Save $50 a Day (and Feel No Pain)

See how much money you can put back in your pocket

We searched for big gains -- with little pain. The result? We sliced food bills by $2,794, found $1,214 in savings on utility costs, discovered leisure for $2,241 less, cut $3,715 in fees from banking and loans, plus shaved transportation costs by $2,827.

All the ideas listed in the section below reduce your cost-of-living by $18,250 per year. Break it down and you're saving $50 a day. See which ones work for you. Plus, find out how three super savers do it. (Don't forget to add your tips in the Comment Box below.

Pay Less for Banking & Loans

Seven ideas to keep more in your bank account.

1. Bye-Bye, Late Fees: Millions pay credit-card late fees of as much as $39 each month. Use an automatic debit to make payments and you'll never be late again.

Annual Savings: $234
(eliminating six late fees a year )

2. Wipe Out Interest: The average household has $7,430 in credit-card debt. But let's assume you have just half that. Take advantage of a 12-month 0% balance-transfer offer from Bank of America or Discover.

Annual Savings: $422
(on a rate of 13.6%)

3. Stay in-Network, Nix ATM Charges: Each time you use an out-of-network ATM, you pay an average of $3.43. Avoid charges by selecting a bank like Citibank, with more than 23,000 fee-free ATMs.

Annual Savings: $178
(based on one fewer out-of-network ATM withdrawal per week)

4. Get Free Checking No Minimum? No Matter: Brick-and-mortar banks charge an average fee of $12 per month for checking accounts and require an average minimum balance of almost $3,500 to avoid it. If you use direct deposit or make five or more debit-card purchases each month, Chase offers a free account with no minimum balance required. Or bank online at Salem Five Bank, pay no monthly fees, and earn 2.75%.

Annual Savings: $144

5. Use Cash-Back Cards Savings Really Add Up: Tired of accruing airline miles that you can never redeem? Switch to a cash-back credit card and earn enough in a year to pay for a coast-to-coast ticket. If you spend $850 a month for 12 months using Blue Cash from American Express, you could see a $250 credit on your bill at the end of the period. Even charging $550 a month on basics such as groceries, gas and drugstore purchases can put money in your pocket.

Annual Savings: $250

6. Bounce No More Sign Up for Free Alerts: The average bounced-check fee has increased 34% over the past ten years and is now $29, according to Bankrate.com. If you never balance your checkbook, sign up for your bank's free alerts to warn you if your balance drops to the preset amount of your choice. Need a safety net? You can get overdraft protection. Just be sure you know how much you're paying for it.

Annual Savings: $174
(six fewer overdrafts per year)

7. Refinance a Mortgage: Monthly mortgage payments take up the lion's share of most household budgets, so refinancing can produce substantial savings. With the interest rate on a 30-year fixed-rate loan at less than 5.5%, now is a good time to refinance.

Slashing your rate from 6.75% to 5.25% on a 30-year loan will save you 17% on your monthly payment. On a $200,000 mortgage, that translates into a savings of almost $193 per month. For your own situation, use the How much will my payment be? calculator at Kiplinger.com. Of course, for a refi to pay off, you must stay in the house long enough to recoup any closing costs, which typically amount to 2% to 4% of the loan.

Annual Savings: $2,313
(refinancing a $200,000 mortgage)

TOTAL ANNUAL BANKING SAVINGS: $3,715

Pay Less for Health and Insurance Costs

1. Reshop Life Insurance Rates Are Lower, Even Though You're Older: Premiums have plummeted over the past decade, and you may be able to save hundreds of dollars by reshopping your policy, even though you're older now. Term-insurance prices varied widely in 1998, and many major insurers were charging a 40-year-old man at least $750 per year for a $500,000, 20-year term policy. Today, a healthy 50-year-old man can buy a $500,000 ten-year term policy (which expires in the same year) for just $445 -- a savings of more than $300 per year. Compare prices among dozens of insurers at Accuquote.com.

Annual Savings: $300
(on a ten-year term policy for a 50-year-old)

2. Save on Meds Generics Pummel Pill Prices: Try switching from brand-name prescription drugs to generics or other low-cost alternatives. A 50-year-old couple taking five common drugs and cholesterol-lowering medication for each, plus high-blood-pressure and enlarged-prostate drugs for the husband and an osteoporosis drug for the wife could lower their monthly costs from about $575 to $37 by switching to generics and shopping at a lower-cost pharmacy. Find alternatives for your medications at Destination Rx.

Annual Savings: $797
(by switching blood-pressure medication Norvasc to the generic brand at a big-box store)

3. Insure for Less Lower Your Home Premiums: Raising the deductible on your homeowners insurance policy from $250 to $1,000 or $2,500 can lower your premiums by 15% to 25% per year. For example, boosting the deductible from $250 to $1,000 on a house insured for $250,000 in northern California reduces the average annual premium at the 22 companies in InsWeb's database by $188; raising the deductible from $250 to $2,500 lowers the average premium by $319.

Annual Savings: $319
(on a house insured for $250,000)

4. Raise Your Limits Boost the Deductibles: Increasing the deductibles on your comprehensive and collision coverage from $500 to $1,000, or even $2,500, can reduce your premiums by 12% to 18%. For example, boosting the deductibles from $500 to $1,000 would mean a savings of $648 per year, on average, for a northern California family with two teenage drivers, according to the database at InsWeb, an insurance Web site. Raising the deductibles from $250 to $2,500 lowers the average premium by $1,503.

Annual Savings: $648
(with a $1,000 deductible and two teenagers)

TOTAL ANNUAL INSURANCE SAVINGS: $2,064

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