25 Ways to Save More Each Month

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Three Cheers for Cheapskates

The more we spend unnecessarily, the less money we save for our true priorities and future needs. That's especially important in challenging economic times.

BusinessWeek asked financial advisors for tips on how to reduce expenses and boost savings. Here are their 25 suggestions.

' Article: Three Cheers for Cheapskates

First Up: Money-Saving Tip No. 1

No. 1: Track Every Expense

Financial advisors say the best way to control your spending is to know precisely where all your cash is going each month. There are several options: Make a budget; keep a spreadsheet of all spending; or buy a computer program designed to help manage your finances.

Next: Money-Saving Tip No. 2

No. 2: Vacation in Off-season

Reston (Va.)-based financial planner Frank Boucher says he is taking his beach vacation in early September, when he found a luxury condo for half its cost during July and August. Vacationers can also save by staying with friends or visiting low-cost locations like developing countries.

Next: Money-Saving Tip No. 3

No. 3: Cut Out Investment
Charges and Fees

Jeff Seymour of Triangle Wealth Management in Cary, N.C., points out that many investors end up paying 2% to 3% off the top each year for investing costs. Lower-cost mutual funds and index funds can slash that bill, savings that compound over several decades of investing. Also, save more by taking full advantage of your employer's matching contribution to your 401(k) account.

Next: Money-Saving Tip No. 4

No. 4: Cut Back on Eating Out

Food is a daily expense that can add up quickly over time, so office workers can save a lot just by bringing their lunches to work rather than buying every day. Meals eaten at home almost always cost less than evenings out, even at more casual restaurants.

Next: Money-Saving Tip No. 5

No. 5: Downsize Your Car

Drivers stuck with a gas-guzzling SUV might consider selling it and finding more fuel-efficient wheels. (Of course, that could mean a financial hit given falling prices for the behemoths.) You can save on fuel and also on auto loan payments. High car payments are a frequent budget-buster, financial advisers say.

Next: Money-Saving Tip No. 6

No. 6: Cut Utility Bills,
Especially Electric

Experts are full of advice on lowering electricity and heating bills: Buy efficient light bulbs; lower the thermostat; turn off the air conditioning whenever possible; turn off lights and unplug appliances when not needed.

Next: Money-Saving Tip No. 7

No. 7: Make Sure You Don't Have Too Much Insurance

Life insurance can be a bad deal if you don't have dependents. For auto and home insurance, deductibles are often too low, advisors say. "You can save quite a bit by going from a $250 to $1,000 deductible," says Kirk Kinder of Picket Fence Financial in Bel Air, Md. "Also, shopping these for prices every couple years is important."

Next: Money-Saving Tip No. 8

No. 8: Buy Cheaper Beverages

If you can break your addiction to fancy coffee, the free office coffee can be a money-saver over time. Unwilling to give up out-of-office coffee breaks, some thrifty consumers switch to a cheaper drink at their local Starbucks or other coffee shop. For alcoholic drinks, quality wines, beers, and liquor can be found at lower prices with a little research.

Next: Money-Saving Tip No. 9

No. 9: Examine Your Phone Service

Do you need both a landline and a mobile phone? If you have a cell phone, do you need long-distance service on your home phone? Canceling one line could mean one less bill every month. Many people have phone packages that are too expensive for their needs, so read your bill carefully.

Next: Money-Saving Tip No. 10

No. 10: Cancel Premium Cable

Some penny-pinchers cancel cable service entirely to save $100 or more each month. Others lower their bills by cutting out premium movie channels.

Next: Money-Saving Tip No. 11

No. 11: Drive Less; Consolidate Trips

Think before jumping in the car. By planning and running many errands on the same car trip, you cut your fuel usage. Rather than driving, consider using public transportation, or walk, bike, or rollerblade somewhere nearby.

Next: Money-Saving Tip No. 12

No. 12: Use Warehouse Wisely

Warehouse stores like Costco or Wal-Mart's Sam's Club can be great places to get deals, but they can also encourage over-spending. "Just make sure you go with a list and only buy those things that you are actually going to consume," financial planner Frank Boucher says. "It makes no sense to get a 'bargain' on a bulk item if you are going to throw half of it away."
' Click Here for Tips No. 13 - 25

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Go Beyond the Dollar Store

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