Today’s topic is WAYS TO SAVE.

You have two types of expenses - fixed expenses and discretionary spending.  Let’s talk about fixed expenses first.  Not all of those are as fixed as you think.  While you probably can’t do much about your rent, there are ways to lower other expenses.

• TAX REFUNDS ARE NOT A GOOD THING!  If you squeal with glee every year when you get that fat refund check, stop now.  You’re giving the government an interest-free loan.  Rather than letting them hold onto your money, you hold onto it yourself in your online savings account.  If you get a large refund every year, you should adjust your withholdings so that less is taken out of each paycheck.  Funnel that money directly to savings because you can’t miss what you never had.  The IRS withholding calculator IRS withholding calculator will tell you how much you should be withholding and PaycheckCity will tell you approximately how much your check will be once you change your withholdings.

• Eliminate unnecessary features on your cellphone and home phone.  Do you really need *69 and 2000 anytime minutes?  Sure it may only save $5/month but all those little $5/month’s add up.  Wouldn’t you love to have $50-100/month extra just by putting forth a little effort?  Also, if you work for a large company like I do, you may be eligible for employee discounts.  Most of the cellphone companies will give 5-10% off just for being an employee.  And while your’re at it, cutback on the cable.  Do you really watch HBO, Showtime AND Cinemax?  Probably not.  Maybe stick with just HBO and save $20/month.

• Save money and the environment.  Make an effort not to waste water, electricity or gas.  Stop running the dishwasher and the washing machine half full.  Invest in programmable thermostats if you have high utility bills.  Also, don’t believe the hype.  You really don’t need a capful of detergent and a whole sheet of Bounce for every load.  Try using half as much.  I promise your clothes will be just as clean and just as soft and you’ll save money to boot.  Stop running all over town everyday too.  Combine your errands into one or two trips per week.  You’ll save time, money and wear and tear on your car.

• Are you getting the best rate on your car insurance?  If you haven’t done so lately, get online quotes from a few different companies to see if you’re getting the lowest rate you can.  Also, re-evaluate the coverage you have.  If you have an old beater that’s only worth $1000, it’s probably not worth it to have full comprehensive and collision.  Drop back to just liability coverage and save the difference.  Are you being charged for gap insurance?  Unless you’re upside down on your car loan, you don’t need it.  Drop it and save the difference.  Another cost-saving meaure is increasing your deductible if it’s below $1000.  Also, consider taking a defensive driving course.  This will lower your premiums as well.  Courses can be taken online for as little as $45 and an hour of your time.  I don’t have the link offhand but post in the comments if you want the link to the course I took.

• Credit card companies will help you if you ask.  I hope you don’t have credit card debt, but if you do, there are ways to ease the pain.  If you always pay your bill on time, call and ask the card company to lower your interest rate.  Most times they will.  If they won’t, call back in three months and ask again.  You can save hundreds of dollars a year in interest payments just by making a phone call. 

That’s all for now.  Tomorrow’s post will be about saving on discretionary spending.