Bills might be a fact of life, but that doesn’t mean that high bills need to be a fact of life.  But sadly, most people are being robbed quietly each month by utility companies, insurance companies and other expenses that seem reasonable but aren’t.  Don’tallow yourself to be a passive bill payer – consider the five ways below in which you can save money each month, and take action to save big.  After all, a penny saved is a penny earned.

• Mortgage payments – Interest rates are at the lowest point they’ve been in ages, and there’s no reason why you shouldn’t take advantage of this opportunity to save money.  It may be a bit of a hassle to refinance your current mortgage, but you can end up saving thousands of dollars over the life of the loan.  Consider whether you’d want to reduce the term of the loan or to keep the same length of the loan but reduce the monthly payments, and speak with a financial advisor who can guide you on the best way to proceed.  If you’re a homeowner, a bit of legwork can really pay off big.
• Car insurance – If you’re like most people, you’ve chosen a car insurance company, signed the deal, and have been paying the same amount of money for months on end.  But if you’ve never filed a claim and you’ve had the car for more than two years, you should be entitled to a significant reduction.  For starters, your car has devalued somewhat in the past few years, and it’s now worth less, so you can insure it for less.  Secondly, you should receive a reward for safe behavior, and while your insurance company won’t be quick to offer this to you, they shouldn’t hesitate if you ask for it directly.
• Cell phone bills – Today’s cell phone companies offer a range of feature-filled plans that sound reasonably priced for the services that they’re offering.  But if you aren’t taking full advantages of the features being offered, you may be overpaying for your cell phone service.  If you pay for an SMS package, for example, but you don’t text more than a weekly vote for your American Idol favorite, you shouldn’t be paying for this service.  Likewise, if you have a high minute allotment but you aren’t using up all of your minuets, you should consider downgrading your plan to reduce your monthly cell phone bill.
• Health insurance – If you receive decent health insurance from your employer, consider yourself lucky, because more and more employers are offering meager packages – if they offer health insurance at all.  If you’re looking to save money, consider these tips:  If you’ve been recently laid off, COBRA may not necessarily be the best option for you.  Research your options online, and you may be surprised to find even cheaper options.  If you’re currently paying for your own health insurance, consider how your needs may have changed since you signed up for your policy.  As your children age, they tend to go to the doctor less frequently, so you may be able to save money by trading your current plan for health insurance with a higher deductible and a lower monthly fee.  Don’t hesitate to research new companies or to question your loyalty to your current company – most doctors offer multiple types of health insurance, and you should be able to find qualified physicians with any health insurance plan.
• Car expenses – Many consumers think that purchasing a cheap used car can save them from financing a newer car.  But the pitfalls of buying an older car are numerous, from higher maintenance fees to lower gas mileage per gallon.  Before you commit to purchasing an older car, consider the additional expenses that you’ll have to pay over time, and determine whether it might be better to choose a newer model which will cost more upfront but significantly less over time.

There’s no question that buying new things is exciting, but is it really necessary?  In some cases, the answer is a resounding yes.  Used laptops, for example, are never worthwhile, because you can’t really know what type of damage has been done to the item until it’s too late.  Ditto for used vacuums and cameras.  There are, times, however, where it’s not only sensible to buy used items, it’s actually beneficial.  Here are 10 items that I highly recommend buying used – not only to save money, but also to save sanity.

