10 Strategies to Save Money

MSN Money recently posted an article on 10 strategies to save money; truth be told, it was one of the better ones I had seen in a while. Among their tips are:

1. Kick-Start Your Savings Plan. This can be difficult, but having a savings (however small) to fall back on in difficult times can prevent taking high-interest loans in an emergency, saving you potentially thousands in interest each year.

2. Shop Around for Insurance. This is important; don't assume that since you've been with the same company for five years that you are getting the best discount. Also, be sure to investigate ALL discounts for which you may be eligible through your current insurance provider.

3. Adjust Your Tax Withholding. This I hadn't honestly thought about, though it does make sense. If you come out even (or close to) each tax season--meaning you don't owe taxes and you aren't expecting a return--you are keeping your money in your pocket (and your bank), where it can earn you interest.

4. Pay with Cash Instead of a Credit Card. This is huge, because you will pay interest on all purchases made with a credit card, while cash is always interest free. That said, there all always better options if you choose to use a credit card, which can even benefit you financially in the end.

5. Turn Daily Habits into Treats. This was big for me, when I stopped spending $4 a day on coffee from Starbuck's, and instead  visited maybe once or twice a month, I found I was saving at least $20 a week--a savings of about $1,000 a year.

6. Boost Your 401(k) Contributions. Paying tax on your contributions now (as with Roth IRAs) can save you a lot in the long run. Just think of what the tax rate will likely be in 10, 20, 30, or 40 years when you reach retirement age!

7. Make Savings Automatic. This is a biggie for me and my husband; we have $20 each month automatically transferred from our checking account to our savings account. While it is minimal, it is still earning interest in savings and adding to what we have saved up for emergencies or a rainy day.

8. Take Care of Yourself. Love this one! I'm a big proponent of wellness checkups and dental cleanings, both of which are often free under health and dental insurance (as they are considered preventative care). Even if you have a co-pay, a $25 or $30 doctor's visit is far better each year than a $15,000 stay in an emergency room for a problem that went undiagnosed. These preventative appointments also help keep premiums down for your employer (if that is where your insurance originated), the savings of which can then be passed on to you and your co-workers.

9. Raise the Deductible on Your Insurance. I'd say to be wise about this one, and do what is right for your particular financial situation. While having a higher deductible on your insurance will lower your monthly premium, it also means that you pay more for an accident. In my case, where I know my savings is small, I'd rather have a $250 deductible (which would be easier for my meager savings to handle) than a $500 or $1,000 deductible, even if it means I spend an extra $10 each month.

10. Change Your Lightbulbs. CFLs (Compact Fluorescent Lights) pack a punch in terms of energy savings. And now is a wise time to start switching over; with regular bulbs being phased out in the next couple of years, they will become unavailable, and many retailers are offering low prices (as low as $1 a bulb in some cases, like Excel energy has done in my area) to entice consumers to make the switch. Also, since a CFL can save you $50 in energy costs over its lifetime,  you could be looking at a savings of $1,500 or more (over the next year or two) when you make the CFL switch.

You can read the full article and view the slideshow here.

How to Save Money on Your Holiday Travel

The pumpkins have been put away, the trees are letting loose their leaves of gold and red, and the clouds threaten their first snow: it's officially the holiday season, when we often travel to spend time with family and friends.

Regardless of how you get there (by plane, train, or automobile), holiday travel is expensive. Here are some ways save when planning your holiday travels.

If flying:
There are many ways to cut back on airline expenses, including:

• Use a rewards program. Using a rewards program or frequent flyer program can get you a return on the money you spend on airfare.
• Be flexible in your dates. Oftentimes, you can snag better deals when you stay over the weekend or avoid the busiest travel days (such as the day after Thanksgiving).
• Plan ahead. You can usually save a great deal of money by booking far in advance of your travel date.
• Consider a connecting flight. Though often a pain, flights that have a connection between your departure city and arrival city will generally be cheaper than those that fly direct. 
• Be familiar with fees. Many airlines charge hefty fees for checking bags, among other things. If you can travel with a small bag that can be carried on the plane, you will save yourself upwards of $30 per flight. Familiarize yourself with the carry-on regulations for each airline you are considering and pick the best fit. If you do choose to carry on a bag, make sure it falls within the airline's size and weight regulations.
• Compare rates. By comparing the rates listed by various airlines, you can select which has the lowest airfare and related fees. Additionally, using a site like Expedia or Travelocity compares rates for you, and you can also save money with these sites by bundling hotel and car rentals into your travel package.
• Use social media. By following different airlines, travel agents, or travel sites via Twitter or Facebook, you can be notified of the best deals as soon as they are available.

