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©Today,
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Looking for ways to make your dollars really count? (Who isn't?) We've lined
up a panel of experts to dole out advice on how to keep from stretching
yourself financially thin. Here's how to save when it comes to eating,
heating your home, filling up the gas tank and entertaining your family.
How you can save with financial planning
Expert: Sharon Epperson, CNBC anchor and
author, “The Big Payoff”
Hire a financial adviser, by the hour or as
needed
You may actually be able to get the advice you need for free. Big no-load
mutual funds, like T. Rowe Price, will offer anyone free assistance in
deciding which assets to choose and how to diversify them in their 401(k) or
IRA. If you’re a “do it yourself” type, you can also log on to
Morningstar.com and check out the tools they offer to help with 401(k)
planning. Or, for $40 a quarter or $150 a year, FinancialEngines.com will
tell you which specific mutual funds you should choose for your 401(k) or
IRA based on your risk level and retirement goals.
For those who have a more complicated financial situation — several
retirement accounts, debt management concerns, college planning needs — it’s
wise to hire a financial adviser. But you don’t have to go broke. Garrett
Planning Network has 290 advisers, most of whom are certified financial
planners, who will work with you on an hourly basis (about $180/hour on
average).
Just starting out with little money invested outside of a 401(k)? You’d
likely only need an hour of the adviser’s time — which will cost you $150 to
$300, depending on where you live. A more complicated analysis for someone
with several IRAs and 401(k)s could run about $500 to $800. Considering that
by doing nothing, your portfolio could lose that amount in one day — it’s
probably worth the investment to make sure you’re on the right track.
Buy stocks — a little bit at a time
Don’t walk away now. The sale is on and you don’t want to miss it. U.S.
stocks are down 10 percent on average so far this year. Blue-chip companies in the
Dow Jones Industrial Average are 15 percent cheaper than they were in October. If
you saw a sign that said “10-15% off” for the flat-screen TV you’ve been
longing for or that designer bag, what would
you do? Probably buy it, right? When it comes to stock investing, you’re
really stretching your dollars in a down market. You’re able to buy more
shares of stocks or mutual funds now than you would have been able to a
month ago, with the same amount of money. Start now with $50 a week. A
35-year-old who invests $50 per week until she’s 65 will have $515,000 to
spend over her retirement. Can’t figure out how to spare $50? Think about
the half a million you’re giving up if you don’t do it.
Lower your mortgage payments
Mortgage rates were already falling before the Federal Reserve’s emergency
cut of ¾ of a percent. So if your rate is 6.25 percent or higher for a
conforming loan ($417,000 or less), you should be talking to your lender and
trying to get a lower rate — particularly if it’s an adjustable rate
mortgage. Rates on 30-year fixed rate loans have dropped to 5.49 percent on
average from 6.18 percent a month ago, according to the Mortgage Bankers
Association. Rates on one-year ARMs have fallen from 6.5 percent last August to
about 5.5 percent now. If you have an adjustable mortgage, lock in a fixed rate
now. If you have a $165,000 loan — reducing your rate from 6.5 percent to 5.5
percent
could save you more than $100 a month ($106.06) — more than $1,200 ($1,260)
over the course of the year.
Add funds to a money market account
Although it’s important to stick to your investment strategy, it’s hard to
watch your stocks and mutual funds lose value. So it’s comforting to know
that at least you're building your savings in case you lose your job or have
a medical emergency. You don’t want to tap into a long-term investment. You
want quick cash. Money market rates are likely to fall considerably in light
of the Fed rate cut. Still, you can definitely find money market yields of
four percent or higher, which is considerably higher than your return on stocks at the
moment.
How you can save at the pump
Expert: David Champion, director of
automotive testing for Consumer Reports
Easy does it
Driving smoothly and steadily makes the best use of your fuel. If you can,
avoid hard acceleration or braking. Once up to speed, maintain a steady pace
in top gear. Varying your speed a lot wastes fuel. A vehicle’s gas mileage
decreases rapidly at speeds above 60 mph. Smooth acceleration, cornering and
braking not only save fuel but also extend the life of the engine,
transmission, brakes and tires.
Get regular fuel
If your car specifies regular fuel, don’t buy premium under the mistaken
belief that your engine will benefit. Most cars are designed to run just
fine on regular gasoline. Furthermore, many cars that recommend running on
premium fuel also run well on regular. Check your owner’s manual to find out
if your engine is designed to handle either grade. And consider buying
off-brand gasoline, which is most often identical to what is sold at
franchised gas stations.
Watch the tires
Keep your tires properly inflated. Underinflated tires require more energy
to roll, which not only wastes fuel but also wears the tires faster.
