Finance Roll

As a nation, we annually waste billions of dollars on uneaten food,
over priced clothes, unused, unnecessary items, uncompetitive savings
account rates and excessive credit cards interest. American consumers
throw away money as never before and the credit card bills roll in
with their record of excessive Christmas spending. This makes January
a perfect time to start putting your personal savings finances in
order.

I know that I find something freeing, almost liberating about
spending money away on treats for myself. It can be something as
cheap as a pad of notepaper with some fancy design on it that costs
$5, or as expensive as staying at a hotel room instead of driving two
hours home after a conference. However, there is no reason why people
who save their money should accept minuscule interest rates or sky-
high credit card interest charges.

Spending a few minutes now to find a better deal will leave you
better off by December 31. Leaving things the way you have left them
in the past is like setting fire to your own money. By making a few
changes to improve your accumulation versus your spending will make
it so that the odd taxi home, the takeout chicken or spontaneous
clothing purchase will not have a dramatically negative effect on
your bank balance or credit card debt."

Here are 10 easy ways to save money in 2005 and every year beyond.

1 SAVE ON FOOD

Healthy eating doesn't have to be expensive. Making your sandwiches
at home and taking them to work might cost you $3 a day if you really
go all out on the fixings and drink. Buying a sandwich, drink, and
chips at Subway or McDonalds and you've dropped $5 - $9 plus ingested
more calories, fat, and preservatives than is healthy for you. If you
cut $2 a day out of your spending, and weekly or monthly put that
money into a special account at your bank or freezer, you will have
$10 a week, $40 a month, $500 a year. Maybe that is your Christmas
present fund?

Slash supermarket bills by making a shopping list and sticking to
it. Avoid picking up the over priced "bargain" extras placed at the
end of the aliases where they can tempt you. (Tip: Leave the kids at
home when you grocery shop.) Give the store's own brand a try, their
value ranges can cost a third the price for name-brand items and
contain the same nutrition. Buy fruit and vegetables in local farmers
markets in season - prices are competitive, you know the people who
grow the food and you get to be outside for a bit of fresh air.
Make your meals at home and freeze portions for future meals. Often
times the home cooking is lower in fat, sugar and salt than ready-to-
eat meals and having the food in the freezer, ready to thaw will
reduce the temptation to by over-priced takeout.

2 SAVE ON DAILY SPENDING

Take a good look at what you really use. Do you have a gym
membership that you only visit occasionally but seem to renew every
year? Do you take the bus or taxi to work? Save a few dollars and get
in some free exercise by getting out a couple blocks early.
Leave the ATM machine card at home, and when you do use it, take
less money out than you normally do. It's harder to waste the money
if you don't have it in your pocket. Join the local library - you'll
spend less time in bookshops. Shopping for purchases can also save
money - many major stores offer a price promise matching any
advertised price.

3 MORTGAGE SAVINGS

Penny watching will save a small fortune over the years, but taking
the trouble to find the lowest over-all cost mortgage available can
also save a small fortune. If you can recoup your costs through a
lower interest rate in less than 2 years, go ahead and refinance,
over the long haul that lower interest rate can save you some real
change.

2003 provided the lowest interest rates in 50 years, yet many
homeowners failed to switch to a cheaper mortgage rate. 2004 was also
a year of decent interest rates, yet many homeowners are still paying
too much interest. Instead of simply writing a check next month looks
into the possibility of refinancing.

4 CUT HOME INSURANCE COSTS

Cutting home insurance is also easy. Identify the level of coverage
you need and then shop around to find the lowest premiums based on
that coverage. If you are willing to self insure more than the
standard $500 deductible - that is pay the first $1,000 or $2000 of a
loss - you will find a significant savings in the annual rate. Just
beware, that many of the small things like broken windows, a few
shingles off your roof will not be paid by the insurer because they
cost below that $1,000 deductible.

Lower premiums are also offered by some companies to members of a
neighborhood watch or to the people with extra security. Good quality
locks, alarms, and security systems deter break-ins and some insurers
discount for that. Don't forget your outbuildings when looking for
insurance coverage. Many of the items in your garden shed are
expensive to replace if they disappear.

5 CUT CAR COSTS

Your car can be expensive to operate. Fuel, maintenance, and
insurance can cost per mile more than the current 37.5 cents the IRS
says a vehicle costs to operate. Depreciation can total nearly 60% of
a new cars cost in the first 2 years. Keeping your tires properly
inflated, the filters clean and the starting and stopping to a
minimum will increase your mileage and decrease expenses.

Using the Internet will help you cut your insurance costs
dramatically if you go online to shop for a better insurance rate.
Another thing that will help with your insurance fee is keeping your
driving record clear of moving vehicle tickets - don't speed.

6 SAVE ON UTILITY BILLS

Depending on where you live the deregulation of gas and electricity
means suppliers have competition now and deals are available if you
go looking. Consumers stand to save nearly a third of their gas bill
if they live in areas with competition and are willing to shop around
and ask for the savings.

You can save even more with energy-saving measures like drawing the
curtains at dusk, turning the TV off rather than using standby,
buying energy-efficient light bulbs and turning the thermostat down
just one degree, at night or while you are away during the day.
When you go to renew your cell phone - shop around. The act of
Congress mandating the option to take your phone number with you has
proved many cheaper rates and more incentives to get you to switch
from one carrier to the other.

7. LIFE INSURANCE

Life insurance rates have fallen the last few years, especially for
the term rates. At a minimum buy enough insurance for your spouse to
be able to live without employment until the kids are old enough to
go to school. Get on the internet and search for the best rate you
can find. You won't even have to deal with an insurance salesman.

8 SAVE ON CREDIT AND BANKING

Credit is a way of life today, and many of us are paying through the
nose for trillions in unsecured personal borrowing on credit cards.
APRs can reach almost 25 per cent for in-store credit, and many
struggle to pay the interest, adding punitive years to the borrowing
term.

Instead look at low-cost loan to consolidate debts, or a new credit
card with an introductory rate of zero per cent on purchases and
balance transfers. You can even switch your borrowing from one card
to another as the free introductory rate expires. The key is to hold
your payments level, even as the minimum required drops. Doing this
will cut 20 years off most repayment times.

Competition means better banking deals, though you might need to
find a small bank to get the best rates of interest or lowest cost
for services. Always pay attention to what your level of service is
going to cost you, what does a box of duplicate checks cost, and if
you accidentally bounce a check what is the overdraft charge and how
much you'll be charged to receive a copy of your paper checks.

9 INVESTMENTS

Always make sure you are getting the interest rate you deserve for
whatever savings you've got. The rate will depend on your level of
comfort dealing with the internet, telephone banking or if you need a
live person to deal with. Online banks offer a higher interest rate
because they have less overhead costs than a brick-and-mortar bank
staffed with live humans.

Check rates regularly - banks tend to be slower to raise their
payment rate than when raising the cost of borrowing. Don't forget to
max out your IRA, 401k, or whatever savings vehicle you have that is
tax deferred or tax free.

10 CUT TRAVEL COSTS

Using a website like http://www.travelocity.com can mean you save a lot of
money when buying a package deal. The savings can be really huge if
you are willing to shop online at the last minute. Shop around for
reasonable priced travel insurance - an annual insurance policy may
be cheap if you take several trips a year. Try to fly an airline that
is not in bankruptcy trouble so you can be confident they will
probably still be in business when you need to travel