Cut spending by hundreds a month

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Published: July 1, 2008

With the cost of food and gasoline going up and up and up, people are really feeling the pinch. You know the obvious places to save, but there may be other places to look. Consumer Reports dug deep into the family budget to uncover them.

You might be able to drive down your car costs by an average of $65 a month by finding cheaper auto insurance. The Internet makes comparison shopping very easy. In most states, you can go to your state’s insurance department and see what different insurers charge for their policies.

Next, pull out your life-insurance policy. Premiums have dropped dramatically since the 1990s, so if you have an old policy you might be better off replacing it. Optimizing your life insurance could save you an additional $110. And while we’re talking about life insurance, regular exercising can pay off. Once in better shape, get re-rated for a lower premium. A 40-year-old man with a $1 million life-insurance policy could save $50 a month by getting his cholesterol down 30 points. He could save $65 a month by losing 50 pounds and getting down to normal weight, and if he quits smoking, after three years he’ll save $165 a month.

Shopping smarter for food can net you another $200 a month. Try less-expensive brands. Stock up on staples like cereal, pasta, and canned goods when they’re on sale. And cut back on prepared foods. Instead, cook at home more. Every little bit adds up.

Consumer Reports Money Lab says other places to look to cut costs: your talk time. Consider bundling your phone, cable, and Internet services. And if you routinely pay ATM fees, it’s time to shop for another bank—a national one with ATMs where you need them.

Consumer Reports has no commercial relationship with any advertiser or sponsor appearing on this Web site.