How to reduce your spending by $500 each month

In these tough money times, figuring out how to reduce your spending by $500 a month would cause excitement in most households.

“Cut Your Spending by $500 Per Month,” an article in the August issue of Consumer Reports, offers six tips to find savings in everyday spending. The tips include:

1. Find cheaper auto insurance – Savings, $65.
2. Optimize your life insurance – Savings, $110.
3. Shop smart for food – Savings, $200.
4. Call up phone savings – Savings, $35.
5. Stop paying bank fees – Savings, $25.
6. Pay off your credit card – Savings, $65.

The article offers details on how to carry out each strategy.

What should you do with the savings? Consumer Reports suggests you put more into your 401(k), IRA, or other tax-deferred retirement account.