Transportation
Airline Fares
1. Compare low-cost carriers with major carriers that fly to your destination. Remember, the best fares may not be out of the airport closest to you.
2. You may save by including a Saturday evening stay-over or by purchasing the ticket at least 14 days in advance. Ask which days of the week and times of the day have the lowest fare.
3. Even if you are using a travel agent, check airline and Internet travel sites, and look for special deals. If you call, always ask for the lowest fare to your destination.
New Cars
4. You can save lots of money over the lifetime of a car by selecting a model that combines a low purchase price with low depreciation, financing, insurance, gasoline, maintenance, and repair costs. Look out for internet for new car guides that contain this information.
Transportation
5. Having selected a model and options you are interested in, you can save money by comparison shopping. Get price quotes from several dealers and let each know you are contacting the others.
6. Remember there is no “cooling off” period on new car sales. Once you have signed a contract, you are obligated to buy the car.
Used Cars
7. Before buying any used car:
• Compare the seller’s asking price with the average retail price in a “bluebook” or other guide to car prices which can be found at many banks, and credit unions.
• Have a mechanic you trust check the car, especially if the car is sold “as is.”
8. Consider purchasing a used car from an individual you know and trust. They are more likely than other sellers to charge a lower price and point out any problems with the car.
Auto Leasing
9. Don’t decide to lease a car just because the payments are lower than on a traditional auto loan. The leasing payments are lower because you don’t actually own the car.
10. Leasing a car is very complicated. When shopping, consider the price of the car (known as the capitalized cost), your trade-in allowance, any down payment, monthly payments, various fees (excess mileage, excess “wear and tear,” end-oflease), and the cost of buying the car at the end of the lease.
Auto Fuel
11. You can save lots of money a year by comparing fuel prices at different stations.
12. You can save on fuel by keeping your engine tuned and your tires inflated to their proper pressure.
Car Repairs
13. Consumers lose hell loads of money each year on poorly done car repairs. The most important step that you can take to save money on these repairs is to find a skilled, honest mechanic. Before you need repairs, look for a mechanic who:
• is certified and well established;
• has done good work for someone you know; and
• communicates well about repair options and costs.
Insurance
Auto Insurance
14. You can save several hundred dollars a year by purchasing auto insurance from a licensed, lowprice
insurer. Check out internet and other resources to find quotes offered by different companies. Then call at least four of the lowest-priced, licensed insurers to learn what they would charge you for the same coverage.
15. Make certain that your new policy is in effect before dropping your old one.
Life Insurance
16. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.
17. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your life insurance costs.
18. Check the internet and other available resources for information on the financial soundness of insurance companies.
Banking/Credit
Checking Accounts and Debit Cards
19. You can save some money in a year in fees by selecting a free checking account or one with no minimum balance requirement. Request a complete list of fees that are charged on these accounts, including ATM and debit card fees.
20. See if you can get free or lower cost checking through direct deposit or agreeing to ATM only use. Be aware of charges for using an ATM not associated with your financial institution.
Savings Products
21. Once you select a type of savings account, use the telephone, newspaper, and Internet to compare rates and fees offered by different financial institutions, including those outside your city. These rates can vary a lot and, over time, can significantly affect interest earnings.
22. To earn the highest return on savings (annual percentage yield) with little or no risk, consider certificates of deposit (CDs) or Savings Bonds.
Credit Cards
23. To avoid late payment fees and possible interest rate increases on your credit cards, make sure you send in your payment a week to ten days before the statement due date. Late payments on one card can increase fees and interest rates on other cards.
24. You can avoid interest charges, which may be considerable, by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can. Try to shift the remaining balance to a credit card with a lower annual percentage rate (APR). You can find listings of credit card plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers.
25. Be aware that credit cards with rebates, cash back, travel awards, or other perks may carry higher rates or fees.
Auto Loans
26. To save as much as money in finance charges, pay for the car in cash or make a large down payment. Always get the shortest term loan possible as this will lower your interest rate.
27. Make certain to get a rate quote (or preapproved loan) from your bank or credit union before seeking dealer financing. You can save money in finance charges by shopping for the cheapest loan.
First Mortgage Loans
28. Although your monthly payment may be higher, you can save tens of thousands of money in interest charges by shopping for the shortestterm mortgage you can afford. For each Rs 100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over Rs 75,000 less in interest on a 15-year fixed rate mortgage than you would on a 30-year fixed rate mortgage.
29. You can save lots of money in interest charges by shopping for the lowest-rate mortgage. On a 15-year Rs 100,000 fixed-rate mortgage, just lowering the APR from 7% to 6.5% can save you more than Rs 5,000 in interest charges over the life of the loan.
30. Check the Internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates (APRs), points, and fees.
31. Be aware that the interest rate on most floating rate mortgages (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of rupees a month, so ask the lender what the highest possible monthly payment might be.
Mortgage Refinancing
32. Consider refinancing your mortgage if you can get a rate that is lower than your existing mortgage rate and plan to keep the new mortgage for at least several years. Calculate precisely how much your new mortgage (including fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.
Housing
Home Purchase
33. You can often negotiate a lower sale price by employing a buyer broker who works for you, not the seller. If the buyer broker or the broker’s firm also lists properties, there may be a conflict of interest, so ask them to tell you if they are showing you a property that they have listed.
Renting a Place to Live
34. Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to live and contact their building manager or owner to see if anything is available.
35. Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.
Home Improvement
36. Home repairs often cost lots of money and are the subject of frequent complaints. Select from among several well established, licensed contractors who have submitted written, fixed-price bids for the work.
37. Do not sign any contract that requires full payment before satisfactory completion of the work.
Housing
Major Appliances
38. Do your own research for information about specific appliance brands and models and how to evaluate them, including energy use. There are often great price and quality differences. Look for the yellow Energy Guide label on products, and especially for products that have earned the government’s ENERGY STAR, which can save up to 50% in energy use.
39. Once you’ve selected a specific brand and model, check the Internet or yellow pages to learn what stores carry the brand. Call at least four of these stores to compare prices and ask if that’s the lowest price they can offer you. This comparison shopping can save you money.
Utilities
Heating and Cooling
40. A home energy audit can identify ways to save money on home heating (and air conditioning). Ask your electric or gas utility if they audit homes for free or for a reasonable charge. If they do not, ask them to refer you to a qualified professional.
Telephone Service
41. Once a year, review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package that offers local, local toll and long distance, and possibly other services, if you heavily use all the services in the bundle.
Utilities
42. Check your phone bill to see if you have optional calling features or additional services, such as inside wire maintenance, that you don’t need.
43. If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use prepaid plan.
44. Before making calls when away from home, compare per minute rates and surcharges for cell phones, prepaid phone cards, and calling card plans to find how to save the most money.
Other
Food Purchased at Markets
45. You can save hundreds of dollars a year by shopping at lower-priced food stores or local market. Convenience stores often charge the highest price.
Other
46. You will spend less on food if you shop with a list, take advantage of sales, and purchase basic ingredients, rather than pre-packaged components or ready-made items.
47. You can save money by comparing price-per-ounce or other unit prices on shelf labels. Stock up on those items with low per-unit costs.
Prescription Drugs
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