TRANSPORTATION
Airline
Fares
1.
You can lower the price of a round trip air fare by as much as two-thirds by
making certain your trip includes a Saturday evening stay-over, and by
purchasing the ticket in advance.
2.
To make certain you have a cheap fare, even if you use a travel agent, call all
the airlines that fly where you want to go and ask what the lowest fare to your
destination is.
3.
Keep an eye out for fare wars. Be prepared to act quickly.
Car
Rental
1.
Since car rental rates can vary greatly, shop around for the best basic rates
and special offers.
2.
Rental car companies offer various insurance and waiver options. Check with
your insurance agent and credit card company in advance to avoid duplicating
any coverage you may already have.
New
Cars
1.
You can save thousands of pounds over the lifetime of a car by selecting a
model that combines a low purchase price with low financing, insurance, petrol,
maintenance, and repair costs. Ask your local librarian for new car guides that
contain this information.
2.
Having selected a model, you can save hundreds of pounds by comparison
shopping. Call at least five dealers for price quotes and let each know that
you are calling others.
3.
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
1.
Before buying any used car:
a.
Compare the seller's asking price with the average retail price in a
"bluebook" or other guide to car prices found at many libraries.
b.
Have a mechanic you trust check the car, especially if the car is sold "as
is."
2.
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.
Car
Leasing
1.
Don't decide to lease a car just because the payments are lower than on a
traditional car loan. The leasing payments may be lower because you don't own
the car at the end of the lease.
2.
Leasing a car is very complicated. When shopping, consider the price of the
car, your trade-in allowance, any down payment, monthly payments, various fees
(excess mileage, excess "wear and tear", end-of-lease), and the cost
of buying the car at the end of the lease.
Petrol
1.
You can save hundreds of pounds a year by comparing prices and using the
lowest-octane called for in your owner's manual.
2.
You can save up to œ 50 a year on petrol by keeping your engine tuned and
your tires inflated to their proper pressure.
Car
Repairs
1.
Consumers lose millions of pounds each year on unneeded or 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
Car
Insurance
1.
You can save several hundred pounds a year by purchasing car insurance from a
licensed, low-price insurer. Check typical prices charged 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.
2.
Talk to your agent or insurer about raising your deductibles on collision and
comprehensive coverages to at least œ 300 or, if you have an old car,
dropping these coverages altogether. Taking these steps can save you hundreds
of pounds a year.
3.
Make certain that your new policy is in effect before dropping your old one.
Homeowner
Insurance
1.
You can save œ 50 or more a year by purchasing homeowner insurance from a
low-price, licensed insurer. Check typical prices charged by different licensed
companies. Then call at least four of the lowest priced insurers to learn what
they would charge you.
2.
Make certain you purchase enough coverage to replace the house and its
contents.
3.
Make certain your new policy is in effect before dropping your old one.
Life
Insurance
1.
If you want insurance protection only, buy a term life insurance policy.
2.
If you want to buy a whole life, universal life, or other cash value policy,
plan to hold it for at least 15 years. Cancelling these policies after only a
few years can more than double your
life
insurance costs.
3.
Check your public library for information about the financial soundness of
insurance companies and the prices they charge.
BANKING/CREDIT
Cheque
1.
You can save more than œ 50 a year in fees by selecting a cheque account
with a minimum balance requirement that you can, and do, meet.
2.
Banking institutions often will drop or lower their fees if paycheques are
directly deposited by your employer. Direct deposit offers the additional
advantages of convenience, security, and immediate access to your money.
Savings
and Investment Products
1.
Before opening a savings or investment account with a bank or other financial
institution, find out whether the account is insured by the government. An
increasing number of products
offered
by these institutions, including mutual stock funds and annuities, are not
insured.
2.
To earn the highest return on savings (annual percentage yield) with little or
no risk, consider certificates of deposit and treasury bills or notes.
3.
Once you select a type of savings or investment product, compare rates offered
by different institutions. These rates can vary a lot and, over time, can
significantly affect interest earnings.
Credit
Cards
1.
You can save as much as several hundred pounds each year in lower credit card
interest charges by paying off your entire bill each month.
2.
If you are unable to pay off a large balance, switch to a credit card with a
low annual percentage rate (APR).
3.
You can reduce credit card fees, which may add up to more than œ 50 a year,
by getting rid of all but one or two cards, and by avoiding late payment and
over-the-credit limit fees.
Car
Loans
1.
If you have significant savings earning a low interest rate, consider making a
large down payment or even paying for the car in cash. This could save you as
much as several thousand pounds in finance charges.
2.
You can save as much as hundreds of pounds in finance charges by shopping for
the cheapest loan. Contact several banks, your credit union, and the car
manufacturer's own finance company.
Mortgage
Loans
1.
You may save tens of thousands of pounds in interest charges by shopping for
the shortest-term mortgage you can afford. On a œ 50,000 fixed-rate loan at
8% annual percentage rate (APR), for example, you will pay œ 45,000 less in
interest on a 15-year
mortgage
than on a 30-year mortgage.
