Savings 101: Five Ways To Save Today

Business Week quizzed financial advisors for tips on how to reduce expenses while boosting savings. Here's our take on the savings tips:

1. Cut Utility Bills
Turn off air conditioning, lower the thermostat when possible, turn off lights and buy efficient light bulbs.

2. Cut Back on Eating Out
Bring a bagged lunch to school or work. Eating out rarely costs less than eating at home.

3. Cancel your Gym Membership
The benefits of a gym membership are only worthwhile if you go often. Run outside instead, walk in the park, or play an outdoor sport with a friend.

4. Force Yourself to Save
Trick yourself into saving more. Setup automatic deposits every month from checking to savings and investment accounts. Over time, increase your automatic savings rate.

5. Take an Off-Season Vacation
Luxury Vacation condos can cost dramatically less during the off season. Go camping, stay with friends or visit a low cost location.

Check back tomorrow. We'll roll out five new savings tips each day for the remainder of the week.

Savings 101 : Five Ways To Save Today

Business Week quizzed financial advisors for tips on how to reduce expenses while boosting savings. Here's a continuation of the savings tips:

11. Get Rid of your SUV
Consider selling your SUV for a vehicle that is less of a gas guzzler. You will save gas and also on your monthly payment by changing your auto loan.

12. Make your own Coffee
Instead of going to Starbucks after mid afternoon, make your own coffee. You could save $20 a week, a good chunk that could be put in savings. If you have to buy coffee, opt for a cheaper beverage.

13. Cut Down your Cable Bill
You can get rid of your movie channels, or even cancel your service entirely. This could save you $100 a month.

14. Bring a List to Warehouse Stores
Wal-Mart, Costco and Sam's Club are great deals, however only buy what you really need when shopping. It's easy to buy in bulk if it's really cheap, but make sure you will use it all.

15. Indulge in Free Entertainment
Check out your public library to borrow books and movies for free. Check your local listings for free shows, concerts, readings and performances.

Check back tomorrow. We'll roll out five new savings tips each day for the remainder of the week.

Savings 101 : Five Ways To Save Today

Business Week quizzed financial advisors for tips on how to reduce expenses while boosting savings. Here's a continuation of the savings tips:

16. Pay Bills and Send Emails Online
Set up your bills so you pay automatically every month online. You will save money on stamps, and avoid late fees. Send emails and you will save time spent at the post office.

17. Go Generic
Most brand-name products are the same as the store-brand. Save money by sticking to the store-brand.. although the label might not be as pretty.

18. Deduct Your Business Expenses
Keep personal and business expenses on separate cards. This will make it easier to be reimbursed.

19. Take Time for Big Purchases
Take time and think about what you want to buy. Research the product, read reviews, and take at least 48 hours before you make the purchase.

20. Buy Used
Don't buy new. Most things aren't worth the extra cost. Cars, books, Apple products and furniture can be bought used at a fraction of their original cost.

Check back tomorrow. We'll roll out five new savings tips each day for the remainder of the week.

Savings 101 :: Tips to help cut your expenses

These eight tips taken from Yahoo Finance will help you cut your expenses without drastically changing the life you want to live:

1. Cell phones
How many minutes are you using a month? Check your plan. Does you plan match up with your minutes? Are you wasting money with minutes not used? Or are you having to shell out unreasonable amounts of money because you talk over your plan? The same theory applies to messaging and extra services. Make sure the numbers match up.

2. Food shopping
Shopping in season can save you money. By spending a little more time each week, you can cut your shopping bill by one-third. Look through weekly circulars and coupons for the best deals. Plan out your dinners ahead of time, according to the prices. And last but not least, don't go to the grocery store hungry.

3. Drycleaning
Handwash wool, cashmere, silk, rayon, polyester, and spandex. Use a mesh bag in the washing machine, and wash on cool in the delicate cycle. Lay cashmere and wool flat to dry. Everything else can be put into the dryer on low heat. Using this method will save you many trips to the drycleaners... and a whole lot of money.


