Feb 20, 2009 10:00 am US/Eastern
Learn To Cut Costs On Car Repairs, Utility Bills
NEW YORK (CBS) ―
These days almost everyone is looking to trim the family budget. Certain cuts that can save you a few dollars today, could cost you thousands of dollars later, reports CBS station WCBS-TV.
To save $30 today, change your oil at 6,000 miles instead of every 3,000.
"The more you put it off, the more you risk that small change turning into a bigger problem," said Kelli Grant of Smart Money magazine.
But keep in mind that $30 savings could end up costing you $5,000 for a new engine down the road. Old oil can damage your car. and that's not all experts warn that you should reconsider when deciding what to cut back on.
"If you don't get your Starbucks coffee in the morning and you're cranky that's not a life threatening problem, but if you're talking about something where you don't have home insurance, that's going to have major repercussions," Grant said.
In fact, Grant said there are five key categories consumers can save on but should never completely cut: car repairs, prescription drugs, utilities, auto and home insurance.
"One thing you can do is raise your deductible from $250 to $1,000," Grant said.
That will decrease your insurance premiums by about 50 percent, Grant added.
If you've recently been laid off and lost your health insurance, prescriptions can be costly. But, Grant said, buying generic can save you more than 50 percent.
"Especially at retailers like Wal-Mart and Target where they will offer a supply of generic drugs for about $4," Grant said.
As for your utilities, Grant said there are a number of ways to conserve without letting the lights go out.
"Talk to your utility company about payment plans and discounts," she said.
Insurers also give discounts depending on where you live and work. Stay-at-home moms and retirees, for example, can get a better rate on home insurance because they can contain a problem -- like a burst pipe -- before more damage is done.
You can also find great deals on prescription medications at warehouse stores and many don't charge membership fees just to visit their pharmacies.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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