AARP Bulletin - July/August 2011

GREAT
WAYS TO
SAVE
2011
9 9

Pricey pooch The most expensive dog ever sold is Hong Dong, or Big Splash in English, a red Tibetan mastiff bought by a Chinese businessman in March 2011. He paid $1.5 million.

5 Let’s twist again. After filling up, twist the gas cap until it clicks. With older vehicles, check for tightness. One in six cars has an improperly fitting or missing gas cap, which can reduce a car’s mileage by as much as 10 percent.

6 Smoke signals. Before you buy a used car, let its tailpipe tip you to trouble. White smoke often results from water or antifreeze entering cylinders, suggesting the engine could overheat. Blue smoke could be caused by a clogged PCV valve or by engine oil entering cylinders, possibly because gaskets failed. Black could indicate excess fuel in cylinders or problems with the carburetor, fuel pump or computer sensors.

7 Spare me. To ensure tire rotations are performed, place white marker on rear tires; you should find it on front tires before you pay the bill.

9 Water works. Keep a full cup in the holder and make a game of avoiding spilling it as you drive. You’ll rein in jackrab-bit starts, sudden stops and higher speeds that can lower your in-town mileage by 5 percent, according to the U.S. Department of Energy.

FINANCIAL 10 Tax break. Many jurisdictions give property tax relief to older homeowners, based on income. Be prepared to submit documentation on your income and any Social Security benefits you may receive.

11 Gave at the office. Charitable donations made via payroll deductions are often overlooked tax deductions. There’s no line on most W-2s for them, but pay stubs or receipts from recipients can prove your generosity.

12 Save with cash. Studies show that people may spend 50 percent more on fast food and other purchases when they pay with a debit or credit card, because parting with cash hurts more. Some retailers, including gas stations, offer discounts to cash customers to avoid paying the card “swipe fee” to a bank.

13 Pay yourself. Put an open
jar in a conspicuous place
in your home. When you do
something you might have
paid for—ironing, cooking,
fixing a good latte—feed the
jar with the amount you’d
have spent. Do the same if
you resist the impulse to buy
something. The money will add
up, fast.

16 Drive a bargain. In many states you can cut your insurance rates if you have a monitoring device put in your car to verify low mileage or safe motoring habits. Or consider dropping your collision insurance if your car is old and not worth much.

17 Compare costs. BillShrink .com analyzes your everyday costs for services like cellphones and cable TV and financial accounts. FindABet terBank.com compares checking account plans at banks and credit unions. BrightScope .com compares 401(k) plans and financial advisers.

18 Got gold? The price has roughly doubled in the last four years, making now a good time to sell unwanted gold jewelry and coins. Comparison-shop to get a fair price, and check the reputation of gold buyers with the Better Business Bureau.

8 Card savers. Choose the right credit card for the pump and cut your costs. Some cash-back credit cards offer particularly high rewards for gas purchases. Check it out at CardHub.com or Cardratings .com. Also, credit cards issued by gas chains may save you up to 5 percent.

14 Cut college costs. Make direct subsidized federal loans your first choice; they’re easier to get, tend to be cheaper, and there’s no interest while you’re in school at least half-time. Having loan payments automatically debited from your bank account can knock down your interest rate by a quarter percentage point or more. For a website that channels contributions from friends and family members to lenders, check out Lily’s List.

15 Prepay. Adding a bit to your monthly payment can dramatically shorten the life of your mortgage and ultimately save you thousands of dollars in interest. Every extra dollar is applied to the loan’s principal. Adding $10 per payment can prune 14 months from a 30-year, 5 percent mortgage for $100,000, and save you $4,500 in interest.

AARP 19 Members save. Get up to 60 percent off, or more, on electronics, flowers, clothing and other products from retailers at the Everyday Savings Center powered by NextJump. Details at everydaysavings center.com/faq.