Best Ways to Save $2 Grand a Year

Looking to cut back this year? Here are seven easy ways to do it.

Vespausa.com

1. Transportation

Strategy: Be a scooter commuter: Ditch the car you drive to the train station for a Vespa.

Based on: Second car is a small sedan, and you drive 5,000 miles a year; includes insurance, depreciation, and finance charge.

Save: $3,261

2. Cash

Strategy: Use cash, not plastic, when you're buying groceries and clothes.

Based on: Studies indicate people spend at least 12% more with credit cards; assumes $7,200 on groceries and $2,000 on clothes.

Save: $986

3. Wine

Strategy: Bring your own wine to your biweekly restaurant dinner.

Based on: $18 store-bought bottle plus $10 corkage fee vs. comparable $45 bottle bought at restaurant.

Save: $442

4. Homeowners insurance

Strategy: Raise the deductible on your homeowners policy from $500 to $2,500.

Based on: Home value of $275,000 in El Dorado Hills, Calif.

Save: $264

5. Car Insurance

Strategy: Get lower-cost car insurance (there really is something to those commercials).

Based on: An Ohio driver with two cars and a $500 deductible.

Save: $177

6. Energy-Efficient Appliances

Strategy: Replace your 10-year-old washing machine with an Energy Star model.

Based on: Savings in water and energy bills.

Save: $145

7. Interest Checking

Strategy: Switch to the Schwab Interest Checking account, which reimburses ATM fees.

Based on: Using an ATM not owned by your bank once a week and paying $2 in fees each time.

Save: $104