According to the EPA, a tire that is underinflated by only two pounds per
square inch can cause a one percent increase in fuel consumption. Underinflated tires can also build up excess heat, which can lead to tire
failure. Check your vehicle’s tire pressures at least once a month, when the
tires are cold. Also, check the tires before and after long road trips. The
recommended tire pressure is found on a label inside the car — usually in a
doorjamb or inside the glove-box lid.
It’s a drag
At highway speeds, more than 50 percent of engine power goes to overcoming
aerodynamic drag. Try not to add to the drag by carrying things on top of
your vehicle. A loaded roof rack can decrease a car’s fuel efficiency by 5
percent.
Even driving with empty ski racks wastes gas. In addition, if you have air
conditioning, use it only when you really need it. Running the air
conditioner robs power from the engine and uses additional fuel.
Stay warm
An engine runs most inefficiently when it’s cold. It not only uses more fuel
but also creates the most exhaust emissions and suffers the most wear. Avoid
many short, separate trips — and unnecessary cold starts — by combining as
many errands as possible into one trip.
How to save on cooking costs
Expert: Dede Wilson,
Bon Appetit magazine
Are your family's food costs sky-high? How do you feed a family well and
still stay on a budget? The answer is to buy seasonal — and local, if
possible — ingredients that will not only be fresher and better for you, but
will be easier on the budget as well.
Save on dairy products
Milk and other dairy is very expensive these days. Taking advantage of what
is on sale is one approach. Also, look for milk from local dairies at
greenmarkets; even some larger supermarkets are carrying local milk and milk
products. The fact that it is produced closer to home reduces transportation
costs and it will be a fresher, better product.
Buy in-season produce
This time of year, look for root vegetables, such as parsnips and turnips,
greens such as fennel, escarole and broccolini, citrus of all kinds and even
pears. These items will be fresher and cheaper because they are in season.
This is not the time of year to make a blueberry pie. Make a pear crisp
instead. Or simply toss tangerine segments with pomegranate seeds (also in
season).
Don’t buy the first fruits you see
When you enter the produce section of the supermarket, don’t settle for the
first display of oranges that you see. Supermarkets want to sell you the
items that are going to make them money, not necessarily the ones that are
freshest, tastiest or less expensive. Go around to the back of the display
and there very well may be less expensive oranges that are even fresher or
more interesting varieties.
Shop smart when it comes to meat
When buying meat, look for less expensive cuts, such as chuck roast or top
round for beef, or pork shoulder for pork. All of these, by the way, are
perfect for slow braises and pot roasts. Buying a larger amount at
a time can save money too, and many stew recipes can double easily and be
frozen for leftover meals. Have pot roast with creamy root vegetables right
now; serve it with filling and inexpensive pasta or mashed potatoes the next
time.
How to save on your heating bill
Expert: Brandon Russell, TLC’s “Trading
Spaces”
Use a programmable thermostat
This is a cheap investment that gives great potential for cutting costs. You
can set the heat to only come on an hour before you wake for work and get
your family ready for the day. Let the temperature drop down while you are
away for the day and then have the temperature rise again around 5 p.m. to
an hour before you go to sleep and the temperature will drop while you
sleep. This is a great way to cut down on wasted heating while no one is at
home. These are easy to install yourself and can be picked up at a local
home improvement store such as Home Depot.
Use ceiling fans
Install ceiling fans in bedrooms and living rooms, and make sure they have a
reversible setting. In the winter months, change the setting to pull the air
up and this will help in recirculating the hot air that rises and
redistribute it around the room to feel much warmer. In the summer months it
can be reset to provide airflow to cut down the costs on cooling the home.
This helps cut costs year-round.
Weatherproof your home
One of the least expensive energy-saving tips is investing in materials such
as a caulk gun and weather-stripping and weather-proofing all of your doors
and windows. It has been estimated that all the leaks that are present
around doors and windows in most homes is equivalent to leaving a window
open. So for a small amount of money you can seal those leaks and cracks and
shut that mystery window.
Check your insulation
Check that your attic and walls are properly insulated. If the attic is not
properly insulated your energy bill is literally going to be through the
roof. (No pun intended.) If you're a DIY-type, you can buy roll-out
insulation or, to cut the costs substantially more, you can rent an
insulation blower machine and purchase the recycled paper insulation that is
fire retardant and environmentally safe. This will not only help you save on
your energy bill, but is also better for the planet.
The devil’s in the details
It's the little things that add up to big energy cost cuts. Try things like
adding a blanket to your hot water heater: This keeps the water from cooling
too quickly and wasting energy to constantly heat it. And simply changing
your air filters to ensure proper functioning of your furnace or heat pump
can help, too. Also, open the blinds or curtains on the sunny side of your
house and take in the free heat of the sun. Close the blinds or curtains
once the sun has gone down. Close the vents on the house if you have a crawl
space. This will keep unwanted cold air from coming in under the floor.
