Don’t work for a dead horse. Don’t change your car oil every 3,000 miles. Don’t book airfare on weekends.
That’s a sampling of the advice Spending Smart doled out in 2011, along with tips on buying bicycles, funeral services, energy-efficient light bulbs and soap on the Internet.
We even explored why your spending habits might depend on the first letter of your surname.
In abbreviated form, here is some of the top spending advice from 2011, based on reader feedback, uniqueness and our own favorites.
—Amish wisdom: Maybe surprisingly, a column about money mantras typical in Amish communities struck a chord with readers. Experts say the Amish, with their horse-drawn buggies and simple living, weathered the recession far better than most other Americans. “Don’t work for a dead horse” is one phrase you might hear among the Amish. The idea is you don’t want to purchase a horse on long-term credit because you could be working to pay it off long after the horse is dead. Another: “You don’t have to buy something new to buy something good.” A melodic quip you might hear is, “Use it up, wear it out, make do or do without.”
—Seeing the light: Two columns on the phaseout of 130-year-old incandescent light bulb technology drew the most response of the year from readers, some feeling like the government was literally casting them in bad light. A 2007 law requires that light bulbs have to be at least 25 percent more energy efficient starting in January, meaning traditional incandescent bulbs would be phased out. First to go in 2012 will be the 100-watt bulb. The most immediate and cost-effective replacements are compact fluorescent lamps, the swirl bulbs that last much longer than regular incandescent bulbs and use far less energy. But some consumers despise them for giving off what they say is an inferior light to incandescents, while others complain some CFLs don’t last long, especially in ceiling “can” light fixtures. CFL-haters can rejoice. Some energy-efficient incandescents that meet the new rules are for sale, along with new technologies, such as LED.
—Oil changes: In polite company you don’t talk about sex, religion, politics — or oil changes. Frequency of oil changes is a topic that breeds fierce opinions. Some swear by the 11th commandment: “Thou shalt change thy oil every 3,000 miles.” But nowadays, many experts say that’s a waste of money and that you need to change oil about every 7,500 miles. In fact, many newer cars will tell you, via indicator light, when they need their oil swapped.
—Auto repairs: Another car-related column was about repairs, one area where consumers feel especially vulnerable. And they should. The same repair can vary by hundreds of dollars. Cool new tools that can help you know what you should be paying for repairs include AutoMD.com, RepairPal.com and DriverSide.com. They offer general information on car repairs, including diagnosing your car’s problem before you take it to a shop, and estimates for what you should be paying.
—Alphabet effect: Turns out we were all emotionally scarred for life in elementary school as we repeatedly lined up alphabetically, researchers in behavioral economics say. The same students were always first and front or last and back. Then as adult consumers, those with names late in the alphabet, apparently traumatized with always waiting till last and choosing whatever is left over, compensate by jumping at buying opportunities and potentially overspending. On the flip side, those with names early in the alphabet are accustomed to getting what they want and buy slower, which can be bad for limited-time opportunities. The last-name effect is a continuum, researchers found. So those with last names in the middle of the alphabet make purchases with middling speed.
—Penny a day: Readers seemed fascinated with a question from a money quiz we devised: Would you rather have $1,000 or a penny doubled every day for a month? A grand is not chump change, but a penny doubled every day yields nearly $11 million if the month has 31 days. The idea is to show the power of compounding, which is why savings grow quickly over time. Alas, it’s an exaggerated example, with 100 percent return daily. Savings in today’s bank accounts don’t grow nearly as fast as a daily-doubled penny.
—Airfare: You’re most likely to get the best fares by booking midweek, specifically 3 p.m. Eastern time Tuesday to be optimal, according to FareCompare.com. Typically, one airline starts a sale on Monday night. Other airlines, being price copycats for competitive reasons, follow suit on Tuesday. The reservation system is updated by about 3 p.m. Tuesday, with the maximum number of cheap seats across the most number of airlines. Sales typically end by Thursday night.
—Online soap: We use soap as an example of the everyday items you can buy on the Internet instead of the local supermarket or drugstore. For household supplies such as shampoo, diapers, aspirin, trash bags, toothpaste and paper towels, try such sites as Alice.com, Soap.com, Drugstore.com and Amazon.com. Shopping online for these things won’t usually save money if you’re usually a ninja coupon shopper at the supermarket. But if your primary concern is convenience, shopping for household staples from your computer and having those items delivered to your door can be a great idea.
—Bike shopping: Bicycles can be cheap or expensive. But this is one area where you usually get what you pay for. Most important is not what you buy but where you buy it, experts say. Start out researching bikes on the computer for such bikes as Trek, Specialized, Giant, Cannondale, Fuji, Raleigh and Performance. Then visit a local bike shop, not a large sporting goods store or toy store, to get individualized advice.
—Senior phones: If response to our column on senior cellphones is any indication, seniors are craving some simplicity in wireless phones and service. Fortunately, senior-friendly phones come with lower prices and more variety. The basic advice is to use a prepaid phone if you won’t use many minutes, go easy on phone features and shop around. Examples of phones for seniors are the Jitterbug by GreatCall, the Doro PhoneEasy by Consumer Cellular and Senior Value Cell Phone by Tracfone.
—Don’t spill the coffee: To save money on gasoline, avoid aggressive driving. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town. Not sure what less-aggressive driving is? Imagine a lidless cup of coffee in your car’s cup holder. Drive like you don’t want to spill it. That means gradual acceleration and gentle braking.
HELPFUL WEBSITES 2011:
Here’s a sampling of helpful websites mentioned in Spending Smart during 2011.
—Automotive: Edmunds.com, KBB.com, NADAguides.com, Cars.com, Autotrader.com
—Complaining: Complaints.com, my3cents.com, ComplaintsBoard.com, ConsumerAffairs.com, RipoffReport.com, MeasuredUp.com
—Consumer advocate: ClarkHoward.com
—Coupons: SavingsAngel.com, CouponMom.com, TheGroceryGame.com
—Credit: AnnualCreditReport.com, myFICO.com
—Credit cards: LowCards.com, CardRatings.com, NerdWallet.com, Billshrink.com
—Deals: DealNews.com, BradsDeals.com, Savings.com
—Electronics resale: Gazelle.com, eBay.com, Craigslist.com
—Personal-finance organization: Mint.com, Smartypig.com
—Funerals: Funerals.org, www.tinyurl.com/funeralrule
—Gasoline: GasBuddy.com, GasPriceWatch.com, http://gasprices.mapquest.com
—Gift card swap: GiftCardGranny.com, PlasticJungle.com, Cardpool.com, GiftCards.com
—Loyalty cards: KeyRingThing.com, myCardStar.com
—Product reviews: ConsumerSearch.com
—Privacy: PrivacyRights.org, IDTheftCenter.org
—Phone alternatives: Ooma.com, Vonage.com, BroadVoice.com, magicJack.com, Skype.com, google.com/voice
—Service reviews: Checkbook.org, AngiesList.com, Yelp.com, Kudzu.com
—Travel: Kayak.com, Expedia.com, Orbitz.com, Hipmunk.com, Travelocity.com, FareCompare.com, Yapta.com, Bing.com/travel, TripAdvisor.com