4. Coffee
Cut back on going out for coffee. Invest in a coffee maker, and take two minutes the night before to set it for the morning. By brewing your own coffee, you will save a lot of money. This method will let you buy expensive beans in bulk, for much less. Brewing your own coffee will enable you to wake up to the coffee aroma, instead of listening to your balking alarm.

5. Basic Services
Replace old showerheads with low-flow aerating models, and you will already have saved 25 percent on your water bills. Buy a programmable thermostat. This will save you as much as 25 percent on your energy bills by automatically setting the heat for when you will be home. You can buy a basic programmable thermostat for as little as $23.

6. Habits
Change those old money habits! "The Power of Full Engagement" by Jim Loehr and Tony Schwartz explains that adopting new rituals is much easier than being more disciplined. Adopt new rituals such as saving a $5 bill every day, or putting all of your change into a jar at the end of the day, and cash in every few months.

7. Prescriptions
When filling a prescription, always ask for a generic brand. The generic brand can cost up to 40% less, so make sure you shop around. Discount stores such as Walmart and Target offer extreme savings on prescriptions for asthma, arthritis, diabetes, and high cholesterol.


8. Cable TV
If you pay for premium channels, call your phone company and put your service on "vacation mode." Why? You will still get basic services, but you will save temporarily for the extras. Use these savings for a little extra holiday spending money or stash the money in savings.

Savings 101 : Five Ways To Save Today

Business Week quizzed financial advisors for tips on how to reduce expenses while boosting savings. Here's a continuation of the savings tips:

6. Re-evaluate Your Phone Plan
Maybe you are not using all of your minutes on your cell phone plan. Chop down your service plan to save a lot of money. If you have a land line and a cell phone, maybe only one is necessary.

7. Cut Your Lawn
If you have a yard, start cutting your own lawn instead of hiring someone to do so. Use a push mower for a great work out, or listen to your iPod and ride along.

8. Consolidate Your Driving
Plan out your errands into one trip. You will save gas, and time. You can also walk, bike, or rollerblade nearby.

9. Track Your Expenses
Keep an eye on all of your cash so you know where, and how much you are spending. This will help you take control of your finances.

10. You May Have Too Much Insurance
Raise your deductibles for auto and home insurance, and check your life policy if you don't have any dependents.

Click here for savings tip No. 1-5.

Savings 101 : Five Ways To Save Today

Business Week quizzed financial advisors for tips on how to reduce expenses while boosting savings. Here's a continuation of the savings tips:

21. Get Rid of Investment Charges and Fees
Choose lower-cost mutual funds and index funds instead. This will save you dramatically over the years.

22. Talk to your Friends about Budgeting
Let your free-spending friends know you are on a budget. This way friends won't take your "not today" to heart. Suggest another activity, like an afternoon walk or a free show.

23. Shop with Intelligence
Make a list of the items you need and search for coupons before you shop. There are many great sites to go to for deals, such as Dealhack.com and Bargainist.com.

24. Keep Credit Card "Control"
Be smart with your credit cards. Only use them for emergencies, or make sure you are paying more than the minimum payment each month. Perhaps cut up your card? Some find they spend less on impulse purchases when they use cash.

25. Record your Expenses
Costs can add up really quick. Annualize your expenses, and roughly calculate how much they're costing over a year.

Savings 101: Save water, save money

By making just a few small changes to your daily routine, you can cut down on your utilities bills and your carbon footprint. The average American household uses over 900 kWh of electricity every month, so even simple modifications can make a big difference over time.

Start by washing your clothes in cool water. According to the California Energy Commission, almost 90 percent of the cost of washing clothes comes from heating the water that fills the washing machine. As long as clothes don't have grease stains, they will generally come out as clean in cool water as they would in hot water.

