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.

Insurance

51. Consider consolidation. Some insurance companies offer substantial discounts for insuring both your home and car. See if yours is one.

52. Raise your deductibles. The easiest and fastest way to lower insurance bills is to raise deductibles. Going from a $250 to a $1,000 deductible can reduce your home or car coverage cost by 20%, and only takes about three minutes.

53. Don't buy credit life. These are gimmick policies that are basically life insurance that's tied to specific debts, like a credit card or mortgage. Regular term life insurance is a much less expensive alternative.

54. Don't buy whole life insurance. Whole life, or permanent life insurance, combines a life insurance policy with an investment account. Unless you're rich and need a permanent policy to help pay estate taxes, it's generally a better idea to buy cheaper term coverage and do your own investing separately.

55. Don't insure your child's life. The purpose of life insurance is to replace the earnings of a key breadwinner in the event of untimely death. While the death of a child is certainly a tragedy, it's rarely a financial calamity. There are better investments you can make for a child.

56. Shop your coverage. Whatever type of insurance you have, you should shop it every six months. This is a competitive business, and getting more so all the time. So pull out those policies and make sure you're getting the best deal!

57. Cancel your car coverage! This may seem like a strange idea, but if the cost of your annual comprehensive/collision coverage is more than 10% of the value of your car, you could consider dropping it. (Obviously you should never under any circumstances drive without liability!) For example, if you're paying $500 in comp/collision premiums to cover a car that's only worth $5,000, you're at the 10% threshold. If the potential loss of $5,000 worth of car is worth not spending $500 every year, consider dropping the coverage. This is only an option if you don't have a loan on the car, since lenders require you to maintain full coverage to protect their collateral.

58. Flaunt your good driving record. If you've had no accidents or tickets during the last three years, make sure your rates reflect that. Most insurance companies don't automatically lower your premiums when old citations fall away. You have to call and make them reduce your bill.

59. Get what's coming to you! Keep the following list of possible discounts available and ask for them all when you get car insurance quotes (many might be applicable to homeowners as well.) Accident-free, multiple cars, short mileage (usually less than 7,500 miles per year) good student, absent student (if your kid is away at school without their car, they might reduce your family rate), over 50, graduate of defensive driving course, nonsmoker, airbags, antilock brakes, automatic seatbelts and anti-theft devices. Any of these possible discounts could save you money. And when you're done reciting them to the insurance company, be sure and ask, "Did I leave anything out? Do you have any other ways for me to save money?"

60. If you're changing policies, make sure your new one is in effect before you drop your old one. This applies to every kind of coverage: health, life, homeowners and automotive.

61. Get rid of PMI ASAP. Private mortgage insurance (PMI) is normally required if you have less than 20% equity in your home. And it can easily cost $50 a month! As soon as you're sure you've got the magic 20%, whether it's by appreciation or paying off mortgage principal, call your lender and tell them you want out of PMI. Expect them to make you jump through hoops since they make tons of money from this coverage.

62. If you're going to buy travel insurance, make sure you only get coverages you need, like trip cancellation coverage. Policies insuring your luggage are normally so riddled with exceptions that they're virtually useless.

63. Don't buy specialty insurance, like cancer coverage. Put your money into a good general health insurance policy instead.

64. Keep health insurers honest. If you're like most people, you pay no attention to your health coverage. So when your insurer messes up, which they frequently do, you don't know it. For example, many policies have a deductible of $200 per person, $400 per family. But are you keeping track of when you reach those magic numbers? Don't assume your insurance company is. Read and understand your policies and keep your own tally: you may need it for tax purposes anyway.

65. Don't let your doctor cost you money. If your health insurance provider agrees to pay 80% of covered procedures, that generally means they'll pay 80% of what they think is reasonable for that procedure, not 80% of whatever it costs. So find out what your insurance company is willing to pay and if your doctor can do it for that amount.

66. HMOs are normally the cheapest way to get health coverage. In the world of health, choosing your own doctors is an expensive alternative.

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.