How to keep your piggy bank happy in 2009
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By McClatchy Newspapers
The new year is here, but 2008’s economic woes are lingering.
So we thought we’d share some old-fashioned penny-pinching tips to start 2009 on a frugal note. They come from readers and miserly co-workers, with some from rules our mothers taught us or hints we’ve read over the years.
Of course, one person’s “don’t need that” is another’s “can’t live without.” (Notice we didn’t suggest cutting out the $4 latte.)
If some of the tips strike you as “well, duh,” good for you. But just because you know that it pays to turn off lights, does everyone in your home? Show them this.
Keep a thrifty home1.Lower your thermostat at night and stay warm with flannel sheets and down comforters. For each degree you lower it, you’ll reduce heating costs 3 percent to 5 percent.
2.Unplug electronics that aren’t being used.
3.Wear long underwear.
4.Replace your light bulbs with compact fluorescents; over its lifetime, a single CFL provides around $30 in savings.
5.Turn off lights when you’re not in a room; 5 percent to 10 percent of your monthly energy bill goes toward lighting.
6.Seal ducts and add insulation.
7.Replace old windows and exterior doors. If you can’t afford to do the whole house at once, start in the rooms you use the most.
8.Turn the dishwasher off when it gets to the drying cycle and open the door to add heat to the room. It also puts moist air into your home when heating systems can dry the air. Likewise, when you finish baking, open the oven door.
Paying (and cutting) bills9.Pay biweekly instead of monthly on your mortgage. You’ll make an extra payment annually and save thousands on interest over the life of the loan.
10.Check with your phone, cable or insurance companies at least once a year to see whether you’re getting the best rate. Ask about discounts and specials.
11.Pay your bills on time to avoid any late fees.
12.Look at your insurance policies — home and auto — and consider upping the deductible for a lower premium. Raising homeowners’ deductible to $500 can cut a premium by up to 15 percent, reports the Insurance Information Institute, a trade group.
Your ride and routine
13.Consolidate trips to save gas.
14.Buy a fuel-efficient, reliable car. Pay cash if at all possible or put a good chunk down. Keep it once you have paid it off, and you will save on car payments and insurance.
15.You don’t need premium gas unless the owner’s manual says “premium required.”
16.Keep tires properly inflated.
17.Keep car tuned and the oil changed.
18.Bike or walk.
19.Learn from the pros. UPS maps out its trips in advance to avoid left turns, which cuts down on engine idling.
Eat healthy, pay less
20.Cook more meals at home and turn last night’s dinners into today’s lunch.
21.Plan a week’s worth of meals to cut out spontaneous grocery trips and impulse buys.
22.Stop paying for bottled water. Get a refillable container and use tap water.
23. Stockpile when you find good deals; combine coupons with sales.
24.If you have a freezer, buy meat when it has been marked down. Label with description and date frozen. You’ll want to use most meat in three to four months, but a whole uncooked chicken can last a year without affecting quality. For a chart and freezing guidelines go to www.fsis.usda.gov and click on “Fact sheets” then “Freezing and food safety.”
25.Learn to cut up a chicken; buying a whole chicken is cheaper than buying parts.
26. Buy potatoes, oranges and the like in bags. They’re usually cheaper than when bought individually.
27.Don’t buy nongrocery items such as toothpaste and shampoos at grocery stores; they are generally cheaper at mass-market retailers and warehouse stores.
28.Look at an item’s cost per unit (it’s on the sticker on the shelf). Shop with a calculator.
Be a smarter shopper
29.Look for senior citizen, student, alumni and military discounts.
30.Give yourself a cooling-off period before buying anything that isn’t a basic need. Can you do without it? Can you make it?
31.Don’t shop as entertainment. Or when you’re hungry or depressed.
32. Bought something only to see it on sale the next week? Many stores will let you bring the item back for the discount.
33. Check receipts for savings. Stores such as J.C. Penney send you to online surveys from their receipts. In return, you get coupons for money off.
34. Shop seasonally for sales. Sure, swimsuits are cheaper in September, but did you know cookware usually goes on sale in May (just in time for weddings and graduations)?
35.Don’t be tempted. Go to www.dmachoice.org to have all catalogs stopped.
Use credit cards wisely
36.Get a credit card with rebates.
37.Earn reward points with your debit or credit card? Remember to use them before they expire. If you don’t have enough points for something big, get gift cards. They make great presents, or use them yourself.
Travel more, spend less
38.When traveling, stay at hotels that offer free breakfast. If there’s a microwave or fridge in the room, look for a nearby grocery store. Even if you dine out for most meals, pick up a few snacks and you’ll save vending machine costs, not to mention calories.
39.Staying somewhere several days? See about renting a cabin or vacation home, and you can save money by cooking your own meals rather than eating out.
Eat out with a light check
40.When eating out, order from the appetizers section.
41.If you do go out to partake of food and drink, check for specials (is Friday margarita night?) and order accordingly.
42.Fast food chains make money on soda; the markup is about 80 percent. Order water.
On holidays, be a Scrooge
43.Shop for Christmas and other gift-giving times throughout the year to take advantage of sales. Organize a gift closet in a designated place in the house. Then go one further and take a digital photo of the item, download it and add notes about who it’s for and when you bought it. Save receipts.
44.Frequent after-holiday sales. After Christmas, buy red and green wrapped candy. Separate the red for Valentine’s Day; the green will work for St. Patrick’s Day. After Valentine’s Day, think 4th of July. After Halloween, think Thanksgiving. Giftwrap, cards, toys, etc. can all be saved for next year. Plain giftwrap can be used throughout the year. It’s a good time to stock up on cards as well.
Entertain on the cheap
45.Trim your cable or satellite TV. Keep your Internet connection and watch new and classic shows on Web sites such as YouTube, Hulu and NBC.com. Consider joining DVD subscription services such as Netflix or Blockbuster.com, and get full seasons of your favorite shows shipped to you.
46.Rent new DVD releases for $1 per night at RedBox.
47.Entertain at home with board games and card games. Get everyone to bring a dish.
48.Get free books online at www.gutenberg.org.
49.Try date night at the public library or local colleges and universities: free lectures, discussions and movie nights.
50.Get a library card. You’ll find free books, newspapers, magazines, music and more.
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"12.Look at your insurance policies — home and auto — and consider upping the deductible for a lower premium. Raising homeowners’ deductible to $500 can cut a premium by up to 15 percent, reports the Insurance Information Institute, a trade group."
I penciled out the difference on my homeowners policy and deduced that unless I got hit twice in any three year period I would save by raising the $250 deductible to $500. That was a couple years ago and then this spring we had losses with back to back severe hail storms less than two weeks apart so there went the (short term anyway) savings.
As a side note that made the total deductible $1,000 on the house (with another $1,250 on vehicles) and FEMA does not help those that are responsible enough to have insurance -- just those that don't bother with coverage. ??? "