A WorkLife4You Guide

66 Ways to Save Money

For most kinds of purchases, you can get New Cars
valuable advice and comparisons on the 6. You can save thousands of dollars over
Internet. Ask a librarian or friends which the lifetime of a car by selecting a model
Internet sites they think are helpful, or you that combines a low purchase price with
can use a search engine like Google or Yahoo. low depreciation, financing, insurance,
Be aware that information you find is often gasoline, maintenance, and repair costs.
biased. At many websites, the only products Ask your local librarian for new car
or sellers listed are ones that pay to advertise. guides that contain this information.
Before buying anything on the Internet, check
several websites and make sure you 7. Having selected a model and options you
deal with reputable dealers. are interested in, you can save hundreds
of dollars by comparison shopping. Get
Transportation
price quotes from several dealers (over
the phone or Internet) and let each know
Airline Fares you are contacting the others.
1. Compare low-cost carriers with major 8. Remember there is no “cooling off ”
carriers that fly to your destination. period on new car sales. Once you have
Remember, the best fares may not be out signed a contract, you are obligated to
of the airport closest to you. buy the car.
2. You may save by including a Saturday Used Cars
evening stay-over or by purchasing the
ticket at least 14 days in advance. Ask 9. Before buying any used car:
which days of the week and times of the • Compare the seller’s asking price with
day have the lowest fare. the average retail price in a “bluebook”
3. Even if you are using a travel agent, check or other guide to car prices which can
airline and Internet travel sites, and look be found at many libraries, banks, and
for special deals. If you call, always ask for credit unions.
the lowest fare to your destination. • Have a mechanic you trust check the
car, especially if the car is sold “as is.”
Car Rental
10. Consider purchasing a used car from an
4. Since car rental rates can vary greatly, individual you know and trust. They are
compare total price (including taxes and more likely than other sellers to charge a
surcharge) and take advantage of any lower price and point out any problems
special offers and membership discounts. with the car.
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.
Auto Leasing Insurance
11. Don’t decide to lease a car just because
Auto Insurance
the payments are lower than on a
traditional auto loan. The leasing 16. You can save several hundred dollars a
payments are lower because you don’t year by purchasing auto insurance from a
actually own the car. licensed, low-price insurer. Call your state
insurance department for a publication
12. Leasing a car is very complicated. When showing typical prices charged by
shopping, consider the price of the car different companies. Then call at least
(known as the capitalized cost), your four of the lowest-priced, licensed
trade-in allowance, any down payment, insurers to learn what they would charge
monthly payments, various fees (excess you for the same coverage.
mileage, excess “wear and tear,” end-of-
lease), and the cost of buying the car at 17. Talk to your agent or insurer about
the end of the lease. Valuable information raising your deductibles on collision
about auto leasing can be found in the and comprehensive coverage to at least
guide Keys to Vehicle Leasing. $500 or, if you have an old car, dropping
this coverage altogether. This can save
Gasoline you hundreds of dollars on insurance
13. You can save hundreds of dollars a year premiums.
by comparing prices at different stations, 18. Make certain that your new policy is in
pumping gas yourself, and using the effect before dropping your old one.
lowest-octane called for in your owner’s
manual. Homeowner/Renter Insurance
14. You can save up to $100 a year on gas by 19. You can save several hundred dollars a
keeping your engine tuned and your tires year on homeowner insurance and up
inflated to their proper pressure. to $50 a year on renter insurance by
purchasing insurance from a low-price,
Car Repairs licensed insurer. Ask your state insurance
15. Consumers lose billions of dollars department for a publication showing
each year on unneeded or poorly done typical prices charged by different
car repairs. The most important step licensed companies. Then call at least
that you can take to save money on four of the lowest priced insurers to
these repairs is to find a skilled, honest learn what they would charge you. If
mechanic. Before you need repairs, look such a publication is not available, it is
for a mechanic who: even more important to call at least four
insurers for price quotes.
• is certified and well established;
20. Make certain you purchase enough
• has done good work for someone you coverage to replace the house and its
know; and contents. “Replacement” on the house
• communicates well about repair means rebuilding to its current condition.
options and costs. 21. Make certain your new policy is in effect
before dropping your old one.
