Our mortgage eats about 40 percent of our take-home pay, and we're not sure how to cut in other areas. Do you have any money-saving tips? -- AugustBride0902
Take a look at your large fixed expenses.
Mortgage: I’m sure that you got a better rate on the mortgage when you bought the house than you would if you refinanced today. But if you didn’t shop wisely, if your credit score has improved in the past couple of years, or if you have an ARM (adjustable rate mortgage) that’s ready to pop, it’s time to look at refinancing again. Try to lock down a rate that’s fixed for at least the next five years because interest rates are on the rise.
Cars: If you have car loans, they can be refinanced. If you (like many people) used dealer financing to buy the car, you may be able to get yourself a better rate with a credit union or a competitive auto financing group, like Capital One Auto Finance.
Insurance: If it’s been a few years since you’ve shopped for homeowners and auto insurance, it’s time to make a couple of calls. You can often cut your premiums by 20 to 30 percent just by getting both coverages from the same company.
Food: Online grocery shopping will dramatically reduce the amount you spend on impulse purchases and will save you some precious time. Also, go to websites and message boards, like “Money Matters” on The Nest, where people share coupon codes. Thegrocerygame.com has free printable coupons. Just make sure you use them for what you need, not just because you have a reduced price!
Technology: This includes Internet, phone, cell phone, cable. Have you looked for a bundled package of services that could lower your monthly bill? Can you cut the landline and use just cell phones?
Impulse shopping: Start tracking your spending. If you're like most people, simply writing down each dollar you spend for a solid month will truly be eye-opening. You’ll find a dozen different ways to save.
>> More Money Q&A with Jean Chatzky
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Jean Chatzky is a money coach and the financial editor for the Today show. She is the the author of of five books including the upcoming Make Money Not Excuses: Wake Up, Take Charge and Overcome Your Financial Fears Forever.
>> Buy it now
>> Check out her website, jeanchatzky.com
by The Nest Editors
7/1/08
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