50 Ways to Save Money
Consumer Reports experts offer consumers savvy saving suggestions

YONKERS, NY- How can your good credit record save you money on car insurance? Is there a time of the year when it's cheaper to buy a TV set? Consumer Reports brings you the answer to these and other money-saving questions in the May 2002 cover story "50 Ways to Save Money," available free from the home page of www.ConsumerReports.org for one month.

Cost-cutting is nothing new. But the recent economic downturn has made the homely virtue of thrift more compelling. A five percent jobless rate and high credit-card debt make breadwinners anxious to build up cash reserves and welcome into their lives a new financial discipline. Consumer Reports' testing laboratories -from Appliances to Autos, Electronics, Foods, Home Improvement and Textiles- have joined with CR's travel, finance, health, and market intelligence staffs to bring consumers practical money-saving tips.

"Who knew you could save nearly $400 a year on an $8,400 credit-card balance just by asking your company to lower your rate from 17.9% a year to 9.9% and repaying it in 36 months? Companies pay an average of $140 to acquire a new customer so the company doesn't want to lose you, particularly if you carry balances," says Consumer Reports Editor Margot Slade.

Consumer Reports has been providing consumers with information and advice on goods, services, health, and personal finance since 1936. More than 100 testing experts work in 50 labs at its National Testing and Research Center in Yonkers, NY and its 327-acre Auto Test Center in East Haddam, CT. To supplement laboratory testing, the Survey Research Department gathers -through an Annual Questionnaire- the experiences that thousands of subscribers have had with products and services.

The May story is your chance to have decades of research right at your fingertips. It covers 11 areas of expertise, namely: insurance, investments, banking, energy, personal care, debt, driving, shopping, telecom, entertainment, and taxes. You'll learn how to manage your money smartly, regardless of how the economy goes.

Taking these simple steps in your day-to-day life could save you money and keep you prepared for the times ahead. "Consumers can pick and choose what suits them best. But they should make sure to leave room for frills, however. If they don't indulge in an occasional treat, they will never be able to stick to the program," adds Slade.

How to save money with Consumer Reports Debt Pay an extra $100 on your mortgage each month. Doing so will trim more than 5 years off a 30-year mortgage and a total of $63,309 off the interest charges (on a 7 percent, $200,000 mortgage) you'll pay over the life of the loan. Auto Insurance Ask for a premium rate on your auto insurance. Insurance companies sort customers according to the likelihood that they will file a claim. A clean driving record and a good credit score, which insurers believe is indicative of people less likely to file claims, can substantially lower the cost of your auto insurance. Investments Don't buy stock mutual funds in the last six weeks of the year, when they typically make dividend and capital-gains distributions. You will wind up paying taxes on funds you owned for only a few days. Banking Link your checking account with your money-market account so that you have overdraft protection. Doing so costs nothing, and could save you the average bounced check fees of $25. Don't take the chance of accidentally incurring one. Energy Turn off computers and TVs when not in use. A 36-inch color TV uses 133 watts. Leaving it on eight hours a day costs about $33 a year. Shopping Shop during the right season for bargains. You can usually find good buys when new models are introduced and retailers must get rid of older merchandise. In the spring, look for portable audio products, and room air conditioners. Late summer brings deals on TVs. Entertainment Form a baby-sitting cooperative with friends and neighbors. Hiring a teenager for four or five hours on Saturday night can easily add $20 or more to an evening out. Exchanging hours instead can save your money and leave your kids with adults you can trust.

 

"50 Ways to Save Money" is among the useful consumer information available free of charge on www.ConsumerReports.org. To subscribe to Consumer Reports call 1-800-234-1645.

MAY 2002
The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes. Consumer Reports® is published by Consumers Union, an independent, nonprofit testing and information-gathering organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.
OPI:MTA:3/27/02