By Mike DuBose
With prices soaring, saving is a critical lifestyle for living comfortably, preparing for unexpected expenses, and achieving secure retirements. Previously, we shared broad saving categories—seeking deals, developing budgets, and striving to be debt free. Let’s continue our journey.
Homes: If planning to buy real estate, markets are scarce but may improve since interest rates could decline later in 2024. Families spend 30 percent of monthly income on housing. Long-term, to save money and interest, pay extra towards your monthly mortgage’s principal. Buying energy-efficient appliances, such as high-SEER heating and air equipment (HVAC), are worthy up-front investments. Unfortunately, foreign-made appliances, using cheap parts in washers and dryers, often experience major equipment problems. Purchase long-term, inexpensive warranties since moving parts will break, resulting in higher-after-purchase costs. While initially expensive, US-Made Speed Queen home-commercial washers/dryers with 20+ year lifespans and seven-year parts/labor warranties are excellent.
Home utilities consume 10 percent of budgets. Install R-38 attic insulation to reduce energy consumption which increases re-sale values. Programmable thermostats save money and improve sleep during cooler months. If you’re a utility-cooperative member, like Mid-Carolina Electric, avoid using major appliances, such as clothes dryers, during high-demand-times (6-cents per kilowatt hour off-peak versus $12 KWH at peak hours).
To reduce harmful dust and allergens, select high-MERV-14+ HVAC filters from Amazon and change regularly to reduce energy. Install HVAC germ-killing-UV lights that create healthier interior air. Use energy-efficient, white-light bulbs to save and brighten homes.
Purchase service maintenance agreements from HVAC businesses to maximize efficiency. These partnerships provide priority during emergencies. Many family-owned companies have been purchased by out-of-state, profit-driven-large businesses. Use caution with commission-based HVAC staff who are pressured to sell services you don’t need—always ask for senior service technicians.
For serious home projects, outline your desires, inquire with friends about proven, quality vendors, and patiently secure bids to avoid nightmares. Learn tips from expert contractors while saving money. When project details are finalized: (1)-select reputable professionals who may match lower bids; (2)-sign written agreements containing exact project details and expectations; (3)-state payment schedules and specifically what needs to be completed for workers to receive payments (never pay upfront or prematurely); and (4)-make final settlements when all work is satisfactorily completed. Utilize credit cards, without vendor fees, which provide you with more rights—obtain detailed-receipts if paying with cash/checks.
Automobiles: The second-largest family-spending category is transportation (about $10,000 annually of average family’s income). Car and Driver Magazine reports, “New vehicles lose 20+ percent of their original value in the first twelve months—$50,000 SUVs are worth less than $40,000 a year later.” Custom-tailor your desired brands/models by visiting manufacturers’ websites to examine cars’ colors, options, and specifications. The Wall Street Journal recommends gasoline-hybrid-engines which cost $1,500 extra but increase re-sale value, provide higher horsepower, and achieve very-high gas mileage (Toyota RAV4 SUV generates 41 city-mpg).
E-mail your various selections to large-volume Internet sales reps who provide the best deals. We recently had successful experiences with Tatum Macomson (Mark Ficken Ford/Lincoln dealership in Charlotte, NC). Avoid providing telephone numbers, rather communicate by e-mail to avoid verbal, undocumented conversations. On-line efforts bypass stressful on-site sales force. Research manufacturers’ low-interest and returning customer specials. Avoid hidden fees by requesting bottom-line “out-the-door-costs.” Solicit manufacturers’ window-stickers which lists options. Carefully examine sales paperwork at home in advance prior to signing. Avoid being lured into attractive low monthly payments on long-term loans with high interest rates.
Car warranties have improved with longer time periods. Thus, extended versions may be an unnecessary expense. Avoid trading cars for lower prices with dealerships. Determine your car’s retail or trade-in-value using websites like www.kbb.com. Have automobiles cleaned and detailed ($200)—post plenty of photos when advertising on Facebook Marketing, eBay, and Craig’s list. We experienced remarkable success selling cars using these sources.
Non-profit Consumer Reports (CR) recommends purchasing slightly-used automobiles 2-5 years old (20,000 miles-or-less) with warranties to avoid hidden headaches. They experience slower depreciation, decreased loan-payments, and lower taxes/insurance—CarMax.com provides used cars’ histories on-line and has 200 stores that buy/sell automobiles. Read CR’s automobile independent reviews of cars’ reliability and customer-satisfaction.
Retain your car’s maintenance documentation for buyers. Ensure tire air pressure is correct which increases miles-per-gallon and reduces tire-wear (specs are on interior driver-side door-panels). Modern lubricants allow oil change intervals around 7,500 versus 3,000 miles. Because gasoline is a major car expense, seek low-cost-gas stations (Cosco, Murphy, and Kroger) and orderly plan your driving trips to conserve.
Regretfully, automobile-service shops often pay their staff based on repairs, some of which you don’t need. Select honest, competent mechanics to maintain your car and examine your proposed purchases. Macky Monts with Love Chevrolet is an excellent, trustworthy service supervisor for most car brands.
Foods: Groceries and eating out consume 20 percent of household spending. Some prices have stabilized though we’re getting less and paying more. Register with store-membership programs to receive discounts, sales alerts, and gasoline savings. Selected on-line account coupons materialize when checking out. Fewer stores mail advertisements so visit them on-line or in-person. Some offer 5 percent senior-discount-days and “Buy-One-Get-One-Free” specials. Purchase low-cost freezers to stockpile food when deals surface. Never visit stores hungry (or with children) and prepare advanced lists w/pricing. Consider coupon apps like Ibotta, Fetch, and shopmium. While costs vary amongst grocery chains, Walmart, Food Lion, and Aldi are lower—knowing your prices is important.
Purchase restaurant gift cards when discounted 15-20 percent sales appear. Register with favorite eateries to generate points for discounts and specials. Food chains run happy hours, early-bird-pricing, and specials (Bonefish Grill occasionally offers two-person meals ($48 total), Chapin Chophouse promotes $29 weekday juicy-steak bargains, and Outback advertises $17 three-course-selections).
Saving is fun. Stay tuned for more tips.
Visit Mike’s nonprofit website www.mikedubose.com to register for his monthly publications and free access to his books, including “The Art of Building Great Businesses.” The website contains 100+ published articles he has written on business, travel, and personal topics, in addition to health research with Surb Guram, MD and David Hurst, DVM.
