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Home > Personal Finance > Topics:  Curbing Expenses
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Reader's Digest's "16 Ways to Save $100"

We recently came across an article by Reader's Digest titled "16 Ways to Save $100: Simple, Sensible Ways to Save Money". While we doubt that most people will be able to take advantage of all 16 on the list, acting on just one or a few can bring about meaningful savings – and in a lot of cases, much more than $100 of savings over the course of a year.

Reader's Digest provides an overview for their list:

As the government and Federal Reserve campaign to head off a recession, many families are working hard to save money and reduce debt. Credit-card debts and other loans hang over us like a sword. By saving modest amounts, however, you can reap big rewards over time. And that doesn't require clipping coupons and washing out used coffee filters.
The first item on the list describes savings that a Potomac, MD resident was able to find by getting a free home-energy audit from his utility company. He was spending $250/month on electricity at home:

[Mickey] Greenblatt learned that simple things such as running his dishwasher at night rather than during the day could cut his bill by 40 percent.
Cutting his monthly bill by 40% amounts to $100 in savings per month, or $1,200 per year. Not bad.

The second item on the list offers ways to reduce your car insurance rates:

You can save substantially by increasing the deductibles on the comprehensive and collision portions of your policy. According to the Insurance Information Institute, raising collision deductibles from $200 to $500 could reduce your collision and comprehensive coverage by 15-30 percent. Squeeze out additional savings by asking about every possible discount, such as for carpooling, air bags, annual mileage below 10,000 miles -- even for teenage drivers with grade averages above a B.
And the third item on the list suggests challenging your property taxes, a subject we wrote about recently: How to Get Your Property Taxes Reduced.

The 16 ways are listed below, but be sure to read the full Reader's Digest article, as they provide helpful details next to each tip.

   1. Plug into bargain electricity.
   2. Hit the brakes on automobile-insurance rates.
   3. Challenge your property tax.
   4. Shop for a bargain bank.
   5. Remedy pricey prescriptions.
   6. Pay off your plastic.
   7. Say no to car extras.
   8. Take a longer waiting period for disability insurance.
   9. Cancel mortgage insurance.
   10. Explore DRIPs.
   11. Buy straight from the Treasury.
   12. Clean out your closet.
   13. Skip the service contract.
   14. Flex your company's flexible spending account.
   15. Buy in bulk.
   16. Rethink your vacations.





Photo credit: bdjsb7
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submitted by TipHero reader: TipHero  08/05/2008 2:46 PM
 
 
 
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Great tips.
 
Posted by Ramona Hyman on December 26, 2008 11:24 AM
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Flex my companies flexable spending account??? Challange my property tax??? People please.... these are not tips for anyone REALLY needing tips on saving money.
 
Posted by Scott on January 01, 2009 12:04 PM
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Scott,

Using a flex account is a great way to save money on your medical expenses. If you know you are going to spend at least $X amount on medical expenses in a year, you are much better off setting that money aside tax free then having it taxed 15%-20% by the state and fed and then give you the remainder.

I easily spend $500/year between my families doctor visit copays and prescriptions, so I set aside $500 tax free. If I didn't, that $500 would only be $350 in my pocket which is what I was doing before I knew about the flex option, $150 down the drain. so why wouldn't you put that money in a tax free flex account so that you in effect only spend $350 on those expenses? My salary is taxed at a rate of about 15%, so I am better off setting aside a flex account and not having that money taxed. So you are saving money. This saves my family money a significant amount of money each year.

Money saving tips come in all varieties. Not all of them work for everyone.

Am curious as to what you would consider a good money saving tip.
 
Posted by smrtshppr on January 01, 2009 3:12 PM
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Scott- it seems you fail to grasp how much money can be saved if you use the flex spending account. It is one of the best kept money savings secrets for people of all tax brackets. This can really add up, as you can use it for all medical expenses including dental. I saved $750.00 last year using this account to pay for my daughters braces!

Note: you do have to use all of the money that you put away in this account each year, or you will lose it. So, it's best to only put it what you know you will spend.
 
Posted by Brenda on January 04, 2009 1:51 AM
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In addition to an FSA, one can also save a lot of money by buying a high deductible medical plan along with it. Before using this option though, consider not doing it you are not healthy and are taking prescription medicines all the time. Since we are reasonably healthy in this family, this is the second year I have done it. As a family, I can contribute up to $6450.00 pretax a year(2009) and like a regular FSA, I can withdraw the money tax free for medical or even Long Term Card policy premiums. Unlike the separate FSA, this money does not have to be used and stays with me for the rest of my life. In addition, health cost premiums are much lower with the high deductible plan than the other medical options typically offered.
 
Posted by healthymidager on January 04, 2009 11:27 AM
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I work at a pizza place and receive many tips from the customers. Any change that I receive it all goes in a huge water jug that I am not able to touch. At the end of the year I have tons of money saved just from loose change. It works out great. If you tell yourself your not able to use your loose change you will save more than you think you will. It's great! It comes in handy when the end of the year taxes come up!
 
Posted by Cassandra on January 05, 2009 5:27 PM
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