If driving:
Gas is (in general) the biggest expense when driving long distances. Here are a few ways to save on gas and other car-related expenses during holiday travels:

• Plan ahead. Planning your route ahead of time can help you map out major cities where you can fuel up (gas is often less expensive in larger cities than their surrounding rural areas, due to supply and demand. Better to fill up for a cheaper price in the city than be forced to pay more forty miles out when you run out of gas).
• Use price comparison websites or apps. There are several available apps and websites (including GasPriceWatch.com) that will tell you the price of gas at several nearby stations.
• Beware gas stations nearest the highway. Gas is often most expensive nearest a highway exit/entrance, as you are paying for the convenience of not having to search out another station further into town. That said, if there are two or more stations very close to each other (even near a highway exit), you will likely get a good price because of the competition.
• Perform necessary car repairs. Even small things like changing your oil can save you big money on gas mileage; the harder your car's engine has to work, the less fuel economy you will have. 
• Use the cruise. Assuming road conditions permit, using your car's cruise control will keep your car at a perfectly steady speed, increasing your gas mileage (and reducing the likelihood of leg cramps).
• Get cash back. If you use a credit card, consider using one that provides points or cash back on fuel purchases. See my list of the 6 best credit cards for rewards for more information.
• Bring your own snacks. Packing a cooler with water, soda, and snacks will not only satisfy everyone in the car (so you're less likely to hear cries of "I'm hungry!" coming from the back seat) but you'll also save money by not making impulse stops at fast food locations along the way. Bonus? The snacks you bring are very likely to be much healthier than what you'd find at a drive through.

If taking the train:
I will admit upfront, the only trains I've ridden were scenic. That said, I do know that there are some great deals to be had if you decide to take the train for long-distance travel.

• Look for discount codes. According to TrainTicketUSA.com,  Amtrak often provides discount codes online for their fares. Doing a bit of research ahead of time could save you some cash.
• Book in advance. Just as with airfare, the best deals are typically to be had well in advance of your departure date.
• Bring your own snacks. As with driving and flying, bringing your own food will be cheaper than purchasing what is offered during your trip.
• Take advantage of deals. According to eHow.com, Amtrak offers discounts to AAA members, senior citizens, veterans, students, active military personnel, children, and others. Like using these discounts in other places, you will likely need to ask for it up front.

Safe and happy travels!

10/14/11: Friday Roundup: Links I Loved (and Shared) This Week

Every Friday features a roundup of links that I've found during the week and that I'm loving! These links are generally frugal in nature, but they will also be eco-friendly and just generally fun. Check back each Friday for that week's batch of great links.

• I'm not a big outlet shopper; I prefer thrift stores and GoodWill, but these tips can easily be applied to any thrifty shopping experience. From Good Housekeeping, here are 7 Ways to Save More at Outlets.
• Halloween is right around the corner, and it can be an expensive adventure, especially for those of us with kids. Get Rich Slowly blog has some great information on how much we generally spend on Halloween, and some tips to enjoy the holiday on the cheap.
• Everyone enjoys free stuff. Here is a list of the Best Retailers for Free Samples.
• The cost of living varies greatly from city to city, community to community. Forbes Magazine gives us a list of the 10 Best Places to Live, where the cost of living is relatively inexpensive while the communities are safe and thriving.
• I love drugstores; my husband will confirm that I can get lost for hours at a time in CVS. Here are 30 Drugstore Deals Under $10.
• And lastly, a new sweepstakes from Better Homes & Gardens! Enter now to win $25,000 in the Switch and Save Sweepstakes!

Be sure to check back next Friday for another great batch of links. Have a great (and safe!) weekend, everyone!