Part 3: 10 ways to save $1,000

NEW YORK – Sometimes it takes creativity to cut back. Whether you're getting squeezed by credit card bills or saving for a big purchase like a car or home, there are some easy ways to save big chunks of change many people aren't thinking about. Here are a few, with assists from personal finance experts Jeff Yeager and Lynnette Khalfani-Cox.

1: Haggle

Paying full price is so 2005. But if you're like many Americans, you can't negotiate your way out of a parking lot. Learn and save. Things such as rent, bank fees, electronics, apparel and even food can be had at a discount just by asking -- or by offering to pay cash.

2: Get neighborly

If you stay closer to home, you'll save big. AAA estimates it costs more than $8,000 a year to operate the average car. Driving 15 percent less amounts to a $1,200 savings in that case.

3: Raise your deductibles

On home and car insurance, agreeing to pay a higher deductible, say $1,000 instead of $250 or $500, can save you a bundle in premiums.

4: Choose term life insurance

You're only covered for a set amount of years, but you can get a lot more for a lot less cash. A 20- or 30-year term policy will cover the life of a mortgage and be there until kids are out of college. For a healthy 35-year-old man, $500,000 of insurance can be had for $30 a month for 20 years. That same amount in whole life could cost hundreds a month.

5: Butt out

Taxes on smokes are going up again, putting the average price of a pack of Marlboros at more than $5. A pack a day at that price costs $1,825 a year.

6: Open an IDA

An individual development account is a special savings account that helps low-income workers buy homes or cars or start businesses. The accounts are matched by donated dollars at a 1-to-1 or 1-to-2 ratio. More people qualify than one might think. Visit www.idanetwork.org to find out more.

7: Drive a stick

They can run about $800 less than an automatic and get two to four miles a gallon more, according to Consumer Reports. They cost less to fix, and you earn cool points.

8: Get a roommate

Your home is typically your biggest monthly expense. Whether you rent or own, cut your cost and make a new friend.

9: Take a staycation

Turn off the phone, disconnect the computer and stop your mail. Check for resident discounts on local attractions and explore some great restaurants.

10: Do some sit-ups

Is that New Year's resolution slimming your wallet more than your waist? Consider ditching the pricey gym membership and save on gas getting there.

news source : http://www.unionleader.com/