7 painless moves to save $1,000

4. Check out materials from the library

The next time you plan to buy or rent a movie, head over to your local library instead and borrow the video for free. Many libraries stock DVDs -- movie classics and newer titles -- and compact discs with generous borrowing periods. If you need children's videos, visit the juvenile area for new cartoons and educational selections.

While you are at the library, see if they have the latest book releases. Many libraries post best-seller lists, and they probably have several copies of many titles. Remember to return everything on time; libraries charge late fees just like rental stores do.

If you want reading material but you don't want to leave home, call your local library and ask if they offer e-books that can be downloaded to your computer.

If you borrowed just two books or movies a month that you would otherwise buy or rent, you could save $120 to $240 per year.

5. Bundle cable, phone and Internet services

If you can't live without your cable, telephone and Internet access but the monthly bills are getting uncomfortably high, consider bundling all of your services under one company.

"With the competition for cable and Internet being so high, there's a good chance that you can negotiate a promotional rate," Mehdikarimi says.

Just be aware that unexpected fees could be added to that low quoted rate.

"Because of taxes and other state-imposed fees, the overall savings for a bundle might not be as great as you may have been led to believe," says Mruz. However, your bill could still be much less than if you paid for the services separately.

Even if you don't opt for a bundled package, ask your providers for a price break.

"If your rates are too high, call some other companies to find their rates. Then call your current provider and ask them to match the price," Mehdikarimi says. "My philosophy is that it never hurts to ask."

If you were able to reduce your total fees by $20 a month, that would add up to $240 for the year.

6. Negotiate with monthly service providers

Once you get off the phone with your cable, Internet and telephone provider, call your alarm company, lawn-care person and any of your other monthly service providers to negotiate prices. Depending on where you live, you might even be able to negotiate natural-gas rates.

"Obviously, you're not going to get very far with monopoly utilities, but for the companies that have competition, you can definitely negotiate your price," says Mehdikarimi.

• Readers talk: Our best tips for frugal living

In each case, find what out what the competitors are charging. Then ask your provider to match the price.

Don't get discouraged if the first person you speak with can't approve a rate decrease. "You might need to ask for a supervisor," Mehdikarimi says.

One tip is to call during normal business hours to increase the chances of reaching a supervisor who can authorize a rate change.

If the idea of negotiating for a better price sounds intimidating, remember that the conversation can be pleasant, even if you have to ask the customer-service representative to put the boss on the phone.

"The call doesn't have to be confrontational," says Mehdikarimi. "Remember that you'll be in a telephone situation where you're not looking at someone face to face. Tell yourself that they're a random person, and after this call, you'll never have to see them again."

If you saved just $10 a month negotiating all your monthly services, you'd save an extra $120 a year.

7. Stash money for easier savings next year

By making these barely noticeable changes to your lifestyle, you could save as much as $1,000 over the next year. But how could you increase your savings in future years?

Bill Billimoria, a personal-finance expert and the author of "On Golden Pond . . . Or Up the Creek?" suggests letting your cash work for you.

"Take the money you saved so far and put it into a high-interest savings account or mutual fund," he says. "Then let compounding interest do the magic."

If you place $1,000 in an account that pays a 7% annual return on investment, the original amount will nearly double after 10 years. That means twice the money for no extra work.

Saving money by doing "nothing" can be a very lucrative habit.

Adding up the savings
Type	How often?	Savings each time	Yearly savings
Dinner discounts	Twice monthly	$5	$120
Returning unused items	Varies	Varies	Varies ($90 in this example)
Finding grocery deals	Weekly	$4	$208
Checking out library materials	Monthly	$20	$240
Bundling utilities	Monthly	$20	$240
Negotiating savings on services	Monthly	$10	$120
			Total: $1,018

This article was reported and written by Margarette Burnette for Bankrate.com.

Published Feb. 12, 2008

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