How to Save $5,087 This Year

Common-cents math that can really make a difference.

Looking to cut down on your expenses? Here are a few simple ways to squeeze out more money from even the tightest budget.
Grow your savings account. Some major credit-card providers help you save with programs that round up purchase totals to the next dollar. So if you spend $39.17 on new sneakers for your child, 83¢ goes into your savings account. Savings limits vary by card and accrue according to how much you use that card — but even one dollar’s worth of rounding up on most days of the year could net you $300.
Make your own lattes. Instead of buying $3 lattes every weekday morning at a pricey café, purchase an espresso machine for around $40 and make your own. Even after your $40 investment, you’ll save around $740.
Consolidate credit-card debt. You can save money by getting a card with zero interest for the first year and paying it off before the 12 months expire. On a $5,000 balance, with an annual rate of 18%, you’ll save $900 in interest expense.
Enjoy drinks at home. Restaurants make a lot of money on alcohol sales. Outsmart them by having a glass of wine (about $8) or bottle of beer (about $4) before you go out or when you get home. Or choose a Bring Your Own Bottle (BYOB) restaurant, where you supply the drinks and pay a nominal corking fee. Do this once a week and save $624.
Consider carpooling. With gas prices hovering around $3 per gallon, scale back on unnecessary trips. Do you drive your child five miles to gymnastics class three times a week? Carpool with other parents and cut out two of those round trips. If you get around 10 miles a gallon, your yearly savings will be $312.
Cut cell-phone costs. Got teens? Texting costs an average of 10¢ per message. Some companies offer a $40 per month plan that offers unlimited texting. If your teen sends 200 messages a week — and this is conservative for most — that’s a whopping $20 per week, or $1,040 a year. After paying, say, an extra $60 per year (including the additional $5 a month for the unlimited texting) on the plan, you save $980.
Hop online for coupons. Look for two-for-one dinner coupons or check out www.restaurant.com to get $25 coupons for only $10. That’s a net savings of $15 on your meal. Do this every week and save $780.
Use a programmable thermostat. If you’re typically out during the day, your home doesn’t need to be maintained at a comfortable 72°. A programmable thermostat allows you to pre-program temperature settings. You can buy a basic model at most hardware stores for about $33. According to the Environmental Protection Agency’s Energy Star Website, using this technology can save you about $150 a year in energy costs, for a net savings of $117.
Read newspapers online. Here’s a way to save both money and trees: Cancel your newspaper subscription and read the paper online for free. For a major paper, you would save $143.
Raise your homeowners insurance deductible. If you have a low deductible, consider bumping it up to $1,000. You’ll save as much as 24% on premiums. According to the Insurance Information Institute, the average annual premium for homeowners insurance is $764. Increase your deductible and save $191.