1. Books. I’ll let you in on a little secret – the information in used books is identical to the information found in new books, but it costs a fraction of the price.  In my experience, there are several distinct benefits of buying used books.  First off, used books often have binding that is already worn-in, so you won’t need to exert yourself to hold the book open.  Secondly, if you purchase used academic text books you can often find the previous owner’s highlighting and notes in the margins which may offer insights and ideas that can help you (or your child) succeed.
2. Toddler clothing. While many parents have an instinct to spoil their children, there is no rule that it needs to be with brand new clothing.  Toddlers have a tendency to ruin clothing quicker than others, and buying gently used toddler clothing is a great way to assuage the guilt associated with ruined clothing.  Not only will it be less painful to throw away used clothing that is ruined, but it’ll be less painful to replace it as well.  Sounds like another win-win situation to me!
3. Special occasion outfits. Whether you’re the bridesmaid, the mother-of-the-bride or the honoree at a community event, chances are good that you’ll need a fancy outfit that you may not have a need (or desire) to wear again.  Why spend hundreds of dollars on a one-hit-wonder when you can buy a used outfit for a fraction of the price?
4. Home accessories. You can find great deals on used home accents like mirrors and wall art, and even more functional items like cutlery and glassware.  These items don’t go bad and they can give an instant facelift to your home without costing you a fortune.  Be aware of home décor items that are out of style – but stay on the lookout for those that are back in style and can be scored at shockingly low prices.
5. Sports equipment. There are so many types of sports equipment that can be purchased used, from baseball mitts to hockey sticks.  You can even purchase home gym items used such as weight machines, treadmills and stationary bikes.  If you (or your child) is new to exercise or sports, buying used sports equipment is a great way to test the waters and see if you really enjoy your new hobby.  If your child is a sports enthusiast, buying used equipment will make it possible for you to upgrade your child’s equipment as he grows – without breaking the bank.
6. Video games and DVDs.  Most video games and DVDs are sold used because the owner is bored of them.  Your children can benefit from your neighbor’s boredom when you purchase used video games and DVDs.  And, when your children (inevitably) get bored of these purchases, you’ll be able to sell them to defray the cost of purchasing new-used video games and DVDs.
7. Music.  Much like people sell video games because of boredom, many people sell CDs because they’re tired of listening to the same music repeatedly.  Why shouldn’t you take advantage of the natural life cycle of a CD?  A word of warning – make sure that used CDs are not scratched before you purchase them.
8. Cars.  My mother used to say that when you buy a used car you buy someone else’s problems.  But (sorry mom!) this theory doesn’t hold much water these days.  Cars depreciate the moment you drive them off the lot, with most of them depreciating at least 12% in the first year.  If you’re in the market for a ‘new’ car and want something up-to-date, you can save money by purchasing a used car within the first year or two of its life.  Make sure you have it checked out by a trustworthy mechanic before finalizing the deal.
9. Cell phones.  If you need to replace your cell phone when you’re not entitled to a free upgrade you can score big savings by purchasing a used cell phone.  Not only can you find popular models like iPhones and Blackberries for significantly cheaper than their as-new prices, but you can also find cheaper models for next-to-nothing.  Purchasing the same phones new at your local Verizon or T-mobile phone store can cost you almost double.  If you’re buying a used cell phone online make sure to purchase from a certified seller, and double-check that the phone comes with the necessary charger and earpiece (when relevant).
10. Strollers.  Today’s popular strollers can cost hundreds of dollars (think Bugaboo, Quinny, Phil & Ted’s and others).  Why spend full price when you can get a used stroller for hundreds less?  When buying a used stroller make sure that it opens and closes properly and that the fabric is in good condition.  Many moms change their strollers based on what’s new or upgrade to a smaller model when their child grows – or a double stroller if the need arises.  Used strollers can be a great bargain and can provide years of reliable service.

Back to school shopping often involves a lot of begging, crying and compromise.  Your children will undoubtedly beg for brand-name pencils, expensive backpacks and other ‘necessary’ items that you’re sure they can live without.  Of course, there are times when you’ll give in and other times when you will just have to say no.  It’s all part of the joy of parenting.  But when you’re evaluating when to give in and when to stand your ground, consider the list below which includes some of the most impractical back to school products ever invented.  Trust me.

Sandwich keepers

It doesn’t matter whether you get your sandwich keeper from the dollar rack at Target or spend more on one that will keep your kid’s lunch hermetically sealed.  It will only take a week or two for your child to lose the sandwich keeper or for you to find it hiding at the bottom of her backpack with an indistinguishable lunch caked into every corner.  Do yourself a favor and invest in sandwich bags.  For under 3 cents per bag you can find Ziploc-style bags that will block spills.  For even less you can find fold-and-close style bags that I used as a kid (without many mishaps, I might add).  As an added plus, you won’t need to wash them nightly.  And, of course, you won’t cry when they don’t make it home from school, as you would with your child’s sandwich keeper.

Binder Clips

Let’s face it – even adults can barely figure out how to open these contraptions.  Children can seldom use them independently, and even if you can get 40 for $1, they’re hardly worth the money.  In cases where simple paper clips won’t do the trick, consider using staples or a folder.  Unless the teacher requires binder clips, of course – but she won’t, because she knows they’re completely impractical.

Character Backpacks

I don’t know about you, but as a kid, I did not get a new backpack every year.  It was at least every 2 years, if it wasn’t longer.  If you want your children to use their backpack for more than one year, refrain from purchases that have Dora, Bob the Builder or any other character.  Chances aren’t good that they’ll like that character throughout even a single school year.  Chances of your child liking the same character next year are nearly nil.

Travel-Sized Hand Sanitizers

I’ve seen these advertised as an essential for any middle-schooler’s backpack, so that your child can avoid germs like the plague.  The problems are twofold.  Firstly, chances are slim that your child will actually remember to use said hand sanitizer, or that she’ll be able to use it without looking ‘nerdy’.  Secondly, some studies suggest that stripping the skin of all protective layers actually makes people more susceptible to germs and illness, and you wouldn’t want to risk it, would you?

New College Textbooks

New college textbooks cost a fortune and will probably become outdated within a year or two (if not sooner).  Why spend hundreds of dollars on new textbooks when you can get used copies at a fraction of the price?  As an added benefit, you may also be able to get the previous owner’s notes in the margins or highlights in the text which will make studying slightly less painful.

Rubber Bands

I’m not claiming that rubber bands are a useless invention, but just that purchasing them is a waste of money.  Because these may be one of the least-used back to school supplies available, you can probably survive by hoarding the rubber bands that bind your newspapers, circulars and mail.  Start a collection now so that by the time your child needs one (if ever), you’ll have multiple sizes available.

Legal Pads

Legal pads may be great for lawyers but they’re not ideal for students, as the perforated pages are prone to detaching from the pad.  Worse, there’s no way to find the page you’re looking for without mercilessly adding post-it notes to denote where each of your recordings are found.

Know of any other back to school money wasters that I’ve forgotten?  Please let me know!