Top 20 Personal Expenses You Can Cut This Year to Save $1,000

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-- HEY, Eva!! What are the 20 expenses to cut & save $$? Spencer & I want to know. Here are some of my tips to save $$: 1) clothesline; 2) brown bag lunches; 3) white vinegar, baking soda, & lemons to clean; 4) if you have to drive park in central location so you can do errands on foot; 5) mow lawn less often; 6) sow lettuce & spinach seeds in flower pots for winter salads; 7) borrow DVDs, CDs, magazines, & books from library; 8) ca$h in redeemables for nickels; 9) wear clothes twice before washing; 10) compost; 11) make draft dodgers for windows & doors with old tube socks or wool socks; 12) clip crossword puzzles in newspapers for rainy days; 13) remove snow in driveway with shovel; 14) cover empty cans with fabric, map, music, etc. to make a desk set 15) buy gently worn clothing; 16) bake more than one item at a time (bread & potatoes, for example); 17) brew sun tea; 18) handmade gifts; 19) public transportation; & 20) use bank & store cards which allow you to acquire pts. for gifts. How do YOU $ave $$? --

1. Buy a level term life insurance OUTSIDE of your company group plan, and cash out the worst financial product on this earth - whole life or universal life insurance policies. 20 year Level term life insurance is getting cheaper each year. This will protect your family even when you're laid off. Level term life policy costs about 80 to 90 percent less than whole life. Invest those extra dollars into emergency fund, pay down debts, or build up college/retirement fund.

2. Promise yourself to save up to buy. Don't buy a new car that depreciates in value like a rock. Even worse, don't finance that depreciating thing. A $30K car with no money down will require you to pay over $5,000 in interest (money down the drain) in the first 4 years at 6% annual interest. This is double stupid. Guess what happens when you get into an accident, and need to pay that deductible. Triple stupid. What if you're upside down because you have a gas guzzling SUV or a truck? Quadruple stupid! Save up and buy a 3 or 4 year old reliable and economical used vehicle at half of the new car price. Saving up $300 a month will get you a nice paid for 2009 used car for about $14,000 four years from now.

3. If you are receiving large income tax refund, don't let Uncle Sam keep thousands of your hard earned dollars at zero interest. Increase your W-4 allowance number by 1 or 2 (or more), and invest that extra money in your paycheck or build up your emergency fund

4. Cut up credit cards and use debit cards. They both have same protection and safeguards. Several surveys show that between credit card and cash, people tend to spend 12% to 18% more with credit cards. And you can't borrow on a debit card. Card rates are going up to as much as 29% or 33% for some consumers with no warning. This is a loan shark rate. Also avoid payday loans at any cost because they charge 400% per year and more.

5. One of the most egregious and shameful inaction that many spouses commit is not completing their estate planning. Each person older than 18 should have a will, durable power of attorney, and living will for each. One can buy cheap software for about $30. You can print documents up for many people. Do this, and you'll avoid costly and legal snake bites which will take away 1/3 of what you could have gotten. Make sure that your beneficiary is not your ex-spouse, but your current mate.

6. Avoid on-line scams, frauds, and Ponzi schemes you are bombarded with every day. Stay out of payday loan places. Don't invest in any product/ service that is complicated and time-consuming. KISS principle is my theme. Don't buy anything until YOU can explain it to a 4th grader. It will reduce medical cost, stress, and future complications like divorce due to money problems.