365 Ways to Live Cheap (3 page)
23. U
SE THE
S
HORT
C
YCLE
Similar to the idea behind washing only full loads, consider using short cycles on your dishwasher and washing machine, especially when the items that you’re washing aren’t particularly dirty, such as work clothing that you may wear in an office. Using the short cycle can reduce the cost of an individual load by up to 50 percent depending on the model, so get in the habit of using the short cycle for most of your machine washing needs.
24. M
AKE
Y
OUR
O
WN
D
ISHWASHING
D
ETERGENT
Dishwashing detergent can be made at home with common cleaning supplies. Just mix one cup of borax and one cup of baking soda in a tub. Some harder water situations may require the addition of a cup or two cups of powdered purchased dishwashing detergent. Just put in two tablespoons of the powder mix (1¨M8 cup) into your dishwasher for each load and save about fifteen cents per load.
Another
tip:
Instead of using Jet Dry in the rinse cycle to make your dishes dry, use a couple caps full of vinegar instead. Much cheaper, same effect.
25. D
ON
’T I
NSTALL
Y
OUR
R
EFRIGERATOR
N
EXT TO
Y
OUR
D
ISHWASHER OR
O
VEN
Many kitchens have this as the default layout, but if you can avoid it, your energy bill will thank you greatly. The natural heat produced by your dishwasher or oven can add heat to the refrigerator if it’s placed nearby, causing the refrigerator to run more frequently to maintain the low temperature. If you can, look for a kitchen layout that places the refrigerator far away from the dishwasher or the oven, allowing your refrigerator to be significantly more energy efficient—and thus easier on your wallet.
26. S
ET
Y
OUR
R
EFRIGERATOR TO THE
W
ARMEST
S
ETTING
; A
DJUST
F
ROM
T
HERE
Many people have their refrigerator and freezer settings much colder than they actually need them to be to keep their food chilled. Instead of keeping your dials turned to the coolest settings, try the opposite— turn them as high as they can go and see how it meets your needs. If you need to, slowly adjust the temperature downward. A reasonable setting on your refrigerator and your freezer can save significant money over time, as your compressor will kick on much less often and thus save money on energy costs.
Another tip:
Pull out your refrigerator every six months and vacuum out the back of it, making sure to clean dust from the coils. This will keep your refrigerator running as efficiently as possible.
27. I
NVEST IN A
D
EEP
F
REEZER
If you have space (in your kitchen, garage, or basement), invest in a deep freezer. A deep freezer allows you to buy your food in bulk, saving significant amounts of money. For example, by contacting a meat locker directly, you can purchase meat in large quantities directly from the provider, filling up your freezer with meat discounted at 30 percent or more compared to what you’d pay at the meat counter at the grocery store. See a great deal at the store? You can stock up big time, putting the excess in the freezer for later use. The use of a deep freezer can save approximately 15 percent on your annual food bill without a major increase in your energy use.
28. S
TART AN
A
UTOMATIC
A
PPLIANCE
R
EPLACEMENT
F
UND
One of the “sneaky” expenses that often starts people sliding down a slippery slope into debt is the unexpected failure of an essential appliance, often at the worst possible time. This usually means that people run out and buy a new appliance on credit without having the money to pay the bill. They are then running short for the next year or so as they pay off that extra bill—and hoping nothing else goes wrong while they’re paying it off. Here’s a better solution: Take tip #10 and put it to use. Put aside a tiny amount, $10 a week, toward appliance replacement. You’ve probably already saved that $10 a week by using other tips in this book. If you start doing it now and your refrigerator fails in a year, you’ll have $520 already in hand to pay that bill. If the water heater fails two years after that, you’ll have $1,040 in hand to cover that bill. All it takes is $10 a week, and if you set up the transfer to be automatic, you’ll never notice it—until you need it, that is.