A major cost of running the dishwasher is the energy needed to heat the water to dry the dishes. If you turn off the steam dry feature on your dishwasher, you'll save a significant portion of the cost that it would typically take to run each cycle. By keeping the door of the dishwasher closed tightly for about 20 minutes after the cycle stops, the heat generated by washing the dishes will continue to dry them even though the dishwasher is no longer running. Before putting the dishes away, lightly dry them with a towel or let the dishwasher door stand open and allow the dishes to air dry.

Click here for more savings tips.

SAVINGS 101: Turn $5 into $12,000

High gas prices and stagnant wages are making it harder than ever to save money, but Marie Franklin of the Boston Globe has one trick that allowed her to save $12,000 in under three years.

Every single time a cashier hands you a five dollar bill, tuck it into a separate pocket of your purse or wallet and no longer think of it as money you can spend. Open a special bank account—one that you won’t withdraw from – just for this money.

Franklin suggests that each time you’ve accumulated $50 worth of fives, make a deposit. Without easy access to the money, it will be much less tempting to get off track.

The key to this strategy is to stop thinking about five dollar bills in the same way as the rest of the cash in your wallet. Instead, fives should be considered valid only at the bank — where you can put them into your account, but you can’t take them out.

Another saving tip inherent in the five dollar bill strategy is that in order to be able to stash away any sizable amount of money, you have to make most of your purchases in cash.

This allows you to set self-imposed limits because you can only spend as much as you’re carrying at any given time. In addition, studies have shown that people spend less when they physically have to hand over their money instead of just swiping a card.

Following the five dollar bill strategy, you could find $4,000 a year hidden in the money you already make. What would you do with so much extra savings? In her article, Franklin says people often ask her the same question. Her response: “I have no idea. I'm having too much fun watching it grow to want to spend it.”

--Bridget O'Sullivan

Savings 101: Time to cut out your cable?

Is it time to cut out your cable?

A $70 a month cable bill adds up to $840 a year. That's a nice chunk of cash that could be stashed in the bank, if you're willing to deal with minor buffering issues.

If you do cut your cable, where do you go? Hulu offers free commercial-supported TV shows and movies from NBC, FOX, and many others. Netflix sends you DVDs by mail, and as a bonus streams selected movies via the Internet. You can try Netflix for free, and it's then only $4.99 a month with no late fees. For shows not on Hulu, most of the major networks offer free viewings online. You can also download movies and watch them immediately from iTunes and Amazon, for a small fee.

Cutting your cable may be a money and time saver. Karen Lubensky, switched from cable and uses NetFlix. What does Karen find? "The savings are tremendous. My husband and I watch a lot of movies from Netflix, and I find more time to read, and go to the gym. I now take a sewing class once a week, something I wouldn't have had the money or time for. "

We recommend giving it a try... Maybe cable is something you won't end up missing after all.

Savings 101: Oil, electric and gas cost comparison

Winter is expensive and consumers are desperately on the hunt for the most cost-efficient option.

So which is cheaper: oil, electric or gas? The costs are constantly fluctuating but here are the current prices reported by Nstar, Boston.com, and warmair.net:

Comparing the current costs of oil and electricity in Mass., it is still cheaper to use oil. The average price in Mass. for a gallon of home heating oil is $2.85, according to the Dept of Energy Resources. For gas, Nstar is charging $1.24 per therm (100 cubic feet) and 12.5 cents per kw-hr for electricity. Although electricity is more efficient that oil, it costs more to generate the same amount of heat.

A Boston.com reader reports however, that electricity deserves a second look. "A $30 space heater can make you more comfortable, and save you hundreds of dollars if it allows you to heat only one bedroom to 65-degrees at night, instead of running a gas furnace to heat an entire house or or apartment to 60-degrees."

A study by the University of Massachusetts estimates more than $2,500 to heat the average home with oil, and about $1800 to heat the average home with gas. The U.S. Dept of Energy estimates that electric heat would cost at least 70% more than using oil.

We recommend checking for yourself. Warmair.net offers a great comparison of energy costs, along with the online Energy Guide here.

