In today's
economy, these techniques for saving a bundle are especially timely. The falling market and the
economic uncertainty that comes with it have even the most frugal looking for
new ways to save. Many of the easiest ways to do so may not even require that
much sacrifice.
Right now, there are plenty of
reasons to build savings. For the intrepid, extra cash may mean the ability to
snatch up stocks at bargain prices. Far more people are still shoring up their
personal balance sheets from the last downturn, and another market tumble
reinforces the need for an emergency fund, or to pay down debt. Even for
spenders, there's an incentive to sock away a little more: The down market is
expected lead to sales on many big-ticket items like cars, airfare and
electronics. "It's smart to save wherever you can," says certified
financial planner Sheryl Garrett, founder of the Garrett Planning Network, a
national group of fee-only advisors.
In general, Americans are already
better savers than they used to be. In June 2011, Americans saved 5.4% of their
disposable income, up slightly from 2010 but more than double the 2.4% savings
rate circa 2007. Still, most financial planners recommend aiming higher, to 10%
or so. And while cutting out morning lattes and MP3 purchases can add up,
keeping on track requires serious discipline. Better to aim for the bigger
expenses by reviewing regular monthly bills. A little research and a phone call
or two to can save hundreds of dollars on cellphone and cable service,
insurance payments and credit card bills, says Schwark Satyavolu, co-founder of
BillShrink.com.
Of course, financial experts rarely
advocate against saving. But market swoons to tend to bring out consumers'
thrifty sides. For some help with boosting your monthly savings, here are four
options that won't take more than an hour or two:
Switch Cell
phone Plans . Cellphone users are paying more
-- $92 per month on average for a two-year contract, up from $78 last year,
according to J.D. Power & Associates. And picking the right plan has also
become more complex as carriers add new data plans and require different
packages for different phones. In early July, Verizon joined AT&T in
eliminating unlimited data plans for new subscribers. Moving into a plan that
better fits your calling texting and data patterns could save up to $400,
Satyavolu says. Sites like BillShrink and Va Keegan
Bradley lidas will analyze your current bill and make savings
suggestions, or you can call your provider and competing services. (Some apps
can also help you save on texting or talk time.) But if the best bet seems to
be switching carriers, be warned: early termination fees can go as high as
$350, which could eat up any savings in a hurry. Switching can also change call
quality, so ask friends who use that carrier if they've had problems -- or
better yet, borrow their phone and test for you.
Shop Insurance
Policies . More severe natural disasters and
higher rebuilding costs have led insurers to raise homeowner’s insurance
premiums by more than 7% in many areas over the past year. (Some are
hurricane-prone areas, but not all. Some Pennsylvania homeowners saw premiums
jump 33% last year.) That's reason enough to shop around on sites like Netquote.com
and Insurance.com, checking rates and available discounts. Be sure to call your
current insurer, too, and see if they have any new programs you might be
eligible for, Garrett says. It wouldn't be hard to save at least $200 per year
or more. Last month, Garrett bought new homeowners and auto insurance policies,
cutting her yearly bill by $800.