10 Money Saving Tips to Stretch Your Budget
Whether the current economy has you earning less or worrying more there are ways to cut your budget without feeling much pain.
BY BRETT GRAFF
SPECIAL TO THE MIAMI HERALD
Whether the current economy has you earning less or worrying more there are ways to cut your budget without feeling much pain. Here find 10 money-saving strategies to help you lead a full — but financially leaner — life.
1. Buy only on-sale produce. Unlike day-old doughnuts on-sale fruits and vegetables are often the store’s finest picks. Produce prices are frequently at the mercy of weather conditions which can unexpectedly produce bountiful harvests. When crops are abundant growers will strike deals with retailers selling them more product at lower prices explains Gary Lucier an economist at the U.S. Department of Agriculture.
2. Team up for transportation. Gas prices go up they go down but they never go away. Cut your commuting costs in half by carpooling to any driving destination. It worked for Paul Woehrle senior director of development for New World Symphony. The Oakland Park resident found another Broward County-based colleague to split with him the costs of driving some 37 miles to their Lincoln Road office. ”We’re both saving money and there’s less wear and tear on your car” he says.
3. Refinance your mortgage. If you bought your property six to 24 months ago — or are paying an interest rate of 5.875 or higher — then refinancing would likely slice your housing costs says Neil Stein vice president and loan officer at WCS Lending in Boca Raton. The recent dip in mortgage rates might mean a monthly savings of $78 (or $938 a year) for every $100000 you owe — even with the closing costs which can be financed he says.
4. Turn off cable channels. Some pricey packages from Comcast include 312 cable channels that cost $82.99 a month. No one — at least in this article — is going to argue against crystal-clear reception. But do you really need 310 more channels than you have eyes? Probably not. Comcast offers 21 channels for $10.46 a month. Direct TV will supply 50 channels for $29.99.
5. Get high culture at no cost. ‘Tis the season to stroll through Miami’s museums most of which offer free admission at least one day each week. The Museum of Contemporary Art I North Miami waives its entrance fee on Tuesdays and The Holocaust Memorial and the Frost Museum at Florida International University are both free seven days a week.
6. Dial up the phone company. Since 2000 land-line long-distance charges have actually fallen 13.2 percent according to the Consumer Price Index. If you haven’t seen the same in your bill it’s time to shop around.
7.Turn upthe thermostat. If you reach for a sweater because the air-conditioning is blasting be ashamed. Be very ashamed. Remember: You’ll save 5 percent on your energy bill for every two degrees you raise your cooling system according to Yanet Obarrio Sanchez at Florida Power & Light. This is Miami people. Wear light-weight linens sleep with only sheets and set the temperature to match that attire.
8. Shop around for insurance. Don’t automatically renew each year the insurance policies protecting your car or home says Oscar Seikaly managing partner at NSI Insurance Group in Miami Lakes. Sure another company might offer competitive rates but also life might change for the cheaper. If your car-sharing teenager leaves for college premiums will plummet. Meanwhile home improvements — such as new hurricane shutters — could shave yearly costs by $5000.
9. Take the IRS’s help. If paying the government this April was a burden try lightening next year’s tax load by noting each month some commonly forfeited deductions suggests Lisa Grossman a CPA and senior manager at Kaufman Rossin. For example sales tax from major purchases — cars boats appliances — can be deductible. Also record even the tiniest donations. ”Little contributions add up” she reminds us.
10. Cook for yourself. ”It saves time and money” says Heddy Goldsmith a pastry chef at Michael’s Genuine Food and Drink in Miami. Her favorite meal deal: dry garbanzo beans. Costing under $1 the beans are soaked overnight in water drained and finally boiled in chicken stock. ”They last a week and are great with soups salads or on rice as a main course” she says.
Brett Graff a former U.S. government economist also writes The Home Economist series about how economic forces affect real people. She can be reached at brett@ thehomeeconomist.com.
Lisa Grossman a manager in accounting services at Kaufman Rossin. can be reached at lgrossman@kaufmanrossin.com
