“Being on the wrong card can cost people thousands more a year in interest rates and fees,” says Schwark Satyavolu, a co-founder of comparison tool BillShrink.com. “Even if you pay off the balance in full each month, you could be leaving hundreds of dollars on the table in rewards.” Terms and conditions are changing rapidly as banks add fees and jack up interest rates in preparation for the new federal regulations that go into effect on Feb. 22. After that date, compare your options using a site like BillShrink.com or CardRatings.com to make sure you have the best card for your financial situation and spending habits.2) Track your cash
Shoppers can’t account for an average $21 spent each week, according to a September survey by Visa (V). Tallied up, that’s $1,092 per year in mystery purchases. Sign up for a free financial management site like Mint.com or Wesabe.com, which sync with your bank accounts to automatically sort and track purchases. You can also set budgets for individual categories, and receive email or text alerts when your spending nears that pre-set limit.
3) Join loyalty clubs
Retailers offer benefits in loyalty programs, knowing that most customers are apt to forget their cards or otherwise miss out on perks, says Larry Chiagouris, a marketing professor at Pace University in New York City. Don’t make that mistake: Keep cards in your wallet or on a key-ring, or add the account numbers to your smartphone. Loyalty programs can cover varied purchases, including books, movie theater excursions, restaurant meals and even flu shots.
4) Hunt for coupon codes
The marketing strategy of offering coupon codes to cement customer loyalty is increasingly popular with retailers. Take advantage. Step 1: Type a retailer’s name and “code” into Google. Step 2: Use the results to save significantly on your in-store and online purchases.
5) Shop the grocery sales circular
Though many products on circulars only come up on sale once every 10 to 12 weeks, by shopping smart, you can still cut your bill by more than 50% with a combination of coupons, weekly grocery store sales and store rebates. “They’ll practically pay you to take that bag of potato chips out of the store,” says Cindy Chapman, a spokeswoman for social networking site MomsLikeMe.com.
6) Pay cash
Buy-now-pay-later of credit cards sound friendly, but are designed to entice you to spend more. A 2008 study by researchers at the University of Toronto and the Federal Reserve Bank of Kansas City found that the opportunity to earn rewards led more consumers to pay by credit, even if they were already carrying a balance. Instead, flash bills. It will keep you in check and might also lead to discounts on everything from health care to jewelry to gasoline.
7) Reassess your phone plan
Carriers constantly offer new plans and promotions -- which may mean a better deal than your current selection. Use tools at LetsTalk.com and BillShrink.com to compare available options against your current plan. Infrequent talkers (fewer than 200 minutes a month) may save more in the long run by paying an early-termination fee and switching to prepaid service.
8) Cut spending on pets
The fuzziest members of your family need to adhere to the household budget, too. In 2008, pet owners spent an average $670 per dog and $447 per cat on vet care, food, grooming, treats and toys, according to the American Pet Products Association. Pay less by shopping around. Petco offers its signature plush dog toy for $5.97, while Wal-Mart has a three-pack of a similar toy for $7 -- roughly $2.33 apiece.
9) Haggle
“When times get tough, consumers have to get aggressive,” says Scott Testa, an assistant professor of business administration at Cabrini College in Radnor, Pa. “On a high-priced item, you’re crazy if you don’t haggle.” It doesn’t take a hard-line negotiation in most cases, either – you just have to ask if there’s any chance for a better price, he says. For example, 68% of landlords said they would lower rents or give a month or more free to retain tenants, according to a recent Rent.com survey. Collective buying groups like Groupon.com serve as haggling on training wheels, offering prenegotiated discounts if a certain number of shoppers buy in.
10) Seal up your home
Don't let the air you're paying to warm in the winter and cool in the summer escape through cracks around windows, doors, electrical outlets and other places. Enough sealing products like caulk and weather-stripping to block drafts would set you back just $25 to $50. In return, you’ll see your home’s energy efficiency improve by up to 20%, according to the Environmental Protection Agency. For the average household, that could amount to more than $400 annually.
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