MONEY TALKS

Keeping more of the money that comes into your life is a lot more than just reading hundreds of useful savings tidbits. Each savings idea is like a little recipe to create money, but in order to follow a recipe, it helps to know how to cook first. So let's start by learning some savings fundamentals.

Savings fundamental number one: The best way to save money is not to spend it. And the best way not to spend money is to not buy things you don't want or need. That sounds stupid, but work with me here. Because many, if not most of the things you spend money on now probably fall into that category. We live in a world where our "needs" are largely the figment of someone else's imagination, and that someone else lives in executive suites and on Madison Avenue. In other words, what you think of as your reality may not be so real! There are fundamental physical truths, like gravity, that we know are real because we've experienced them. But we were all raised in a false societal reality created for other people's profit that has nothing to do with what's real. It's imaginary, and it's probably in direct conflict to a different, better reality that you can create by simply deciding what makes you happy and fulfilled.

Telephone Savings

121. Use the Internet! Email is free. Long distance calling isn't (unless you also do that on the Internet!) The Internet is also a great free way to find numbers instead of using directory assistance. But if you are going to use directory assistance, your local one (411) is almost always cheaper than the national ones you see advertised on TV.

122. Stop leasing. You'll usually save money by buying your own phones.

123. Hang up on frills. The phone company is a master at getting us to buy services. They sell your phone number to telemarketers, then sell you caller-ID to thwart them. In round two, they sell services that block caller-ID to telemarketers, then sell you a gadget that won't allow blocked calls to ring through. Don't play this ongoing game. Get the basic package, skip the frills and save yourself $100 or more per year.

124. Turn the tables on telemarketers. One of the most popular TV news stories I've ever done involves changing from victim to predator in the cold-calling jungle. Here's how it works. Federal law requires that almost anyone who solicits you by phone give you their name and either address or phone number (which they virtually never do.) The law also requires that they call between the hours of 8 am and 9 PM. And if you ask to be put on their "do-not-call" list, nobody from that company is allowed to call you for ten years. Finally, they're required to furnish you with their written "do-not-call" policy upon request. Now, here's the cool part. Companies are allowed one mistake per year, then they are subject to a $500 fine per violation. So here's what you do: keep a pad and pencil by the phone. When you're cold-called, ask to be put on the "do-not-call" list, and ask for a copy of their written policy. Make a note of the date, time and person you talked to. If that company contacts you again, let them know you're supposed to be on their "do-not-call" list. That was their one allowable mistake. If they call you again, get their address, because you're about to make some money. Send a letter to the company threatening to sue them in your local small claims court for $500 per offense because the company is in violation of the Telephone Consumer Protection Act. More than likely the company will offer you a check ($250 to $300) to avoid the hassle of a court hearing that they're going to lose. Believe it or not, informed Americans have already collected hundreds of thousands of dollars with this strategy (and no doubt had fun doing it!) That's just the gist of what you need to know, however: to learn more, go to Junkbusters. Sites like this can also help you reduce your junk mail.

125. Shop your long distance. Internet sites like TRAC and A Bell Tolls can help you find the best long distance calling plan for your needs. If you don't have Internet access, go to the library. Remember: part of your monthly phone bill goes to pay for library Internet access, so use it! Even if you aren't willing to go to the hassle of finding the best long distance deals, at least call your current long distance provider and make sure you're on the cheapest plan for your needs. Before you start shopping long distance, be sure and look at a few bills to see what your calling patterns are. Do you make most of your calls to one person? Mostly night and weekends? How long are your average calls? How much do you typically spend? This type of information is important to know before you can find the best overall plan for your family. And, just as with other services, don't be afraid to ask for a discount. The way to do it is simply to say you've found a better deal elsewhere and ask your current company to match the rates. Don't lie, however: they're likely to verify the information.

126. Know the lingo. It's hard to shop smart for something when you don't know what questions to ask. In long-distance land, there are three major ones. First, "What is your cost per minute?" Second, "What is your billing increment?" Billing increment is crucial if you make lots of calls, and especially lots of short calls. Billing increments for the "big three," AT&T, Sprint and MCI/WorldCom, are typically one minute. That means if you talk for one minute and one second, you get charged for two minutes. Other companies may have billing increments of only six seconds, which is obviously a better deal. Third question: "What fees will I pay?" Many of the larger companies charge a fixed monthly fee in addition to their rate-per-minute. Depending on what you're spending, this seemingly small fee could radically change your cost-per-minute.

127. Don't take their word for it. We tend to regard anything printed out by a computer as accurate, which is often far from the case. Look at your bills and make sure you're actually paying the per-minute rate you were promised. Mistakes abound, and by some odd coincidence, they almost always seem to favor the company!

128. Don't forget calling cards! If you travel, calling cards are important because they allow you to get the same rates from the road that you're used to paying at home, at least theoretically. But the big three long distance carriers often have ridiculously high rates and fees for their cards. Before you enroll in any plan, be sure to ask about calling card rates. If the plan is otherwise perfect but the calling card rates seem too high, you can always buy low-cost pre-paid cards with rates as low as five cents a minute.

129. Save on cellular. Cellular phones are convenient, but they can really fracture family finances. If you keep one for emergencies, consider a much less expensive pager instead. If you really need cellular, understand what you need it for before you buy it. For example, why pay for an unlimited national calling plan if you rarely leave your state? If you don't use all the minutes that come with your monthly plan, the cost of the minutes you do use skyrockets. So think about your needs before you sign a contract. And speaking of contracts, nowadays there are many plans that don't require one. With rates and plans changing often, you're a lot better off not being locked in.

130. Free cellular phones aren't free. Normally you're better off getting a cheaper plan and buying your own cellular phone. Plans that include "free" phones often also come with long contracts and higher monthly costs.

Keep in mind: the key to saving money is to do things that are painless for you. Otherwise, you'll never be able to stick with it. And what's painless for you might be ridiculously hard for me, and vice-versa. We've all got things that we are willing to trade our money (and therefore our lives) for. The trick is to find the ones that are really yours instead of blindly following the fake reality created for you by Madison Avenue. Reshape your reality by rediscovering what's important to you and choosing to part with your resources to experience it. Then ignore the ever-present background noise designed to keep you enslaved to debt.

Find more money advice at www.MoneyTalks.org.