Did you know that the Consumer Reports Money Lab was recently studying ways to cut monthly costs and they are reporting that it is possible for consumers to save up to $500 per month — even when gas and food prices are going up?
Savings shown are Consumer Reports estimates based on what a range of consumers really spend and can possibly save. Actual savings will depend on individual circumstances.
Optimize life insurance — $110
Life-insurance premiums have dropped dramatically since the 1990s. It would definitely pay to replace a policy bought years ago with a new one. Don’t cancel an existing policy until a new one is in place.
Shop smart for food — $200
Making different choices at the grocery store and when eating out can net monthly savings from $130 to $255. The average family of four can cut their grocery bill by $190 a month by shifting to a lower-cost mix of foods.
How to do it: Plan menus around sales of fresh chicken, fish, meat, dairy and produce and be sure to use those leftovers. Stop buying expensive prepared meals. Eat more low-priced, high-nutrition foods such as beans and potatoes. Try out the store brands and sign up for store discount cards.
Stop paying bank fees — $25
Banks collected about $39 billion in account fees and penalties last year. That figures out to about $28 per month per household. With planning, it’s possible to pay nothing.
How to do it: Bank at large institutions that high numbers of ATMs in convenient locations. Shop for free checking and carefully adhere to provisions for a minimum balance, direct deposit or other conditions to avoid monthly fees.
Call up phone savings — $35
It’s possible to net savings from $15 a month for budget callers to $55 per month for heavy users.
How to do it: Look at few months’ phone bills to see how many minutes are typically used on landline and wireless calls. Comparison-shop among cellular service providers, the local phone company and the cable TV company. Don’t buy more service than you need.
Pay off credit cards — $65
Most consumers who carry a balance owe $2,200. This means they pay 15.2 percent in annual interest charges. Cut this and save $28 per month. About 15 % of consumers carry balances of $10,000 or more and they could save $125 per month if they paid off their debt.
How to do it: Stop using your cards and pay more than the minimum required each month until it’s paid off. If you’re strapped for cash use your stimulus check, garage sales or get a part time job.
Find cheaper auto insurance — $65
Many people have stayed with the same auto insurer for 15 years or more. Depending on your individual profile and where you live, you might be able to save hundreds a month by shopping around.
