Your Money_ The Missing Manual - J. D. Roth [44]
Tip
Living Green: The Missing Manual has a whole chapter about saving energy.
On The Money: Level Payment Plans
Utility bills can make it hard to budget: You might pay $250 for natural gas in December but only $50 in July. Fortunately, many utility companies now offer level payment plans.
When you sign up for such a plan, the company looks at how much energy you used over the past year and divides the total amount by 11 to get a fixed monthly payment. You pay this fixed amount for 11 months, and in the twelfth month you settle up, either paying more (if you used more energy) or getting a refund or credit (if you used less). At the end of each year, your monthly payment rises or falls based on recent usage patterns. (Some utility companies make adjustments more than once per year, but the same principle applies.)
To make budgeting really easy, sign up for a level payment plan and automated billing. Then you only have to deal with your utility bill once a year; the rest of the time, it's paid automatically.
If you're in the market for a new dishwasher, clothes dryer, or other major appliance, be sure to visit the Energy Star website (www.energystar.gov). (Energy Star is a joint program of the Environmental Protection Agency and the Department of Energy; its goal is to "help us all save money and protect the environment through energy efficient products and practices.") The website has lots of useful resources, including a list of Energy Star–qualified products, home improvement tips, and info about home energy audits.
Tip
Many areas have nonprofit organizations that provide in-home energy audits, which can help you improve your home's energy efficiency and turn you on to available tax credits. (They might even give you free compact fluorescent bulbs along with the audit!) Contact your power company and ask for a referral.
The phone company
If your family has a home phone line in addition to a cellphone or two, you're paying too much. Choose one or the other. More and more people are ditching landlines and discovering they don't miss 'em.
Most major cellphone companies give discounts to employees of specific companies and students of specific schools. To see if your school or company qualifies, visit:
Alltel: http://tinyurl.com/alltel-discounts
AT&T: http://tinyurl.com/att-discounts
Sprint: http://tinyurl.com/sprint-discounts
T-Mobile: http://tinyurl.com/tmobile-discounts
Verizon: http://tinyurl.com/verizon-discounts
A quick check of these discount programs could save you 20% or more on your phone plan; plus, you might be able to score a great deal on a new phone.
But that's not the only way to save on phone service. When was the last time you checked to be sure your monthly plan matches your usage? If your plan doesn't have enough minutes, you can get hit with exorbitant fees; if your plan has too many minutes, you're paying for something you never use. Either way, it's time to change plans.
And be sure to check out prepaid phones from providers like Tracfone (www.tracfone.com), NET10 (www.net10.com), T-Mobile (http://tinyurl.com/TM-prepaid), and Virgin Mobile (http://tinyurl.com/VM-prepaid).
With prepaid wireless, you can buy an older, name-brand phone for 10 or 20 bucks. You then pay in advance for as many minutes as you want. When you use them all, you simply "top off" as needed. Light phone users (fewer than 200 minutes per month) will almost certainly save by giving up a monthly contract. Even if you use 400 minutes or more each month, there's a chance that prepaid could cut your costs. (If you need a phone with the latest features, prepaid wireless probably isn't your best bet, but don't rule it out.)
Tip
For more on prepaid phones, check out this article from The Red Tape Chronicles (http://tinyurl.com/MSNBC-prepaid) and this one from Greg Karp's "Spending Smart" column (http://tinyurl.com/karp-prepaid).
On The Money: Slashing Recurring Expenses
Saving money on one-time purchases