5 big bills you can cut fast

By Bankrate.com

As the economy weakens and prices soar on everything from gas to groceries, we're all looking for quick ways to cut expenses and hold on to more cash.

Fortunately, there are plenty of ways to chop your spending without a lot of time or hassle. Add them all up, and you could trim your annual expenses by hundreds of dollars or more.

Energy and gas savings

Energy costs are boiling over. The U.S. Department of Energy estimates Americans will typically spend $2,350 on home energy costs in 2008, up from $2,100 a year ago.

Moreover, households are slated to spend $3,950 on gas for the year, up from $3,000 in 2007.

Fortunately, some relatively cheap fixes are available, and many begin in the home.

For example, weatherstripping, caulking doors or sealing windows can keep out cold and heat, lowering your heating and cooling bills.

"Every little step helps, and if you can't afford new windows or storm windows, plastic film kits aren't a bad alternative," says Ronnie Kweller, the deputy director of communications at the Alliance to Save Energy.

Other tips for cutting home energy costs include:

• Installing a programmable thermostat. These handy gadgets let you turn up the heat or air conditioning just before you get home rather than paying to keep your empty dwelling comfy all day. Households that use these thermostats typically save $180 per year, far more than the roughly $100 it costs to purchase the thermostat.

• Switching to energy-efficient light bulbs. Yes, they do cost more than traditional bulbs, but they wind up saving money because they use two-thirds less energy and can last 10 times longer, Kweller says. That computes to savings of $50 per bulb. For more reasons, see "A bright way to cut your power bill."

• Being efficient. Clean and change furnace air filters and wrap your water heater. These moves help your appliances run more efficiently and cheaply. Sealing ducts on air and heating systems will improve efficiency by as much as 20%, according to the Alliance to Save Energy.

• Lower the water-heater temperature to 130 degrees. That's hot enough to kill germs and safely wash dishes. Do laundry in cold water.

For more tips, see "14 ways to lower your heating bill."

Meanwhile, you can trim vehicle gas costs with the following steps:

• Adopt good driving habits. You'll save a bundle if you stop speeding. If you typically race around at 70 mph instead of 55 mph, you're lowering your vehicle's fuel efficiency by as much as 17%, according to the American Council for an Energy-Efficient Economy.

• Pump up your tires. Tires lose about a pound of pressure a month, and if you drive with tires that are 3 pounds underinflated, your vehicle's fuel economy drops by 1%, the council says.

• Clean your car. If your car resembles a junkyard on wheels, clean it out. If you're hauling around 100 extra pounds, for example, you're lowering fuel efficiency by up to 2%.

For more ideas, see "12 ways to find cheaper gas."

Food and groceries

The average American household spends $6,111 per year on food, according to the U.S. Department of Labor's Consumer Expenditure Survey. But with prices rising quickly, food is taking an increasingly bigger bite out of our budgets.

How can you save on something so fundamental? It's actually not difficult. A family of four can slash $240 from its monthly food budget by switching from pricey meals to lower-cost options, according to the U.S. Department of Agriculture.

The key is to embrace culinary change rather than fearing it.

"We can't be doing the same thing the same old way," says Sheryl Garrett, the author of the "Personal Finance Workbook for Dummies."

Store shelves are crammed with relatively expensive prepackaged convenience foods designed to save time, Garrett says.

"But what we need to do is try to remember two simple words: whole foods," she says. "Instead of buying prepared, frozen, twice-baked potatoes, buy a real live whole potato. It costs a fraction of the price -- pennies per pound. And it probably even tastes better."

Here are some ideas for saving at the supermarket:

• Buy food less frequently. If you're running to the market before dinner each night, it's time to quit. Instead, think about what you want to eat for the next few days, and buy groceries all at once. You'll save money, time and gas.

• Use a shopping list. A full two-thirds of purchases at grocery stores are impulse buys, according to Paco Underhill, the CEO and founder of Envirosell, a market research and consulting company. To reduce that temptation, make a shopping list and stick to it.

• Pay with cash. You'll be more likely to stick to your shopping list.

• Stick to the perimeters of the supermarket. That's where you'll find all the unprocessed basics you need -- dairy products, meats, bread -- while avoiding inner aisles brimming with tempting processed foods that drain budgets.

• Buy in season. Craving strawberries in January? You'll pay top dollar. With that in mind, make it a habit to eat what is in season locally. Guard against cravings by canning or freezing fresh items so you can enjoy those berries anytime of year.

• Cook cheaper meals. Instead of serving huge portions of meat, use it to supplement larger portions of rice or pasta in affordable casseroles. For other low-cost ideas, check out the Department of Agriculture's "Recipes and Tips for Healthy, Thrifty Meals."

For additional ideas, see "Can a family eat on $100 a week?" and "Secrets of superstar grocery shoppers."

Continued: Banking and credit savings

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