Minute Travel
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TOP SAVINGS TIPS FOR 2009
Transportation Costs: Buy a Fuel-Efficient Car
Downsizing from a gas guzzler also does the trick. Not all trade-downs are equal, though. For example, beware of swapping a relatively new large crossover for a smaller one with better gas mileage.
The money you lose by trading in a newer vehicle (cars typically lose 40% to 50% of their value in the first three years of ownership) may be more than the money you save on gas. A smart new-car downsize: Swap a '07 Chevrolet Tahoe AWD for a '09 Volkswagen Jetta SportWagen. You'll save on both gas and monthly payments without losing all your cargo space. SAVINGS: $1,031
TOTAL ANNUAL SAVINGS: $1,581 (if both changes are made by a two-car family)
More Transportation Cost Tips Transportation Costs: Buy a Fuel-Efficient Car
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TOP SAVINGS TIPS FOR 2009
Transportation Costs: Save On Gas
Keep your cool. Easing up on aggressive driving can cut your fuel consumption by 35%. Speeding is the biggest culprit, but drag-race-inspired peal-outs and jerky lane changes also shave miles per gallon. SAVINGS: $400
Get rid of the junk in your trunk. An extra 100 pounds in your vehicle costs you. SAVINGS: $30
Maintain your vehicle by keeping your engine properly tuned and tires inflated, replacing air filters regularly and using the right grade of motor oil. SAVINGS: $348
TOTAL ANNUAL SAVINGS: $778 (based on studies using the best-selling Toyota Camry V6)
More Transportation Cost Tips Transportation Costs: Save On Gas
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TOP SAVINGS TIPS FOR 2009
Shop and Save: Laptops
SAVINGS: $395
More Shop and Save Tips Shop and Save: Laptops
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TOP SAVINGS TIPS FOR 2009
Shop and Save: Televisions
SAVINGS: $144
More Shop and Save Tips
Covercast: How to Save $50 A Day
Save on Practically Everything
Fabulous Freebies
