Save $1000 the Easy Way

Take a good hard look at how much you’re paying for less obvious but much more expensive money wasters like overdraft fees and auto insurance. Obviously, cutting out Starbucks, delivery pizza or movie rentals could just pile on the savings, but we figured you already know that.

Of course, growing your own vegetable garden might take a little more than a few pages to help you with that. We will have plenty of articles on that, too, though.

Cutting back on these seven very popular items could save you $1,000 a year.

1) Bottled Water

Getting your recommended eight glasses of water a day by bottle instead of the tap is a huge waste of cash. That buck-a-bottle water you down on a regular basis can really add up.

Your total annual savings: $300.

2) Extended Warranties

Think twice before you shell out $10 a month for a two-year protection plan on your pricey new PDA. New products tend to either fail within the manufacturers’ initial warranty periods, or beyond when any extended warranty has expired. Most extended warranties exclude accidental damage, too, so you’d still be out of luck if you drop your phone and crack the screen.

Just be careful, not careless.

If you want the warranties, do it the right way. Pay with the right credit card. Many credit cards — including most American Express and MasterCard cards — double the manufacturer’s warranty on purchases, adding up to another year of free protection.

Someone buying a 40-inch Samsung flat panel high-def television at Best Buy for $800 has the option to add a four-year protection plan for another $150. Skip it, and pocket the cash instead. (The set already has a one-year manufacturer’s warranty.)

Your total annual savings: $120

3) Gym Memberships

The cost of a gym membership can really rack up over the course of a year (an average of $775, according to the International Health, Racquet & Sportsclub Association). So make sure you’re tapping into all of the discounts available to you. Check with your employer, health insurer and other membership groups like your union or alma mater to see if they offer discounts on gym and fitness club memberships.

On your own, you’d pay $54.99 per month, plus a $49 enrollment fee, for a national access plan at Bally’s Total Fitness. Through discounter GlobalFit.com, which offers special rates for members of partner companies, you’d pay $37.80 per month plus a $29 enrollment fee for the same Bally’s membership.

Your total annual savings: $225

4) Overdraft Fees

Overdraft fees can run as high as $35 apiece and banks have a host of sneaky tricks that can cause even the most diligent consumer to overdraw on an account. For example, they may approve debit purchases that would put you in the red, or re-order transactions so that the biggest purchases go through first — and deposits get processed last. To protect yourself, sign up for overdraft protection, which can cost as little as $5 to $10 a year (and is often free with high-level checking accounts), and can save you hundreds of dollars.

Potential Savings: Pay $5 annually for a connected line of credit at Citibank. It kicks in only when you overspend, helping you to avoid the $30 fee per overdraft.

Your total annual savings: $115.

5) Organic Produce

Sure, buying organic makes you feel like you’re doing the right thing, but it isn’t always the best choice for your wallet. Fruits and vegetables like kiwis, sweet corn and broccoli require very little pesticide to grow. Others — like avocados, onions and pineapples — have thick or peelable skins that reduce your exposure to harmful chemicals. “Any pesticide that remains is not getting through,” says Lempert. For a handy reminder as you shop, download the Environmental Working Group’s wallet-sized organic produce guide.

Potential Savings: Organic broccoli costs $2.99 per pound at online grocer FreshDirect, which also offers conventional broccoli for $1.49. A pound of navel oranges is $4 for the organic and $2 for conventional.

Your total annual savings: $115

6) Auto Insurance

Auto insurers often give discounts for consumers who don’t drive long distances. If your driving habits have changed in recent months — say, you’ve switched jobs or cut out pricey trips to the mall – call your insurer to ask if you now qualify for a better rate.

A driver who cuts back to fewer than 7,500 miles a year could shave 5% to 15% off his premiums, depending on his insurer. The average driver pays $817 a year on auto insurance, according to the Insurance Information Institute.

Your total annual savings: $120.

7) Music Downloads

For the longest time, Apple iPod and iPhone owners were stuck downloading their music from iTunes, while consumers with other MP3 players couldn’t put the service’s content on their devices. But now, most online music purveyors (including Apple as of March) offer content in a DRM-free format — meaning you can listen to it on any MP3 player.

That frees iTunes users to pursue cheaper music from sites like Wal-Mart and Amazon.com. Music fans with other MP3 players may benefit from Apple going DRM-free, too. The company plans to revamp its fees in April, charging 69 cents to $1.29 per song instead of the current flat fee of 99 cents. Bottom line: Check prices on several sites before you download.

Your total annual savings: $25

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