Tuesday, April 6, 2010

Save Money on the Big Things

In the past, I mentioned the book Smart Couples Finish Rich by David Bach in which Bach refers to a latte factor. Basically, he refers to the fact that we could save $20-40 per month if we ordered one or two less lattes a week. While saving $20-40 per month is great, these days, it really isn't going to make enough of a difference.

That is why I was thrilled to learn about a book called Save Big: Cut Your Top 5 Costs and Save Thousands by Elisabeth Leamy. In this book, Leamy discusses how you can save tens to hundreds of thousands of dollars on your mortgage, cars, credit, health insurance and groceries.

Here are a few of the ideas mentioned in the book:

  • Target offers price matching. Target usually has a pretty low price on items, but if you see it somewhere else for a lower price, just bring in the circular ad for that other store and Target will match the price. Just be sure to bring the entire circular so that Target can verify the date of the ad. Not only can this price matching save you money, but also time on just shopping at one store.
  • Paying extra toward your mortgage lowers your principal. Because the interest of a mortgage is based on the principal, you will pay less in interest over the life of your loan. So, not only will you pay less in the long run, you will also pay off your mortgage at a faster rate.
  • You can save money by avoiding the annual fees on a credit card. While credit cards may offer benefits like frequent flier miles, you should really evaluate if you use those miles. A card that pays you back for spending on the card is obviously a thoughtless way to save money.

To read about more about Leamy's Save Big tips on Good Morning America, click here.

I am off to get my copy of this book now...I would love to save thousands of dollars!

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