Beyond the basics: Dig deeper to save money

Chances are you've heard the classic money-saving tips – things like brewing your own coffee, buying paper towels in bulk, and brown-bagging it – and are already employing them. These challenging economic times call for even more stringent purse-tightening, however; here are some ideas that you may not yet know about....

Investing and Finances

If you don't already contribute to your company's 401k plan, start now. Not only will this enable you to save more, but you may even be able to get an additional return on your investment, as most companies match your contributions. If your company has a 50-cents-per-dollar match, and you earmark $100 each month toward the 401k account, you'll be getting an extra $600 a year. That's a substantial amount.

All parents are concerned about saving for college – especially with average tuition costs topping $25,000 for a four-year private college education. A college savings plan called a 529 plan (named after its IRS tax code) is a tax-free way to invest in your child's future. Several states also give their residents a tax deduction or credit if they invest in the state's own 529 program. Moreover, the beneficiary of the savings plan does not automatically gain control of the funds upon maturation; in other words, you retain parental control. Anyone can contribute to the account, and you can open an account for anyone, not just a child or other relative. There are no income-related eligibility restrictions to 529 accounts, and you can contribute as little as $25 to $50 per month if finances dictate.

You may be already paying bills online to avoid late fees, surcharges and the hassle of writing out checks the old-fashioned way. Why not look into an interest-bearing online checking account, too? Many reputable firms, such as ING and Charles Schwab, offer interest rates on such accounts between 2.25% and 3.35%. Let your money make money.

Food and Entertainment

According to the U.S. Department of Labor, the average American family of four spends $709 on groceries each month. Although clipping coupons can chip away at that total, it can be time-consuming and tedious. Instead, be a savvy shopper: leave the kids at home, take a list and stick to it, and shop only once a week or less. Almost half of all shoppers stop at the store three or four times a week, usually purchasing over 50% more than they planned, according to a study by the Marketing Science Institute.

Everyone knows that restaurant meals or take-out carry a high markup. But so can store-bought “convenience foods.” The more processed your food, the more costly it is. Instead, start switching to a whole-foods diet. One way to do this is by joining a Community Supported Agriculture (CSA) program. In return for a yearly investment, and sometimes a few farm-work shifts, you'll receive a box of fresh, often organic vegetables, meats or other foods each week. To find a CSA near you, check out  www.localharvest.org. You can also save and support local farmers by visiting one of the many regional markets that are cropping up in towns and city neighborhoods across the country.

More than likely you've heard of discount movie services like Netflix, and Redbox, the DVD kiosks that allow you rent videos for just $1 a night.  But the truly frugal seek out free movies from their local library, or tune into websites like hulu.com, an online library of thousands of television shows, including classics and current favorites.   Another portal, joost.com, allows users to join networks of friends and receive recommendations.  One of these options, coupled with a discontinuation of your cable service, could offer substantial savings.

If canceling cable is out of the question, check to see if you can bundle together high-speed internet service, phone service, and cable or satellite. Many companies offer savings if you purchase all three; bundled service may cost as little as $90 a month and can save you hundreds of dollars a year. Or look into a web-based phone provider, such as Skype or Ooma, and eliminate your land line altogether.

Lastly, if you want a bargain, ask for it. Haggling isn't just for yard sales anymore. If you are in the market for something, whether it's a new winter coat, a discounted hotel room or a lower credit card rate, speak to a manager or supervisor and ask if they can give you a deal. Pointing out a competitor's lower price may help your case, as can paying for an item with cash. The LA Times reports that some chain stores, especially in the electronics field, have given floor employees the ability to grant discounts. It never hurts to try, and you may be pleasantly surprised at the deal you receive.