Save Money While You Sleep

by Galia Gichon on November 26, 2007

SAVE MONEY WHILE YOU SLEEP

My little baby is turning 2 this week. It really seems like she was born yesterday. Even though she won’t remember it, we are having a little party for her this weekend. This article talks about EASY ways to save more money that do NOT HURT and you can do while you sleep. Every budgeting article you read talks about the Latte factor, or not shopping as much but there are other little ways to save more money without even thinking about it and are not hard to do. Just do ONE and you will already be sleeping better at night.

1) Reinvest your dividends. I worked with a client recently who had accrued thousands of dollars in dividends in her investment account. But they were just sitting in her cash account. If she had reinvested them, she would have made more than 10%, which is what her mutual fund earned the previous year. You can do this but just making a quick call to your mutual fund company or investment firm.

2) Fill your tank with regular gas. The car companies say you need premium but most mechanics say you do not. Sure if you drive a brand-new Porsche, you might want to fill up your tank with premium but the rest of us do not need to.

3) Do not bounce checks and sign up for overdraft protection. This has happened to everyone (including me). By having overdraft protection, you can save fees of up to $30 a month. The key is not to start accumulating a balance at 18% or higher interest.

4) Sign up for alert e-mails from your bank. This will help you stay aware of identity theft and low balances. With that being said, I would never respond by e-mail but if you get a disturbing e-mail from your bank, pick up the phone.

5) Another way to save on your cell phone. Depending on the company you work for, you might get an additional cell phone discount. If your plan is with Verizon or AT&T, go to www.verizonwireless.com/getdiscount or www.wireless.att.com/business/authenticate/ to see if you qualify. Won’t cost you a thing!

6) You do not need that extended warranty. Most of us will never use it and do not need it. Plus if your camera breaks down, chances are you will want to buy the latest model.

7) Save on your car insurance. If you have an old car, you probably do not need collision and comprehensive coverage. Shop for a lower rate at www.insweb.com. You can also raise your deductible and keep a bit more money in your savings account earning 4.5%.

8) Do you have a lot of prescriptions? See if your health insurance provider uses a pharmacy benefit manager (PBM). Big ones are Medco or Caremark. By ordering your medicine through them, you can save up to 35%. Plus, no more long drug store lines!

9) Did you get a big refund? I know it seemed nice when that check came in the mail, but it means you paid too much in taxes and you could have kept that money and put it into a savings account at 4.5%. You were actually loaning the IRS money instead of earning money for yourself. If that is the case, you should claim more exemptions on your W-4 form.

10) Do you have PMI insurance? If so, do a checkup and see if your home equity has increased to 20%. If it has then call your mortgage provider and renegotiate your terms and get rid of your PMI.

11) Own your home? If so, apply for a home equity line of credit. It is a great security if you really need it. Do not use it for a new bathroom or plasma tv, but it will come in handy if you really need it!

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