20 ways to save money without feeling like you’re skimping

For several years, American consumers’ finances have been squeezed by surging housing prices and rents; climbing grocery bills; and costs for insurance, utilities, and childcare that have increased faster than wages. Ready to make some changes and start saving? Here are 20 ways to do it.

1. Buy less stuff. The dopamine hit from a new purchase is real but short-lived and leaves many in long-term debt. Before buying something, ask yourself (or family): “Do I actually need this?” Waiting a day or two often provides clarity.

2. Shop around for the best price. Over the last 50 years, Consumers’ Checkbook’s researchers have collected more than a million prices from service providers and retailers. We find enormous differences in costs for the exact same work or product.

3. Buy used or get it for free. For furniture, kids’ gear, tools, bikes, sports equipment, books, and clothing, used is usually good enough and often costs far less. Don’t overlook gifting networks like the Buy Nothing Project and Freecycle.org.

4. Avoid purchases that sound sensible but aren’t, including extended warranties for appliances and electronics, air-duct cleaning, home warranties, credit-monitoring services, and vehicle-service contracts. Checkbook’s research has identified dozens of products, services, and add-ons widely marketed as smart buys that are almost always bad deals.

5. Don’t upgrade your phone until you must. Skipping even one upgrade cycle saves you hundreds and lets you avoid trading in a perfectly good device at a fraction of its value.

6. Keep your car longer. The average new car now sells for more than $50,000. Every year you drive a paid-off car is thousands of dollars saved on interest payments, depreciation, and insurance.

7. Try to pay bills on time, stay out of high-interest debt, and seek help if you need it. A growing number of Americans are finding it difficult to pay their bills. Nearly half of all credit card holders carry balances from month to month, with many paying more than 25% interest. Digging out from credit card debt might seem impossible, but with hard work, discipline, and guidance from a certified credit counselor, it can be done. To get help, visit NFCC.org or call 800-388-2227.

8. If you carry credit card balances, the card you use matters a lot. Rewards cards typically carry APRs of 25% to 30%. If you’re not paying your balance in full every month, the interest charges will be far more expensive than the value of any points you earn. If you have high-interest credit card debt, consider applying for a personal loan from a bank or credit union to decrease your interest rate and payoff time.

9. Shop around every year or two for car and home insurance. Our research shows that most policyholders can save more than $500 a year by switching to a lower-priced auto and/or home insurance company. Some will save $1,000 or more.

10. Choose your health insurance plan carefully each year. Most people stick with the same plan year after year. That can be costly. During your next open-enrollment period, do an audit of your needs and your choices. The goal is to match what you’re paying for with what you use. The savings can be significant.

11. Maximize your employer benefits. FSAs, HSAs, 401(k) matching, free counseling through EAPs, tuition reimbursement, legal plans … most employees leave lots of money on the table every year by not paying close attention during open enrollment.

12. Shop around for prescription drugs. Drug prices vary wildly among pharmacies. Paying out of pocket with a discount service like GoodRx or Cost Plus Drugs can be significantly cheaper than your insurance co-pay. Also, always ask your doctor whether generic is an option.

13. Take care of your health. The best way to reduce healthcare costs? Take preventive measures: Annual physicals, well visits, mammograms, flu shots, colonoscopies. Most health insurance plans minimize out-of-pocket costs for these types of services.

14. Switch to a lower-cost grocery store. Most shoppers can save by taking advantage of low-cost supermarket options. For a family that spends $300 per week at the supermarket, a 15% price difference totals savings of $2,340 per year.

15. Cook more; break up with delivery services. Making your own meals a few more times per week can save a typical household $150 to $200 a month compared with restaurant costs. When you get takeout, pick up your own food; delivery apps are brutally expensive.

16. Get multiple bids on home repairs and improvements. Checkbook’s research shows the price you pay has almost nothing to do with the quality of work. For any significant job, get at least three to five fixed-price bids, and be especially wary of companies that pressure you to sign the same day.

17. Audit your subscriptions. The average American now spends more than $1,000 a year on subscriptions. Most households pay for several things they’ve forgotten about. Set aside 30 minutes, go through your credit card and bank statements, and ax anything you haven’t actively used in the past month.

18. Use your library. Get books and audiobooks through the Libby app, stream movies through Kanopy, access paywalled websites, and more.

19. Take advantage of free government and nonprofit resources. Many local governments offer programs residents don’t know about: Recreation centers, youth sports leagues, and in some areas, subsidized broadband.

20. Don’t get scammed. U.S. consumers lose tens of billions each year to criminal rings running sophisticated scams. Never send money via wire transfer or gift cards in response to an urgent request. Never give remote access to your computer or phone. Verify any urgent financial request — even one that appears to come from a family member — by calling them back on a number you already have. Monitor your credit reports for free at AnnualCreditReport.com and place a free security freeze on your accounts with Equifax, Experian, and TransUnion to prevent new accounts from being opened in your name.

Delaware Valley Consumers’ Checkbook magazine and Checkbook.org is a nonprofit organization with a mission to help consumers get the best service and lowest prices. It is supported by consumers and takes no money from the service providers it evaluates. Until Oct. 5, readers can access Checkbook’s money-saving ratings and advice free at Checkbook.org/Inquirer/save.