How to save on entertainment costs
Expert: Robyn Moreno,
Woman’s Day magazine
Search online for deals
From mommy blogs to local tourism offices, great deals
abound. Sign up for newsletters with your local cultural center or movie
theater and be the first to know about discounts and upcoming special
events.
You don’t have to avoid restaurants to save
money, just know when and where to go
A number of high-end restaurants are beginning to create expensive menus for
diners on a budget. Guests have the opportunity to experience the same
delicious food with a much more affordable price tag with “restaurant
weeks.” Usually occurring twice a year in winter and summer season, many
high-end restaurants offer prix fixe meals for a deep discount. Search
online for a restaurant week in your area.
Another way to hit up a trendy restaurant year-round is to make it a daytime
affair. If you’re hankering to try out the new hot spot, but hesitant to
drop a lot of cash, trade in a Saturday night for a Sunday afternoon and
enjoy a brunch instead. Many brunch places offer a deal that includes Bloody
Marys or mimosas, so you can still have fun and check out the cool
environments, but at a fraction of the cost.
Money-saving movie ideas
To save money at the movies, Costco offers members super-saver movie tickets
for several large theaters such as AMC, Cinemark and Regal Entertainment.
Discounted group tickets save $2.
AMC Theatres also has a fun program called A.M.Cinema, where morning guests
have the opportunity to see first-run movies at their best ticket price of
the day before noon on select Fridays, Saturdays, Sundays and holiday
periods at all AMC locations in the United States and Canada. Guests can enjoy ticket
prices of $4, $5 or $6, depending on the theatre and the market, and at all
locations the price is lower than the child’s price!
Contact convention and visitors bureaus
Next time you travel, especially with a group (like for a reunion or
wedding), contact the city’s convention and visitors bureau. They can often
send out a lead to hotels and find out the best room rate for you. Most
people don’t think of the CVB, but they can save you time and money.
You can also discover your own backyard. Instead of hopping in the car for a
weekend away, strap on your walking shoes or hop on your bike and discover
neighborhoods in your own city. From architecture tours to scenic bike
routes, many cities offer free excursions that allow you to affordably
explore your town and get some exercise in the meantime. If you prefer to
stay away from groups, you can also download maps and forge your own trail.
Game on
This Friday night, stay in with family and friends and let the
games begin. Monopoly has an updated version, the “Monopoly Electronic
Banking Edition,” with an all-new debit payment system. Each player receives
a Monopoly debit card and starts off with $15 million and keeps track of their
balances, a great way to introduce kids to the world of finance. Visit Hasbro.com for more information.
Another hugely popular game is the Cranium Whoonu — Dakota Fanning is a fan.
The fun-filled “What’s Your Favorite Thing?” Cranium Whoonu is as fun to
play as it is to say. This exciting game is loads of fun as players guess —
and celebrate — each other’s favorite things. Dad likes karaoke better than
college football? Your best friend likes hip-hop better than flip-flops?
Whoonu! The goal of the game is to win the most points by correctly guessing
each player’s favorite things. Fun for kids and adults. Visit Cranium.com
for more information.
Get cultured
Most museums offer a free day or evening, so find out when it is and take in
some art with the family. Attend art openings at galleries — they are
usually free to public, serve up wine, and offer you an opportunity to
expand your art knowledge by talking to the artist firsthand.
Host a tasting party
More posh than a cooking club, and more fun than a book club, holding a
tasting party is an affordable way to learn about food and wine. From
high-end tequilas to artisanal cheeses, have guests pitch in and bring
items, download info from the Internet, and learn to discern the nuances of
a 100 percent Blue Agave tequila, or compare the differences between English
and Vermont Cheddar.
Travel off-the-beaten path
Forget bustling Napa. Wine connoisseurs can head to idyllic and not-crowded
wine and spirits destinations, like the tranquil Texas Hill Country —
located just outside of Austin — which is the fifth-largest wine-producing
state in the country and the No. 2 destination behind Napa/Sonoma for wine
enthusiasts. The area is home to world-class varietals and free tasting
rooms. To learn more about Texas wines, just go to www.gotexanwine.org.
Another hot spot is the historic Bourbon Trail, located only 30 minutes
outside of Louisville; the bucolic region boasts seven distilleries that are
open to the public for tours and tastings. Besides serving up top quality
whiskey, the area also offers visitors a riveting lesson in American history
as well as the ethereal pastoral landscapes. Visit
www.kentuckybourbontrail.com
Always ask about discounts
Many discounts are offered to students, senior citizens, or military
personnel and families at movies, theaters and theme parks, and often aren’t
posted or listed, so don’t hesitate to ask.
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