C
HEAP
T
ACTIC
$
FOR
A
UTOMOBILES
29 Focus on Reliability and Fuel Efficiency
31 Don’t Buy a Service Contract or an Extended Warranty
34 Don’t Get an Oil Change Every 3,000 Miles
35 Use the Manufacturer’s Maintenance Schedule
37 Practice Good Gas Conservation Habits
41 Eliminate One of Your Cars Entirely
42 Don’t Speed—Instead, Use Cruise Control
43 Don’t Get Optional Stuff During Maintenance
44 Shop Around for Car Repairs
45 Pay for Car Repairs with a Credit Card
46 Plan Ahead for a Car Replacement
29. F
OCUS ON
R
ELIABILITY AND
F
UEL
E
FFICIENCY
It’s easy to get excited about all the latest features when you’re considering a car purchase, but instead of focusing on the D
VD
player or leather seats, focus on these buying tactics instead:
Do your research before you go near a car dealership. Examine the most recent car-buying issue of
Consumer Reports
, for starters, and carefully study their findings on reliability as well as their overall conclusions. Cars marked as highly reliable have significantly lower expenses for repairs over the lifetime of the car, directly saving you cash.
Focus on buying late-model used cars, as they often have the best long-term value for the dollar.
Put a high emphasis on fuel efficiency. Over 75,000 miles of driving, a 15 mpg car guzzles 5,000 gallons of gas, while a 20 mpg car only uses 3,750 gallons. At $4 per gallon, that’s a savings of $5,000—and that’s if gas prices hold steady.
Know your numbers before you go. Use the Kelley Blue Book (
www.kbb.com
) to find out the value of your current car (if you’re planning on trading) and the value of the car you’re looking at. You will then have a sense of how fair the offer is.
30. R
EAD THE
M
ANUAL
Your car’s manual is a treasure trove of tips and bits of information that can save you a lot of money over the long haul. It should be your primary source for information about how to care for your car and maximize its lifespan. Most of the information available through popular culture about automobile care and maintenance is placed there by organizations wanting to maximize their profits by convincing you that you need maintenance, replacements, and upgrades far more frequently than you actually need them. Read the next few tips and see how often the car manual comes into play to save you money.
31. D
ON
’T B
UY A
S
ERVICE
C
ONTRACT OR AN
E
XTENDED
W
ARRANTY
When you try to make an automobile purchase, the dealer will often try to encourage you to purchase a service contract or an extended warranty on your new vehicle. Say no. If you’re interested in such plans, you can shop around for a low-cost service plan. If you’re concerned about a warranty, you can purchase one directly from a warranty provider such as Warranty Direct without paying the additional dealer markup. Plus, it gives you time while your basic warranty is in place to do the research and pick out the warranty that’s right for you—and it will be far cheaper than what you’d buy at the dealership.
32. A
IR
U
P
A
LL OF
Y
OUR
T
IRES
Airing up a car tire is a very simple free procedure that takes only a couple of moments, yet can save you a bundle over time. According to the Car Care Council, a mere 1 P
SI
drop in air pressure in all four tires can reduce your gas mileage by 0.4 percent, and your car can easily be 10 P
SI
low without even noticing it—a 4 percent reduction in gas mileage. Over 10,000 miles in a 20 mpg car with gas at $4 a gallon, you can save yourself $80 by just airing them up. Look inside your car’s manual to find out the recommended maximum pressure for tires on your automobile and also to find out details on the exact procedure to follow.
33. B
UY THE
C
HEAP
G
AS
The idea that you need high-octane gas for your car is mostly a relic from the days of older cars that could actually maximize the use of higher-octane gas. Today, most cars run just fine on low-octane fuel.
Check your owner’s manual to see what the recommendation is for your car and buy the cheapest you can within that recommendation.
If buying cheaper gas saves you ten cents per gallon on a 20 mpg car, over the course of 10,000 miles, you’ll save $50 in lower gas bills.
34. D
ON
’T G
ET AN
O
IL
C
HANGE
E
VERY
3,000 M
ILES
The mantra for oil changes is that you should get one every 3,000 miles, and most car owners quickly run off to get that oil change right on schedule. You might be surprised to find that the owner’s manual suggests an oil change every 5,000 miles or, on some models, even less frequently. In fact, 5,000 miles is the recommendation from
Consumer Reports
as well as the guys from N
PR
’s
Car Talk
. If you drive your car for 60,000 miles while you own it, just following the factory recommendations saves you eight oil changes.