Just finding out your extra cash which are hidden in your budget, digging out where you have cash to spare, and making good use of them, you will gain some extra prize.
Every so often, it's a good idea to review your expenses to see if you're getting the best deals on things like phone service, insurance, credit cards, and mortgage rates. Then you can figure out if you're throwing away money on items you don't really need.
Here are 10 tips for uncovering hidden cash in your budget. And to make this a truly worthwhile treasure hunt, make a commitment to take the money you free up and invest it - instead of splurging on a momentary treat.
1. Switch to a cheaper long distance carrier. Many discount providers offer vastly better deals than the Baby Bells. To compare rates, go to SaveOnPhone.com
2. Shop for insurance deals. Insurance rates often vary dramatically for the same coverage. For auto insurance, consider a direct seller such as Geico . You may be able to save a bundle compared with the behemoth State Farm or Allstate. For term life insurance, try an online quote service. For no charge, they'll screen hundreds of insurance companies to come up with the best value for your needs.
3. Consider raising your insurance deductibles. Even by raising your deductibles just a few hundred dollars can save you more than that every year in lower premiums. But if you do, be sure you understand your coverage and can handle the increased potential out-of-pocket expense.
4. Lower your credit card interest rates. You may be able to reduce your rates simply by calling your card issuers and asking for a better rate. You also should be able to get annual fees reversed. Better yet, put your credit cards in the freezer and use cold cash instead. For answers to all your credit card questions, visit CardWeb.com.
5. Pump your own gas. Self-serve prices can be $0.30 to $0.50 less per gallon than full serve at your local gas station. Over the course of a year, those dimes add up.
6. Use store coupons and join supermarket buyer's clubs. You could save 10 bucks every time you shop.
7. Cancel subscriptions to services you don't use. Are you reading all those magazines every month? Is it worth the extra fees to surf past those premium cable TV channels? Are you paying your local health club for workouts that consist of you rationalizing why you don't have time to work out? Cancel whatever you're not using.
8. Use generic prescriptions and over-the-counter drugs. At a chain drugstore, a bottle of 100 brand-name aspirin costs $6.99. The same size for the store brand costs $2.49. Aspirin is aspirin. The price difference between brand name drugs and generic drugs runs from 35% to 95%, according to a recent Congressional Budget Office study.
9. Consider investing in a home warranty. Typical warranties cover all major appliances, electrical wiring, plumbing, heating and air conditioning, and a host of other costly-to-replace home items. While this option actually adds an annual premium to your insurance coverage, it can easily pay for itself with just a couple of claims. One of the biggest home warranty companies is Fidelity National.
10. Eat out one less time a week. A family of four could save $40 - $60 or more by taking a raincheck on one restaurant meal. And think of the health benefits of not eating all that sodium and sugar you typically find in restaurant food.
