The recession has caused many Americans to cut
their spending, pay down their debts, and build their savings. And with
the economy's tepid recovery, it's still important to keep your
spending in check. Even if you think you've cut just about all the fat
from your budget, you can probably slash even more with our savvy
shopping advice. Keep reading to find out how to cut your expenses in
these areas.
Health Care
• Comparison shop every year. If
you have a choice of health plans at work or through Medicare, review
your options during the open-enrollment period (usually in the fall).
Find out what each plan covers so you know what you'll have to pay.
Consider deductibles, co-payments, and other cost-sharing in addition to
the monthly premium. If you're buying your own policy, go to HealthCare.gov,
which lets you screen every plan sold in your state to find one that
will meet your needs. Then consult an independent broker to sort through
your options.
• Seek cost-effective treatments. Check out prescription drugs on BestBuyDrugs.org, a Consumer Reports website that compares medications and lists the most cost-effective and safest ones for your condition.
• Buy drugs at big-box stores. We compared the prices of
over-the-counter drugs and found they were up to 50 percent cheaper at
Target and Walmart than at local supermarkets across the U.S. Those two
stores also charge just $4 for a 30-day supply of many generic
prescription drugs. For an even better bargain, get a 90-day supply for
$10. Similar programs are offered by CVS, Kmart, Kroger, Rite Aid, Sam's
Club, and Walgreens, although some, like CVS, charge an annual
membership fee. Some local pharmacies will match the low prices at chain
stores, but you have to ask.
• Check bills for errors. Eight of 10 hospital bills contain mistakes, according to the Medical Billing Advocates of America,
a national association that checks medical bills for consumers. So go
over your bills carefully. You might spot mistakes that will save you
money—and some insurers pay a reward if you find and report errors.
Food
• Shop the supermarket sale cycle. Food
staples like cereal and chicken hit their lowest prices once every 12
weeks. Make a note when you see sales and you'll know when to stock up
next.
• Make coupon searches simple. There are so many online coupon
sites that searching all of them could be a full-time job. To save time,
stick to just a couple of them. We've found Coupons.com and SmartSource.com
usually have up to 100 deals at a time, compared with no more than 30
coupons in newspaper circulars. And both sites have new mobile versions
that let you scroll through offers from a smart phone without
downloading special software or apps.
[More on Yahoo! Shopping: Outlet Stores Worth the Trip]
• Bid on your groceries. Food auctions aren't common yet, but
they're a growing trend. Auctioneers say you can save 40 percent or more
off typical supermarket prices. We went to a grocery auction website
and found big savings. For example, a box of three DiGiorno Cheese
Stuffed Crust Three Meat Pizzas was $14, about half the price at a local
market; Hickory Farms Summer Sausage and Kellogg's Rice Crispy Treats
were 78 percent less than Amazon.com's prices. Look for local events at
www.auctionzip.com and www.craigslist.org. Check the prices of the items
you want first so you won't overbid, and bring a cooler for pickup.
• Buy store brands. They can save you 50 percent or more compared with brand-name alternatives. Every year we test dozens of store-brand items, and find that many of them are just as good or even better than name-brand products.
• Split a warehouse membership. If you've shied away from those
clubs because you don't have room to store dozens of rolls of paper
towels, packs of soap, and jumbo-sized packages of frozen food, consider
splitting your purchases with someone else. The savings can easily
offset the membership fees, which you can also split. In our price
comparison between clubs and supermarkets, we found savings of as much
as 50 percent or more on such staples as cleaning products, coffee,
drugs, paper goods, and snacks.
• Check social-network offers. More stores are using Facebook,
Foursquare, and Twitter to lure customers with deals. Walmart uses
Facebook to post coupons and specials at the store in or closest to your
ZIP code. Whole Foods offers one-day sales, recipes, and more through
Facebook and Twitter.
Car Expenses
• Update your insurance annually. The
auto coverage you signed up for when your car was new is often more
than you need as it ages and depreciates. It's a good idea to call your
insurance company once a year to see whether you should adjust some
coverage. Every year you don't file a claim or get a ticket, for
example, makes you a lower risk, which could qualify you for a lower
rate. But you have to ask.
• Check the competition. You might find a cheaper policy by calling other insurers for quotes or comparing prices at AccuQuote or Insure.com.
But if you've been with the same company for several years and you've
got multiple policies with that insurer, switching might not save you
much, if anything.
• Shop for the cheapest fuel. FuelPrices.net, GasBuddy, Gas Price Watch, MapQuest, and MSN Autos can help you compare fuel prices in your area.
• Go longer between oil changes. Although car dealer service
departments and oil-change shops might suggest changing your oil every
3,000 miles, modern engines are usually designed to go 7,500 miles or
more between oil changes under normal driving conditions. The shorter
time span is often used only for cars driven in severe conditions, such
as stop-and-go driving, frequent trailer-towing, mountainous terrain, or
dusty conditions. Check your owner's manual for its recommendation.