SAVINGS 101: Go back to the basics with money

Freaked out over the current economic meltdown? Find solace in this 1947 video called "What Is Money?" which traces little Tommy and his spankin' new $5 bill.

SAVINGS 101: Track your expenses on Mint.com

With inflation on the rise, the purchasing power of the average consumer’s dollar is dropping quickly. According to the New York Times, consumers’ disposable income, or gross income less taxes, dropped nearly 2 percent in June alone. Adjusted for inflation, this amounts to about a 2.5 percent drop.

Such a rapid tightening of the economic belt has made careful budgeting even more important than it has been for many households. Budgets, however, can be extremely time-consuming to create. An added challenge is that you often have to know roughly how much you’re already spending on each expense in order to cut back.

There is some good news for the consumer, though, because a new wave of online personal banking technology is making budgeting easier than ever before. Most major online banking Web sites offer a “my portfolio” option which keeps track of exactly where your money goes when you shop with a debit card.

Other Web sites, such as mint.com, are devoted exclusively to personal budgeting. Mint.com allows visitors to keep track of all of their finances including bank accounts and credit cards. The site also allows visitors to see exactly where every dollar goes. Best of all, these services are totally free.

If you haven’t already made an online budget, go ahead and try using one. Chances are, you’ll be unpleasantly surprised at how much you’re paying for insurance, utilities, cable, or your cell phone -- just to name a few expenses.

Find the money burner in your budget and see if Consumer United can get you a better deal.

--Bridget O'Sullivan

Savings 101: Tip to fly for less

Are you sick of paying loads of money to travel by air? Here are four new airline fees... and ways to get around them.

*Beverages
Implemented on August 1, '08, airlines are now charging for soft drinks and bottled water. Paying for a soda seems reasonable. However few consumers are OK with having to pay for a glass of water during a flight, especially since the water on tap is rarely potable.

Solution: Bring an empty water bottle with you through security. Once you are past the security clearance, hit up the nearest water fountain. Bottled water is sold at the airport, but it will probably cost more than on the plane itself.

*Checked Luggage
American, United and US Airways are making you pay for the first checked bag. Their excuse? The rising cost for fuel. According to the CNN report, airlines have been waiting for an excuse to add extra charges for a long time. If fuel costs decrease, the price of a checked bag will most probably stick.

Solution: Continental and Delta Airlines have a free first bag allowance. Try to book a flight on an airline that won't charge you to check a bag. If that's not the case, you could ship your bags, or carry on your bags. Do the math, a $15 charge for a bag might be a bargain compared to what The Postal Service charges.

*Award Tickets
Airlines have added "fees" to award tickets and frequent flier miles, and have raised the number of miles required for free tickets. on August 15, '08, Delta is adding a $25 surcharge for award travel.

Solution: Cash in your frequent flier miles, or use them for something else. Your award tickets depreciate over time, so take the cash.

*Unaccompanied Minors
These fees have always been in place, but the fees are now rising. Alaska Airlines raised its fee from $30-$75. Spirit Airlines raised its fee from $50-$75. Many legacy airlines have raised their fees to $100.

Solution: Accompany that minor this summer. It will probably end up costing the same, and you can take a vacation too. You can also choose an airline with lower fees. Jetblue charges $25 less than big airlines.

SAVINGS 101: More Tips To Save Money

It's time to take control of your money. Here are a few ways to save.

*HYPERMILING

Hypermiling takes time to perfect but is capable of improving your gas mileage.

Use cruise control as much as possible and drive like you do not have any brakes. This may sound absurd, however using brakes lowers your fuel efficiency dramatically. Slow acceleration and non aggressive driving gives you a safe distance and more coasting time before a red light.

Keep your windows up and your tires full. Rolled down windows and low air pressure create drag, lowering your fuel efficiency.

*DOUBLE CHECK RECEIPTS

At a Sunoco Station in New Jersey, Matt's gas receipt didn't match up with the station's advertised price. At first Matt thought there was an extra charge for using his credit card, however that was not the case. It turns out the gas station was overcharging at the pumps, adding on a near 10 cents per gallon.

