Slash
Your Bills — 6 Ways to Keep More Cash Like a lot of
hardworking couples, Ilah and Dennis Hardesty of Long Beach, California, live
paycheck to paycheck. Their $1,200 monthly rent eats up about half of Dennis’s
take-home pay as a manager for a racing car engine manufacturer. Private school
tuition for their three teens takes another $400 bite. Income from Ilah’s two
part-time jobs — as a fitness trainer and school secretary—disappears at the gas
station and the grocery store. The bottom line Even with no car
payments and just $300 in credit card debt, the family barely gets by. "We don’t
have a penny in savings", says Ilah. "No, I actually do have one cent in my
account". With inflation outpacing wage growth in recent years,
it’s not hard to find families like the Hardestys running out of money before
they run out of month. According to the nonpartisan (无党派的) Economic Policy
Institute, which studies lower-and middle-class economic trends, the median
hourly wage of an American worker after inflation is less today than in 2003.
The result is less buying power after the bills are paid. These
days, inflation is hovering around three percent, so anyone who remembers the
double-digit price spikes of the 1970s might wonder what all the fuss is about.
But even moderate inflation takes its toll, says personal finance expert
Jonathan Pond, author of You Can Do It! The Boomer’s Guide to a Great
Retirement. In fact, annual inflation of just three percent doubles the cost of
living every 23 or 24 years. Meanwhile, some essential expenses — energy, health
care, higher education — are far outpacing the inflation index. No wonder
families are feeling pinched. Pinched doesn’t have to mean
powerless, though. Here, then, are six ways to save money on the big
bills. Education Options Here’s a pop quiz: Who’s
turned out move current CEOs of S&P 500 corporations — Harvard or the
University of Wisconsin Pencils up: They’re running neck and neck, according to
a recent study by Spencer Stuart, an executive recruiting firm. The study
reinforces what should be common sense: There’s no direct correlation between
where a child goes to undergraduate school and later success. In fact, the
pricey Ivies trained only ten percent of those CEOs. So if your
family’s budget favors State College over Snooty U., don’t sweat it. Kids who
are motivated will succeed, no matter the color of their cap and gown. Look for
quality institutions in your area. Consider a local four-year college and save
on mom and board. Or opt for a community college the first two
years (tuition is bargain-basement), then finish up at a state school or private
university. Don’t forget: Once your child moves on to, say, Tufts, he will get a
Tufts diploma. Financial planners also suggest that parents give
priority to their own retirement savings over college funds, since there are no
loans, grants or scholarships for surviving your senior years. Taking Care
of Health Care Like education; health care costs have been
outpacing inflation, which is one reason why employers are shifting more of the
insurance burden to individuals. To control the expense, many people are opting
for higher deductibles and lower monthly premiums. What’s more, says Pond,
"four-fifths of Americans enjoy pretty darn (非常) good health and could be safe
choosing a policy with fewer bells and whistles. If no one in your family uses
expensive pharmaceuticals, why pay for a high-priced drug benefit"
But what happens if you suddenly need a costly long-term drug Many
policies allow you to upgrade to a plan with better benefits, after a six-month
waiting period. You might also check out WalMart. The company recently started a
program in 27 states to fill 30-day generic prescriptions for just $4 each.
Nearly 300 drugs are covered. Among them are clonidine (blood pressure),
metformin (diabetes) and fluoxetine (an antidepressant). HSA
deposits roll over year to year, so you don’t lose the money if you stay
healthy. Withdrawals to pay for medical expenses are never taxed or penalized as
long as you live. After age 65, you can withdraw the money for any reason
without penalty, but you’ll have to pay taxes if the withdrawal is for
nonmedical expenses. Eat Healthy, Pay Less The best
way to cut your food bill is to eat less. Seems obvious, but here’s something
you probably didn’t know: Researchers at the University of Wisconsin-Madison
calculated that while "supersizing" your fast-food meal might be penny-wise (the
average supersize adds just 17 percent to the price but 73 percent more
calories), it’s literally pound-foolish. Dave Lieberman, chef
and host of Good Deal With Dave Lieberman on the Food Network, throws cold water
on the common belief that healthy food costs more than junk. And he dismisses
the myth that coupons will save you money. Most coupons, he says, are designed
to promote new, more expensive items. "I never use coupons unless it’s for
something I need". Drive a Good Bargain Gas goes up,
gas goes down, but the long-term trend is going nowhere but up. Protect yourself
by ditching that gas guzzler (原意：酒量大的人), but be careful. Many hybrids don’t get
much better mileage than smaller conventional cars, says Terry Savage, and they
cost a lot more. Even hybrids with excellent mpg ratings save
the most money in stop-and-go city traffic. "I considered buying a hybrid", says
Savage, who takes public transportation in her hometown of Chicago and drives on
weekends to get out of the city. "But most of my miles are on the highway. I
figured out the difference in miles per gallon, and the extra cash outlay for
the hybrid didn’t make sense. But if you do a lot of city driving, it might be a
good deal". The federal government is currently offering tax
credits for buying new hybrids. The credit varies considerably depending on the
car. Get a Handle on Home Energy You already know that
by insulating and sealing up your house, you can save money on your heating and
air-conditioning bills. But did you know those improvements can save you big tax
dollars Many energy-efficient upgrades you make on your home
during the 2006/2007 calendar years qualify for a federal tax credit up to $500
over the two years. (Tax School 101: A tax credit means a dollar-for-dollar
reduction on the taxes you owe; that’s better than a tax deduction, which merely
lessens the amount of income on which you are taxed.) Say you
spend $ 600 adding extra insulation to your attic (the most common site of heat
loss). You can subtract ten percent of that cost, or $60, from your tax bill.
Energy Star-rated windows and doors (an efficiency standard set by the federal
government) generally qualify for the credit, offsetting the higher cost of
these products. But you won’t get the credit if you don’t claim it. Shop
Smart Clothing’s a basic need, but the endless cycle of
sales, the proliferation of outlet stores, and online coupons can actually make
people spend more on clothing than necessary, says Kathryn Finney, author of How
to Be a Budget Fashionista. Instead of grabbing everything that
catches your eye, apply Finney’s "cost-per-wear" rule: "When I see something I
like, I ask myself ’How many times am I going to wear this in a year’ Then I
divide the price by that number. Ideally, an article of clothing should cost no
more than $3 per wear". To help you find the best deals on the
Internet, there’s new bargain-tracking software that notifies you (your toolbar
turns colors) when your favorite stuff is on sale. Check out the Intelligent
Shopping toolbar at ShopAtHome. com. Finney also likes Wow-Coupons. corn for its
printable coupons that she takes to the store. When you do go
shopping, don’t be afraid to ask your salesperson if she’s got any coupons or
deals. Or ask if that’s her best price. Some stores will take off as much as 15
percent, just for the asking. To stick to her budget, Finney
avoids credit cards and buys prepaid gift cards at her bank in the amount she
can afford. "Once it’s gone, it’s gone", she says. The cards may cost a few
dollars. Check for hidden fees and expiration dates. Insulating and sealing up your house can save you ______.