Slash Your Bills-- 6 Ways to Keep More Cash
Like a lot of hardworking couples, Ilah and Dennis Hardesty of Long Beach, California, live paycheck to paycheck．Their ＄1,200 monthly rent eats up about half of Dennis's take-home pay as a manager for a racing car engine manufacturer．Private school tuition for their three s takes another＄400 bite．Income from Ilah's two part-time jobs-- as a fitness trainer and school secretary-- disappears at the gas station and the grocery store.
The bottom line? Even with no car payments and just ＄ 300 in credit card debt, the family barely gets by．'We don't have a penny in savings', says Ilah．'No, I actually do have one cent in my ac-count'.
With inflation outpacing wage growth in recent years, it's not hard to find families like the Hardestys running out of money before they run out of month．According to the nonpartisan (无党派的) Economic Policy Institute, which studies lower-and middle-class economic trends, the median hourly wage of an American worker after inflation is less today than in 2003．The result is less buying power after the bills are paid.
These days, inflation is hovering around three percent, so anyone who remembers the double-digit price spikes of the 1970s might wonder what all the fuss is about．But even moderate inflation rakes its toll, says personal finance expert Jonathan Pond, author of You Can Do It! The Boomer's Guide to a Great Retirement．In fact, annual inflation of just three percent doubles the cost of living every 23 or 24 years．Meanwhile, some essential expenses-- energy, health care, higher education-- are far outpacing the inflation index．No wonder families are feeling pinched.
Pinched doesn't have to mean powerless, though．Here, then, are six ways to save money on the big bills.
Education Options
Here's a pop quiz: Who's turned out more current CEOs of S&P 500 corporations-- Harvard or the University of Wisconsin? Pencils up: They're running neck and neck, according to a recent study by Spencer Stuart, an executive recruiting firm．The study reinforces what should be common sense: There's no direct correlation between where a child goes to undergraduate school and later success．In fact, the pricey Ivies trained only ten percent of those CEOs.
So if your family's budget favors State College over Snooty U., don't sweat it．Kids who are motivated will succeed, no matter the color of their cap and gown．Look for quality institutions in your area．Consider a local four-year college and save on room and board.
Or opt for a community college the first two years (tuition is bargain-basement), then finish up at a state school or private university．Don't forget: Once your child moves on to, say, Tufts, he will get a Tufts diploma.
Financial planners also suggest that parents give priority to their own retirement savings over college funds, since there are no loans, grants or scholarships for surviving your senior years.
Taking Care of Health Care
Like education, health care costs have been outpacing inflation, which is one reason why employers are shifting more of the insurance burden to individuals．To control the expense, many people are opting for higher deductibles and lower monthly premiums．What's more, says Pond, 'four-fifths of Americans enjoy pretty darn (非常) good health and could be safe choosing a policy with fewer bells and whistles．If no one in your family uses expensive pharmaceuticals, why pay for a high-priced drug benefit?'
But what happens if you suddenly need a costly long-term drug? Many policies allow you to upgrade to a plan with better benefits, after a six-month waiting period．You might also check out Wal-Mart．The company recently started a program in 27 states to fill 30-day generic prescriptions for just＄4 each．Nearly 300 drugs are covered．Among them are c