Make sure you check your receipt and if the charge does not match up with the advertised price, snap a photo. Shady gas stations can be stopped by contacting your city's Office of Weights and Measures.

*ALTERNATIVE TRANSPORATION
With gas prices climbing why not ditch your SUV and grab your bike? Bicycling is an excellent way to avoid gas altogether. Not only is bicycling beneficial for your health, it can get you to work faster than realized. A 30 minute commuter traffic ride may take only 15 minutes by bike. You can swerve through traffic, avoid red lights and you can forget about going to the gym.

*CARPOOL

If biking is not in your playing cards, grab a ride from a friend or a neighbor. You can take turns driving in. This will save you money, help the environment, and give you social time before work.

Other alternative ways to get around: long boarding, public transportation, walking and running.

SAVINGS 101: New Car Buyers ... Wait

So you're thinking of buying a new car. Is now the time?

* Gas Mileage

What is the gas mileage of y our car? With gas prices rising you may want to take this operating expense into heavy consideration.

* When the Bank Owns Your Car

Who owns the car? Do you own your car or does your bank? If you are done making payments on your car, do you really want to start now? What is the actual value of the car? If you sell the car, will you make any money towards a new one?

*Cost to Insure

If you're thinking about buying a brand new hybrid or compact, you may want to think again. It will save you money in gas expenses however if it is a brand new car it will cost much more to insure.

*What to Buy

When it is time to buy, we recommend you buy a slightly used car that has been well maintained and is in good condition. This way you can forget about the depreciation that comes with buying a new car.

Savings 101 : Tips on cutting energy costs

Fall is approaching and energy costs are high. Here are some ways to save on energy and gas.

According to The U.S. Department of Energy, Americans are estimated to spend $2,350 on home energy costs this year. This is $2,100 higher than last year. There are some easy ways to cut costs down and most are pretty cheap, requiring little time.

In order to keep out cold and heat, seal the windows of your home. If you can't afford storm windows, plastic film kits do a good job as well.

Install a programmable thermostat that allows you to turn up the heat or air conditioning right before you arrive home. This will save you money during the day. According to the Department of Environmental Protection, the device saves roughly $180 a year in energy costs. It costs $100 for the thermostat itself.

Be efficient! Buy energy-efficient light bulbs, clean and change furnace air filters, and wrap your water heater. You will save money on lighting because they use two thirds less energy and last ten times longer that regular light bulbs. Your appliances will run more cheaply.

If you lower your water heater to 130 degrees, you can still kill germs with the heat. Do your laundry in cold water. Your clothes will last longer and you will save money in your water bill.

Find more energy savers at Bankrate.com

Recession 101 :: 5 Ways to Save Today

1. Take Care of Yourself
Eat right, exercise, and get plenty of sleep. In a midst of a recession, the last thing anyone wants is a plate full of medical bills.

2. Cut Up Your Cards
How many credit cards do you actually need? According to Reader's Digest, the average American household has 9, but 2-3 cards should be enough. Cut up all unnecessary cards, but don't close down the accounts. Closing an account tells the lender you are using more of the now-reduced line of credit available to you, causing lenders to worry.

3. Save Money on Food
Food is a major expense for all of us. Eating low quality food or starving yourself is not the way to save. Instead, try growing your own food if weather permits. Canning your home-grown food may take a lot of time, however your savings will be high. Ethnic food is usually lower in price, however highly nutritious.

4. Extra Beverages
Cut out all unnecessary beverages. This may seem like common knowledge, but how many of us still buy coffee halfway into the workday? Lattes, Soda, Beer, Bottled Water... these beverages add up fast. Tap water is free, and nutritious.

5. Enjoy a Night In
Going out can be expensive. Instead of going out tomorrow night, enjoy a night of at home entertainment. Rent a movie, browse the Web, read a book, or play a board game with your family.