The Do-It-Yourself Tax Cut

Nobody likes paying taxes, but the way we Americans complain about them you'd think they were the only way we're getting skinned.

Reality: We're getting nickel-and-dimed all the time, and in lots of ways we don't even notice. And yes, it really adds up. If we counted the cost, most people would be stunned.

OK, tax is center stage right now. Last week was April 15. This week will come "tax freedom day," the notional point in the year when the average citizen starts working for themselves. Many people are eagerly awaiting their rebates and their $600 stimulus checks. (Note: Thanks to the deficit, these aren't really rebates. They're just loans from your kids. Something to think about before you blow the money on a flat-screen TV.) And the presidential campaign may very well hinge on taxes and how to balance the budget.

So here's a radical idea: A do-it-yourself tax cut.

Don't wait for the politicians to pass a law or some bureaucrat to mail you a check. Don't wait for Uncle Sam to put more money in your pocket. Here are 14 ways to do it that you do tomorrow on your own.

1. Change bank accounts. You could be earning at least 3% interest on the balance in your checking account. Instead you're probably earning virtually nothing -- and maybe paying a "relationship" or "account maintenance" fee while the bank has free use of your money. Bankrate.com tracks the best deals around. Savings: An easy $100 a year. At least.

2. Stop using other banks' ATMs. Sure it's a pain to have to remember to go your own bank and get enough cash. But you'll live. If you use other banks' ATMs you may be getting dinged for fees twice -- once by that bank, and one by your own. It adds up. Do it three times a week and it could easily cost you $300 a year.

3. Brown bag it to work. No, I'm not kidding. Just look at the sandwich shops near your office every lunch hour. They're probably packed, recession or not. But if you spend just $8 a day extra eating lunch, that costs $2,100 over a year. Do the math. Just brown bagging once a week, at an $8 saving, saves $416 a year. That's from making your own sandwich once a week.

4. Change your household and car insurance. Shop for a better deal. And raise your deductibles. Savings: Maybe $200.

5. Sign up for rewards credit cards. Outraged at what you're paying for groceries and gasoline? You can often get 3% back on a lot of purchases by signing up for the right cards. It sounds trivial, but these are real savings. Savings: Maybe $200 a year.

6. Get rid of your POTS. That's "Plain Old Telephone Service." If you already have high-speed Internet at home, why are you also paying $40 a month or more for a phone? Switch to a Voice Over Internet Protocol provider like Skype. It costs a few cents a call. Easy saving: At least $400 a year.

7. Change your cell phone plan, or your provider -- or both. You're almost certainly paying too much. If you don't believe me, call your provider and threaten to leave. I'll bet they offer you real savings to stay. What does that say about your current bill? Some companies -- like T Mobile -- are competing aggressively on price. There are plans that can stop you getting skinned when you go over your monthly minutes. Most people can probably save a couple of hundred bucks a year on their bill. And while we're on the subject, do you want the latest phone with all the bells and whistles? Fine, that will be $200. Alternatively you could keep your old phone, and sell the subsidized new one to some other sucker on eBay. That's worth another $100 a year. Total savings: Maybe $300.

8. You pay how much for TV? When you count the cable or satellite service, often in several rooms, premium channels, and TiVo, some people spend well over $100 a month. Basic cable, a Netflix account and a DVD recorder can easily save $600 a year. And DVDs come with an amazing new technology that lets you watch them on any room in the house at no extra fee. You pick the disc up and carry it."

9. The biggest waste of money for most people? "No. 1 on the list is eating out and drinking out," says Jan Geiger, a veteran financial planner in Atlanta, Ga. "That's absolutely, by far, No. 1." She says most people never add it all up. When she makes her clients do just that, "They usually freak out. It can easily be $400, $500 or $600 a month." No, you don't have to live on noodles. Just cutting one $100 meal, or two $50 meals, a month will save you $1,200 a year.

10. Buy a cheaper car and pay cash. Yes, that brand new luxury car says "smart and rich." Unfortunately, it only says that about your car dealer. About you it says "pretentious, and probably in debt."

11. Change your investments. If you're like most Americans, a lot of your money is invested poorly. That means you're not maximizing your investment in tax-free vehicles like 401(k)s and IRAs. And it means you're paying rip-off fees for mediocre mutual funds. Few are worth them: Most of the time you're better off in index funds. Savings: maybe $500 a year.

12. Shop online. When you see something in the stores, don't buy it. Go home and check out the price online. I'll bet it's a lot cheaper, even when you include the shipping. You may also skip state sales tax. Sometimes the savings can be staggering. And if you get an online loyalty credit card, such as the one offered by Amazon, you can save an extra 3%. If you just save 10% this way on a mere $2,000 worth of spending a year, congratulations: You have just made $200.

13. Cutting out crap. Remember before we paid for "iced tea" and water? And half of what people buy has no obvious purpose or merit. If you don't believe me, go to the mall and look around. And most gifts are a total waste of money. I'll bet the typical household could save $500 a year just cutting out crap.

14. Stop wasting energy. No, you don't have to shiver through the winter or swelter in the height of summer. But a handful of simple steps can probably save you $200 a year. Among them: Switching off electronics at the socket overnight so they don't keep draining power.

These are only ballpark figures. The actual savings will vary enormously by household. But just the steps above can save a household thousands a year.

That is, for most, a far bigger number than any tax proposals you will hear about in the campaign.

This is not a political column. The debate about higher taxes or lower spending can be carried on elsewhere. But it does seem to make sense to tackle costs everywhere we find it, and not just in our tax bills.

Write to Brett Arends at brett.arends@wsj.com