How to spend less on everything

How to spend less on everything

Spend Less on Everything

The recession has caused many Americans to cut their spending, pay down their debts, and build their savings. And with the economy's tepid recovery, it's still important to keep your spending in check. Even if you think you've cut just about all the fat from your budget, you can probably slash even more with our savvy shopping advice. Keep reading to find out how to cut your expenses in these areas.

Health Care

• Comparison shop every year. If you have a choice of health plans at work or through Medicare, review your options during the open-enrollment period (usually in the fall). Find out what each plan covers so you know what you'll have to pay. Consider deductibles, co-payments, and other cost-sharing in addition to the monthly premium. If you're buying your own policy, go to HealthCare.gov, which lets you screen every plan sold in your state to find one that will meet your needs. Then consult an independent broker to sort through your options.

• Seek cost-effective treatments. Check out prescription drugs on BestBuyDrugs.org, a Consumer Reports website that compares medications and lists the most cost-effective and safest ones for your condition.

• Buy drugs at big-box stores. We compared the prices of over-the-counter drugs and found they were up to 50 percent cheaper at Target and Walmart than at local supermarkets across the U.S. Those two stores also charge just $4 for a 30-day supply of many generic prescription drugs. For an even better bargain, get a 90-day supply for $10. Similar programs are offered by CVS, Kmart, Kroger, Rite Aid, Sam's Club, and Walgreens, although some, like CVS, charge an annual membership fee. Some local pharmacies will match the low prices at chain stores, but you have to ask.

• Check bills for errors. Eight of 10 hospital bills contain mistakes, according to the Medical Billing Advocates of America, a national association that checks medical bills for consumers. So go over your bills carefully. You might spot mistakes that will save you money—and some insurers pay a reward if you find and report errors.

Food

Food staples like cereal and chicken hit their lowest prices once every 12 weeks. Make a note when you see sales and you'll know when to stock up next.

• Make coupon searches simple. There are so many online coupon sites that searching all of them could be a full-time job. To save time, stick to just a couple of them. We've found Coupons.com and SmartSource.com usually have up to 100 deals at a time, compared with no more than 30 coupons in newspaper circulars. And both sites have new mobile versions that let you scroll through offers from a smart phone without downloading special software or apps.

• Bid on your groceries. Food auctions aren't common yet, but they're a growing trend. Auctioneers say you can save 40 percent or more off typical supermarket prices. We went to a grocery auction website and found big savings. For example, a box of three DiGiorno Cheese Stuffed Crust Three Meat Pizzas was $14, about half the price at a local market; Hickory Farms Summer Sausage and Kellogg's Rice Crispy Treats were 78 percent less than Amazon.com's prices. Look for local events at www.auctionzip.com and www.craigslist.org. Check the prices of the items you want first so you won't overbid, and bring a cooler for pickup.

• Buy store brands. They can save you 50 percent or more compared with brand-name alternatives. Every year we test dozens of store-brand items, and find that many of them are just as good or even better than name-brand products.

• Split a warehouse membership. If you've shied away from those clubs because you don't have room to store dozens of rolls of paper towels, packs of soap, and jumbo-sized packages of frozen food, consider splitting your purchases with someone else. The savings can easily offset the membership fees, which you can also split. In our price comparison between clubs and supermarkets, we found savings of as much as 50 percent or more on such staples as cleaning products, coffee, drugs, paper goods, and snacks.

• Check social-network offers. More stores are using Facebook, Foursquare, and Twitter to lure customers with deals. Walmart uses Facebook to post coupons and specials at the store in or closest to your ZIP code. Whole Foods offers one-day sales, recipes, and more through Facebook and Twitter.

 How to spend less on everything