Pet Care
• Buy pet food at Target or Walmart. When we sent 21 of our secret shoppers to stores around the country to price top-selling brands of dog and cat food,
prices at those two stores were about 20 percent less. Online pet-food
prices were especially high; Target and Walmart beat them by an average
of 50 percent. If your vet has recommended a premium food brand because
your pet has health issues, check prices at both Petsmart and Petco.
• Inquire about price matching. Some stores will match other
retailers' prices. One CR staff member brings circulars or printouts of
online deals when she shops at Petland Discounts. Target matches
competitors' prices and its own sale prices if you have a receipt
showing you paid more within a week before a sale.
• Check out flea-and-tick options. A patent has expired on one of
the active ingredients in Frontline Plus, so new competitors have
emerged, including PetArmor Plus and FiproGuard Plus. At Petco we found a
three-month supply of PetArmor Plus for $28, compared with $50 for
FiproGuard Plus and $62 for Frontline Plus. You might find even bigger
savings on those products at other stores or online.
• Ask vets about costs. If your pet is prescribed a medication
that's also given to humans, compare the vet's price to the cost of
filling it at a drugstore, supermarket pharmacy, or big-box retailer. If
you're shopping for a new veterinarian, call a few offices nearby and
ask what they charge for an annual exam as a gauge of other costs. It
can range from about $35 to $46, according to a 2008 national survey by
the American Animal Hospital Association.
• Skip pet insurance. Our analysis has found most pet owners are better off saving money in an emergency fund.
Entertainment
• Slash restaurant tabs. BiteHunter.com lists restaurant specials and daily deals from other sites, such as Citysearch and Groupon. It's easy to search by cuisine, deal, or restaurant in a particular city. EatDrinkDeals.com posts discounts from national and regional chains.
• Download free e-books. Hundreds of thousands of books published before 1923, including many classic titles, have been digitized by Google or Project Gutenberg
and are offered as free downloads. Some newer titles are free for
promotional reasons. There are free e-books for the Kindle, Kobo, Nook,
and Sony Reader devices. You can also access e-books free on your Nook,
for up to an hour a day, when you're in any Barnes and Noble store. And,
of course, you can always borrow books, books on tape, and DVDs from
your local library.
Clothing
• Go to outlets for off-season duds. In-season items are often made specifically for the outlets, and manufacturers might cut corners, as we've discovered in our tests. Out-of-season clothes, however, might come from their nonoutlet locations and be higher quality. Still, inspect them for defects before you buy.
• Get free shipping. More online retailers are offering it year-round, not just during the holiday season. FreeShipping.org lists dozens of stores that ship free with no minimum purchase.
• Read the labels. Natural fibers, such as 100 percent cotton, wash and wear better than blends. Cheaper fabrics can shrink and are more prone to pilling. Try to avoid items that have to be dry-cleaned.
Download These Money-Saving Apps
These six shopping apps can turn your smart phone into a savings tool. All are free; to find them, search by their name in a Web browser.
Clothing-Sale App: Where
Once you've followed a few steps to tag favorite retailers, it tells you
every time they post a coupon. Works on Android, BlackBerry, iPhone,
Palm Pre, and Windows Phone 7. (The app is called Yowza on the iPhone.)
Fuel-Saving App: Gas Buddy
Finds gas stations near you and shows you their recent prices. Works on Android, BlackBerry, iPhone, and Windows.
Entertainment App: Foursquare
By tracking your location, it alerts you to deals at nearby movie
theaters, museums, restaurants, and other places. It also connects you
to daily deals from Groupon and other social-shopping sites. Works on
Android, BlackBerry, iPhone, and Palm Pre.
Grocery-Coupon App: Cellfire
Loads coupons from more than 3,500 grocery stores and other retailers
onto your loyalty cards. It sends a mobile reminder that you have a
coupon when you enter the store that provided it. Works on Android,
BlackBerry, iPhone, and Windows Phone 7.
Price-Comparison App: PriceGrabber
Lets you know who's selling goods at the best price, including tax and
shipping fees. Scan the item's bar code or type in the product name.
Works on Android and iPhone. Please note that Consumer Reports collects a
fee from Pricegrabber for referring users. We use 100% of those fees to
fund our testing programs. Consumer Reports has no financial
relationship with any retailers.
Yard-Sale App: Garage Sales Tracker
Finds garage sales, flea markets, and consignment shops in your area. Works on the iPhone.
More from Consumer Reports:
- Save Money on Prescription Drug Costs
- Are Outlet Stores Worth the Trip?
- Best and Worst Cars for the Money
Consumer Reports has no relationship with any advertisers on Yahoo!
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