Life Insurance 29. To earn the highest return on savings
22. If you want insurance protection only, (annual percentage yield) with little or
and not a savings and investment no risk, consider certificates of deposit
product, buy a term life insurance policy. (CDs) or U.S. Savings Bonds (Series I or
EE).
23. If you want to buy a whole life, universal
life, or other cash value policy, plan to Credit Cards
hold it for at least 15 years. Canceling
30. To avoid late payment fees and possible
these policies after only a few years can
interest rate increases on your credit
more than double your life insurance
cards, make sure you send in your
costs.
payment a week to ten days before the
24. Check the National Association of statement due date. Late payments on
Insurance Commissioners website (www. one card can increase fees and interest
naic.org/cis) or your local library for rates on other cards.
information on the financial soundness
31. You can avoid interest charges, which
of insurance companies.
may be considerable, by paying off your
entire bill each month. If you are unable
Banking/Credit to pay off a large balance, pay as much
as you can. Try to shift the remaining
Checking Accounts and Debit Cards
balance to a credit card with a lower
25. You can save more than $100 a year in annual percentage rate (APR). You can
fees by selecting a free checking account find listings of credit card plans, rates,
or one with no minimum balance and terms on the Internet, in personal
requirement. Request a complete list of finance magazines, and in newspapers.
fees that are charged on these accounts,
including ATM and debit card fees. 32. Be aware that credit cards with rebates,
cash back, travel awards, or other perks
26. See if you can get free or lower cost may carry higher rates or fees.
checking through direct deposit or
agreeing to ATM only use. Be aware of Auto Loans
charges for using an ATM not associated 33. To save as much as several thousand
with your financial institution. dollars in finance charges, pay for the car
in cash or make a large down payment.
Savings Products
Always get the shortest term loan possible
27. Before opening a savings account, find as this will lower your interest rate.
out whether the account is insured by
the federal government (FDIC for banks 34. Make certain to get a rate quote (or pre-
or NCUA for credit unions). Financial approved loan) from your bank or credit
institutions offer a number of products, union before seeking dealer financing.
such as mutual funds and annuities, You can save as much as $1000 in
which are not insured. finance charges by shopping for the
cheapest loan.
28. Once you select a type of savings
account, use the telephone, newspaper, 35. Make certain to consider the dollar
and Internet to compare rates and fees difference between low-rate financing and
offered by different financial institutions- a lower sale price. Remember that getting
including those outside your city. These zero or low-rate financing from a dealer
rates can vary a lot and, over time, can may prevent you from getting the rebate.
significantly affect interest earnings.
First Mortgage Loans Home Equity Loans
36. Although your monthly payment may be 41. Be cautious in taking out home equity
higher, you can save tens of thousands of loans. The loans reduce or may even
dollars in interest charges by shopping eliminate the equity that you have built
for the shortest-term mortgage you can up in your home. (Equity is the cash you
afford. For each $100,000 you borrow would have if you sold your house and
at a seven percent annual percentage rate paid off your mortgage loans.) If you
(APR), for example, you will pay over are unable to make payments on home
$75,000 less in interest on a 15-year equity loans, you could lose your home.
fixed rate mortgage than you would on a 42. Compare home equity loans offered
30-year fixed rate mortgage. by at least four reputable lending
37. You can save thousands of dollars in institutions. Consider the interest rate
interest charges by shopping for the on the loan and the annual percentage
lowest-rate mortgage with the fewest rate (APR), which includes other costs,
points. On a 15-year $100,000 fixed-rate such as origination fees, discount points,
mortgage, just lowering the APR from mortgage insurance, and other fees. Ask
7 percent to 6.5 percent can save you if the rate changes, and if so, how it is
more than $5,000 in interest charges calculated and how frequently, as this
over the life of the loan, and paying two will affect the amount of your monthly
points instead of three would save you an payments.
additional $1,000.