2.
You can save thousands of pounds in interest charges by shopping for the
lowest-rate mortgage with the fewest points. On a 15-year, œ 50,000
fixed-rate mortgage, just lowering the APR from 8.5% to 8.0% can save you more
than œ 2,500 in interest
charges.
On this mortgage, paying two points instead of three would save you an
additional œ 500.
3.
If your local newspaper does not periodically run mortgage rate surveys, call
at least six lenders for information about their rates (APRs), points, and
fees. Then ask an accountant to
compute
precisely how much each mortgage option will cost and its tax implications.
4.
Be aware that the interest rate on most adjustable rate mortgage loans (ARMs)
can vary a great deal over the lifetime of the mortgage. An increase of several
percentage points might
raise
payments by hundreds of pounds per month.
Mortgage
Refinancing
1.
Consider refinancing your mortgage if you can get a rate that is at least one
percentage point lower than your existing mortgage rate and plan to keep the
new mortgage for several years or more. Ask an accountant to calculate
precisely how much your new mortgage (including up-front fees) will cost and
whether, in the long run, it will cost less than your current mortgage.
Home
Equity Loans
1.
Be cautious in taking out home equity loans. These loans reduce the equity that
you have built up in your home. If you are unable to make payments, you could
lose your home.
2.
Compare home equity loans offered by at least four banking institutions. In
comparing these loans, consider not only the annual percentage rate (APR) but
also points, closing costs, other fees, and the index for any variable rate
changes.
HOUSING
Home
Purchase
1.
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.
2.
Do not purchase any house until it has been examined by a surveyor that you
selected.
Renting
a Place to Live
1.
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.
2.
Remember that signing a lease probably obligates you to make all monthly
payments for the term of the agreement.
Home
Improvement
1.
Home repairs often cost thousands of pounds 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.
2.
Do not sign any contract that requires full payment before satisfactory
completion of the work.
Major
Appliances
1.
Consult Consumer Reports, available in most public libraries, for information
about specific brands and how to evaluate them, including energy use. There are
often great price and quality differences among brands.
2.
Once you've selected a brand, check the phone book to learn what stores carry
this brand, then call at least four of these stores for the prices of specific
models. After each store has
given
you a quote, ask if that's the lowest price they can offer you. This comparison
shopping can save you as much as œ 50 or more.
UTILITIES
Electricity
1.
To save as much as a hundred pounds or more a year on electricity, make certain
that any new appliances you purchase, especially air conditioners and furnaces,
are energy-efficient.
Information
on the energy efficiency of major appliances is found on Energy Guide Labels
required by law. Check with your electric utility to learn if it has a
programme to help reduce the costs of any appliance purchases.
2.
Enrolling in load management programmes and off-hour rate programmes offered by
your electric utility may save you up to œ 50 a year in electricity costs.
Call your electric utility for information about these cost-saving programmes.
Home
Heating
1.
A home energy audit can identify ways to save up to hundreds of pounds a year
on home heating (and air conditioning). Ask your electric or gas utility if
they can do this audit for free or for a reasonable charge. If they cannot, ask
them to refer you to a qualified professional.
Local
Telephone Service
1.
Check with your phone company to see whether there are any special deals or
offers that will save you money.
2.
You will usually save money by buying your phones instead of leasing them.
3.
Check your local phone bill to see if you have optional services that you don't
really need or use. Each option you drop could save you œ 20 or more each
year.
Long
Distance Telephone Service
1.
Long distance calls made during evenings, at night, or on weekends can cost
significantly less than weekday calls.
2.
If you make more than a few long distance calls each month, consider
subscribing to a calling plan.
3.
Whenever possible, dial your long distance calls directly. Using the operator
to complete a call can cost you considerably more.
OTHER
Food
Purchases
1.
You can save hundreds of pounds a year by shopping at the lower-priced
supermarkets and markets. Convenience stores often charge the highest prices.
2.
You will spend less on food if you shop with a list.
3.
You can save hundreds of pounds a year by comparing price- per-kg or other unit
prices on shelf labels. Stock up on those items with low per-unit costs.
Prescription
Drugs
1.
Since brand name drugs are usually much more expensive than their generic
equivalents, ask your doctor and pharmacist for generic drugs whenever
appropriate.
2.
Since pharmacies may charge widely different prices for the same medicine, call
several. When taking a drug for a long time, shop around for the best price.
Funeral
Arrangements
1.
Make your wishes known about your funeral, memorial, or burial arrangements in
writing. Be cautious about prepaying because there may be risks involved.
2.
For information about the least costly options, which could save you several
thousand pounds, contact a local memorial society, which is usually listed in
the Yellow Pages under
funeral
services.
3.
Before selecting a funeral home, call several and ask for prices of specific
goods and services, or visit them to obtain an itemised price list. You are
entitled to this information by law and, by using it to comparison shop, you
can save hundreds of pounds.
