New Years Cost Cutting

As a nation, we annually waste billions of dollars on uneaten food, over priced clothes, unused, unnecessary items, uncompetitive savings account rates and excessive credit cards interest. American consumers throw away money as never before and the credit card bills roll in with their record of excessive Christmas spending. This makes January a perfect time to start putting your personal savings finances in order.

I know that I find something freeing, almost liberating about spending money away on treats for myself. It can be something as cheap as a pad of notepaper with some fancy design on it that costs $5, or as expensive as staying at a hotel room instead of driving two hours home after a conference. However, there is no reason why people who save their money should accept miniscule interest rates or sky- high credit card interest charges.

Spending a few minutes now to find a better deal will leave you better off by December 31. Leaving things the way you have left them in the past is like setting fire to your own money. By making a few changes to improve your accumulation versus your spending will make it so that the odd taxi home, the takeout chicken or spontaneous clothing purchase will not have a dramatically negative effect on your bank balance or credit card debt."

Here are 10 easy ways to save money in 2005 and every year beyond.

1 SAVES ON FOOD

Healthy eating doesn't have to be expensive. Making your sandwiches at home and taking them to work might cost you $3 a day if you really go all out on the fixings and drink. Buying a sandwich, drink, and chips at Subway or McDonalds and you've dropped $5 - 9 plus ingested more calories, fat, and preservatives than is healthy for you. If you cut $2 a day out of your spending, and weekly or monthly put that money into a special account at your bank or freezer, you will have $10 a week, $40 a month, $500 a year. Maybe that is your Christmas present fund?

Slash supermarket bills by making a shopping list and sticking to it. Avoid picking up the over priced "bargain" extras placed at the end of the aliases where they can tempt you. (Tip: Leave the kids at home when you grocery shop.) Give the store's own brand a try, their value ranges can cost a third the price for name-brand items and contain the same nutrition. Buy fruit and vegetables in local farmers markets in season - prices are competitive, you know the people who grow the food and you get to be outside for a bit of fresh air. Make your meals at home and freeze portions for future meals. Often times the home cooking is lower in fat, sugar and salt than ready-to-eat meals and having the food in the freezer, ready to thaw will reduce the temptation to by over-priced takeout.

2 SAVE ON DAILY SPENDING

Take a good look at what you really use. Do you have a gym membership that you only visit occasionally but seem to renew every year? Do you take the bus or taxi to work? Save a few dollars and get in some free exercise by getting out a couple blocks early. Leave the ATM machine card at home, and when you do use it, take less money out than you normally do. It's harder to waste the money if you don't have it in your pocket. Join the local library - you'll spend less time in bookshops. Shopping for purchases can also save money - many major stores offer a price promise matching any advertised price.

3 MORTGAGE SAVINGS

Penny watching will save a small fortune over the years, but taking the trouble to find the lowest over-all cost mortgage available can also save a small fortune. If you can recoup your costs through a lower interest rate in less than 2 years, go ahead and refinance, over the long haul that lower interest rate can save you some real change.

2003 provided the lowest interest rates in 50 years, yet many homeowners failed to switch to a cheaper mortgage rate. 2004 was also a year of decent interest rates; yet many homeowners are still paying too much interest. Instead of simply writing a check next month looks into the possibility of refinancing.

4 CUT HOME INSURANCE COSTS

Cutting home insurance is also easy. Identify the level of coverage you need and then shop around to find the lowest premiums based on that coverage. If you are willing to self insure more than the standard $500 deductible - that is pay the first $1,000 or $2000 of a
Loss - you will find significant savings in the annual rate. Just beware, that many of the small things like broken windows, a few shingles off your roof will not be paid by the insurer because they cost below that $1,000 deductible.

Some companies also offer lower premiums to members of a neighborhood watch or to the people with extra security. Good quality locks, alarms, and security systems deter break-ins and some insurers discount for that. Don't forget your outbuildings when looking for insurance coverage. Many of the items in your garden shed are expensive to replace if they disappear.

5 CUT CAR COSTS

Your car can be expensive to operate. Fuel, maintenance, and insurance can cost per mile more than the current 37.5 cents the IRS says vehicle costs to operate. Depreciation can total nearly 60% of a new car cost in the first 2 years. Keeping your tires properly inflated the filters clean and the starting and stopping to a minimum will increase your mileage and decrease expenses.

Using the Internet will help you cut your insurance costs dramatically if you go online to shop for a better insurance rate. Another thing that will help with your insurance fee is keeping your driving record clear of moving vehicle tickets - don't speed.

6 SAVE ON UTILITY BILLS

Depending on where you live the deregulation of gas and electricity means suppliers have competition now and deals are available if you go looking. Consumers stand to save nearly a third of their gas bill if they live in areas with competition and are willing to shop around and ask for the savings.

You can save even more with energy-saving measures like drawing the curtains at dusk, turning the TV off rather than using standby, buying energy-efficient light bulbs and turning the thermostat down just one degree, at night or while you are away during the day. When you go to renew your cell phone - shop around. The act of Congress mandating the option to take your phone number with you has proved many cheaper rates and more incentives to get you to switch from one carrier to the other.

7. LIFE INSURANCE

Life insurance rates have fallen the last few years, especially for the term rates. At a minimum buy enough insurance for your spouse to be able to live without employment until the kids are old enough to go to school. Get on the Internet and search for the best rate you can find. You won't even have to deal with an insurance salesman.

8 SAVE ON CREDIT AND BANKING

Credit is a way of life today, and many of us are paying through the nose for trillions in unsecured personal borrowing on credit cards. APRs can reach almost 25 per cent for in-store credit, and many struggles to pay the interest, adding punitive years to the borrowing
Term.

Instead look at low-cost loan to consolidate debts, or a new credit card with an introductory rate of zero per cent on purchases and balance transfers. You can even switch your borrowing from one card to another as the free introductory rate expires. The key is to hold your payments level, even as the minimum required drops. Doing this
Will cut 20 years off most repayment times.

Competition means better banking deals, though you might need to find a small bank to get the best rates of interest or lowest cost for services. Always pay attention to what your level of service is going to cost you, what does a box of duplicate checks cost, and if
You accidentally bounce a check what are the overdraft charge and how much you'll be charged to receive a copy of your paper checks.

9 INVESTMENTS

Always make sure you are getting the interest rate you deserve for whatever savings you've got. The rate will depend on your level of comfort dealing with the Internet, telephone banking or if you need a live person to deal with. Online banks offer a higher interest rate because they have less overhead costs than a brick-and-mortar bank
Staffed with live humans.

Check rates regularly - banks tend to be slower to raise their payment rate than when raising the cost of borrowing. Don't forget to max out your IRA, 401k, or whatever savings vehicle you have that is tax deferred or tax-free.

10 CUT TRAVEL COSTS

Using a website like www.travelocity.com can mean you save a lot of money when buying a package deal. The savings can be really huge if you are willing to shop online at the last minute. Shop around for reasonable priced travel insurance - an annual insurance policy may be cheap if you take several trips a year. Try to fly an airline that is not in bankruptcy trouble so you can be confident they will probably still be in business when you need to travel.