38. Check the Internet or your local Housing
newspaper for mortgage rate surveys,
Home Purchase
then call several lenders for information
about their rates (APRs), points, and fees. 43. You can often negotiate a lower sale price
If you choose a mortgage broker, make by employing a buyer broker who works
certain to compare their offers with those for you, not the seller. If the buyer broker
of direct lenders. or the broker’s firm also lists properties,
there may be a conflict of interest, so ask
39. Be aware that the interest rate on most them to tell you if they are showing you
adjustable rate mortgages (ARMs) can a property that they have listed.
vary a great deal over the lifetime of the
loan. An increase of several percentage 44. Do not purchase any house until it has
points might raise payments by hundreds been examined by a home inspector that
of dollars a month, so ask the lender you selected.
what the highest possible monthly
payment might be. Renting a Place to Live
45. Do not limit your rental housing search
Mortgage Refinancing to classified ads or referrals from friends
40. Consider refinancing your mortgage if and acquaintances. Select buildings where
you can get a rate that is lower than your you would like to live and contact their
existing mortgage rate and plan to keep building manager or owner to see if
the new mortgage for at least several anything is available.
years. Calculate precisely how much your 46. Remember that signing a lease probably
new mortgage (including points, fees and obligates you to make all monthly
closing costs) will cost and whether, in payments for the term of the agreement.
the long run, it will cost less than your
current mortgage.
Home Improvement Telephone Service
47. Home repairs often cost thousands of 53. Once a year, review your phone bills
dollars and are the subject of frequent for the previous three months to see
complaints. Select from among several what local, local toll, long distance, and
well established, licensed contractors who international calls you normally make.
have submitted written, fixed-price bids Call several phone companies which
for the work. provide service in your area (including
48. Do not sign any contract that requires wireless and cable), to find the cheapest
full payment before satisfactory calling plan that meets your needs.
completion of the work. Consider a bundled package that offers
local, local toll and long distance, and
Major Appliances possibly other services, if you heavily use
all the services in the bundle.
49. Consult Consumer Reports, available in
most public libraries, for information 54. Check your phone bill to see if you have
about specific appliance brands and optional calling features or additional
models and how to evaluate them, services, such as inside wire maintenance,
including energy use. There are often that you don’t need. Each option you
great price and quality differences. Look drop could save you $40 or more each
for the yellow Energy Guide label on year.
products, and especially for products that 55. If you make very few toll or long
have earned the government’s ENERGY distance calls, avoid calling plans with
STAR®, which can save up to 50 percent monthly fees or minimums. Or consider
in energy use. disconnecting the service altogether and
50. Once you’ve selected a specific brand and use dial around services such as 10-10
model, check the Internet or yellow pages numbers or prepaid phone cards for your
to learn what stores carry the brand. Call calls. When shopping for dial around
at least four of these stores to compare service, look for fees, call minimum, and
prices and ask if that’s the lowest price per minute rates. Treat prepaid cards as
they can offer you. This comparison cash and find out if there is an expiration
shopping can save you as much as $100 date.
or more. 56. If you use a cell phone, make sure your
calling plan matches the pattern of calls
Utilities you typically make. Understand peak
calling periods, area coverage, roaming,
Heating and Cooling and termination charges. Contracts
51. A home energy audit can identify ways to offered by most carriers will provide you
save up to hundreds of dollars a year on with a trial period of 14 days or more.
home heating (and air conditioning). Ask Use that time to make sure the service
your electric or gas utility if they audit provides coverage in all the places you
homes for free or for a reasonable charge. will be using the phone (home, work
If they do not, ask them to refer you to a etc.). Prepaid wireless plans tend to have
qualified professional. higher per minute rates and fees but may
52. Enrolling in load management programs be a better option if you use the phone
and off-hour rate programs offered by only occasionally.
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.
57. Before making calls when away from Funeral Arrangements
home, compare per minute rates and 64. Plan ahead, making your wishes known
surcharges for cell phones, prepaid phone about your funeral, memorial, or burial
cards, and calling card plans to find how arrangements in writing to save your
to save the most money. family or estate unnecessary expense.
58. Dial your long distance calls directly. 65. For information about the least costly
Using an operator to place the call can options, which may save you several
cost you up to $10 extra. To save money thousand dollars, contact a local Funeral
on information calls, look the number up Consumer Alliance or memorial society,
on the Internet, or in the directory. which are usually listed in the Yellow
Pages under funeral services.
Other
66. Before selecting a funeral home, call
Food Purchased at Markets several and ask for prices of specific goods
and services, or visit them to obtain an
59. You can save hundreds of dollars a year itemized price list. You are entitled to this
by shopping at lower-priced food stores. information by law.
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.
 Source: Federal Citizen Information Center

This publication is for general informational purposes only and is not intended
to provide any reader with specific authority, advice or recommendations.

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