We had a great time planning this money saving segment with Farnoosh Torabi and her producer Chris Murphy at Yahoo! Finance.
We planned on several more tips being shared, but in the end had to shorten the spot. Below are all of the tips we discussed in the video (at the bottom of the page) and more.
Happy Savings!
- Super Savers...Re-quote their auto insurance every two to three years. According to the Economides family, only 25% of Americans actively seek a better auto quote every couple of years. I’ve also read behavioral research pointing to the fact that consumers tend not to challenge fixed costs (like insurance, gym membership fees and their mortgage) because of the adage “if it ain’t broke, why fix it?” Well, the math is pretty compelling. The family says it has saved $66 a month, over $700 a year, by going with a different auto insurance company offering the same exact coverage. Do this with your other insurances (say home/rental) and the savings could easily double.
- Super Savers…Invest in a programmable thermostat. They cost anywhere from $30 to $100 (cheaper if you buy on eBay). Program the thermostat so the temperature drops when you are out of the house and returns to a comfortable temperature a half hour before you get home. The family estimates this saves families $300 to $600 a year. The Economides family did their research using Consumer Reports and settled on a Lux TX9000TS programmable thermostat
– they purchased two of them on eBay for $60. - Super Savers…Grocery shop ONCE a month. The family – unlike coupon experts who advocate hitting the grocery store frequently to bank on coupons – says it’s better to stay out of the stores. Shop less. Instead, take stock of what you have, make a meal plan for the month and buy what’s on sale. They estimate it can cut grocery bills in HALF. For a family of four, they figure that’s a savings of $400 a month or $4800 a year. (one add-on tip to this is to stock up on seasonal meats that go on sale, like turkey around thanksgiving and ham around Christmas and FREEZE your food. The family is big on this tip. They actually call the freezer “the only money-making tool you can put in your kitchen!”). You can read hundreds of money saving grocery tips in their newest book, Cut Your Grocery Bill in Half.
- Super Savers…Buy Used. This may seem obvious, but the family is adamant about buying pre-owned everything: cars, clothes, appliances, even PAINT from Home Depot. The store actually has a section of returned custom-made paint that they sell for $5 instead of $30—it’s referred to as “Ooops Mountain.” Check your local store for details. Their daughter, Becky, just repainted her room using a super high quality Behr paint in the exact color she was looking for . . . it just happened to be on Ooops Mountain for $5!
- Super Savers…Take Their Time. Their philosophy is that the more time and research you invest in a purchasing decision – especially big ticket items like cars, furniture, etc. – the more likely you will save BIG. The family figures this could mean saving hundreds of thousands of dollars over a lifetime. The idea is that you usually have to dig around for real bargains.
- Super Savers…Have a plan for their money. They say that the single most powerful money saving tool they utilize is a budget. While most people cringe at the “B” word, the Economides family says that a budgeting system produces total financial freedom. By using a written, monthly budget for over 28 years, they were able to pay off their first home in 9 years on an average income of $35,000; pay cash for all of their cars, take fantastic, debt-free vacations and put their kids through college without a single loan (they have 5 kids!)! You can read about their budgeting system in their first book (a NY Times Best Seller), America’s Cheapest Family Gets You Right On The Money. If you prefer an computer-based system, they suggest using Mvelopes.com (read more here). It’s the only online budgeting system that allows you to save money in advance of expected expenses—just like Steve & Annette do.