Clarksville, TN - Grace Community Church

After listening to Joel Sangl and company at recent events I was energized once again to try to cut cost out of everyday life.  We started out looking at grocery expenses and looking at trying to consolidate all the trips we were making into two larger trips each month with a plan.  The planned trips required a little thought but after a few trips to a local warehouse club we determined the mix of products that would allow us to go two-three weeks.   These efforts take a little effort but have significantly reduced the monthly outlay for groceries and sundry items.  Joe suggests that a family of four should be able to eat on $100-125 month each per month.    If you are doing significantly better than this my guess is you’re not eating at home much or maybe you have found a better way (Please share it with us.) 

Next we looked at a web site called www.retailmenot.com  .  This website proved very valuable at Christmas time as we found coupons that saved between 10-25% at some of our favorite online shopping stores.  The savings amounted to approximately $200 on top of buying many items on sale with free shipping.

Our latest but definitely not our last success has been in the home/auto insurance.  I know you may place some value on the relationship you have with your home/auto insurer or you may think you could not possibly get a better deal because two years ago you got 5 quotes and the one you choose was by far the best.    Both of these would describe me until just a few days ago, but I have established a few new rules for myself in obtaining insurance quotes. 

1.      Get a quote early and often.   On net quotes the process takes about 10-15 minutes per agent.  Two of the three were so high I immediately said no.  Interesting to note I quoted by some of the same insurance coming in the fall of 2009 and the results where complete different (that’s why I said often).  The insurance market is very competitive and your credit situation and the carriers criteria changes frequently.   

2.     Unfortunately, my insurance carrier is only as good as the last quote they gave me.  Local agents are just salesmen and only communicate with you to sell you something else.  If you have or are agent that doesn’t conform to this statement you know the value you have/provide and this statement doesn’t apply.

3.     When you consider a quote determine Who you want to cover you?  -- Do you only want a Top 5 or are you willing to go with little known carrier or a carrier known for minimum coverage. 

4.     When you consider a quote know basics of the coverage you have and does it meet your needs (enough coverage to replace house/liability coverage).   This information will be disclosed on your latest insurance bill.

5.     Consider sharing the risk with your insurance company in the form of a higher deductible or at least getting a quote for this option.

These are the rules I followed to determine whether I would keep my insurance carrier or hire a new one.  There are another set of rules that correspond to question #4 that you may need to determine how to educate yourself.   Each insurance carrier has their own beliefs on this subject.   when I recently visited www. netquote.com  and www.homequote.com recommended by Joel Sangl.    I put my information in and got insurance companies phoning me.  Three recognizable and reliable companies called-all companies that most people would recognize from commercials.    

One was able to beat my current rate by 20%, double my coverage on my auto policies and increase my liability to full coverage on one of my vehicles.   As noted I’m willing to share a little with my insurance company – this may not be idea for everyone and you need to set the amount aside somewhere if you choose to go this route (as I noted I got quotes for 3 different levels).  Also I did want to be with a national recognized full service company. 

(Note: These are the rules I followed to determine whether I would keep my insurance carrier or hire a new one.  Another set of rules apply to question #4 about the details of your coverage.  You may need to determine how to educate yourself to determine the right coverage for you.   Unfortunately, each insurance carrier has their own beliefs on this subject and why their opinion is correct. )  

As we continue on our frugal journey, I am sure there are many areas that need to be evaluated, but for us these minor adjustments have helped us manage our money better.  Please share your thoughts and ways you like to cut cost.