How to Save Money Every Day

There are a million ways to cut costs during a recession. In this article I will discuss a few of them.

Instructions

1. Use a cash back credit card to pay your bills every month. This could add up to hundreds of dollars in rebates by the end of the year. Large purchases that you can pay off relatively quickly will add up to even more.

2. Switch your high-interest credit card over to one offering 0 percent balance transfers, like Bank of America or Discover. Banking online instead of at a traditional bank, using captive ATMs and using direct deposit and automatic bill pay can also save you many types of fees and charges.

3. Moving your stock accounts to a discount or online broker from a full-service broker can save you hefty commission fees as well. Furthermore, many low-cost brokers offer a range of bank-type services such as money market accounts, checks and debit cards, and daily sweeps, often for free or for much less than what banks charge. Moving your mutual funds into no-load funds can also streamline your portfolio performance.

4. Raising the limits on your insurance deductibles within reason is also a good measure, at least temporarily. Jack your collision coverage up from $250 or $500 to $1,000 or $2,500, at least for six months or a year. This can save you hundreds in premiums. Then when the economy turns around, you can lower them back down again.

5. Arrange to work longer and fewer days for your employer if they will allow you. Working four 10-hour days reduces your commuting costs by 20 percent. It also gives you a free day during the week to take care of other business, which might cost you time off the clock to conduct otherwise.

6. Make those little improvements around the house that save you money. Caulk and weatherstrip your doors and windows and keep the fireplace flue damper closed. Unplug unused electronic appliances and use watersaving shower and faucet heads.

Tips & Warnings

• For more money-saving strategies, check out Part Two of this article (see Resources below).

Resources

• How to Save Money Every Day Part Two