You should not be comparing interest rates of today and 3 years ago (the good old 5% days)…rather the comparison is between what you can get from lets say High yield HSBC account vs. Brick and Mortor HSBC Account.

When I helped out a buddy a couple years back, he had made more in one month’s interest than he did the whole prior year.

Great post. When I do a plan for folks, I see many of the items you mentioned here. Lots of low hanging fruit that makes a big difference over time.

The only comment I would have on your list is watch out for the 0% transfer on credit cards. Due to the changing credit card law, many card companies are now charging a 5% transfer fee. Some haven’t yet, but this will become a standard practice. That often negates the benefit. Just make sure you do the math and know all the associated costs.

The other big area most people overlook is insurance. Get your auto and home insurance quoted by independent agents or online. You can often save 10% by switching. Sure, there is work involved, but it is worth it over time. Even if you are happy with your current provider, you can often get them to cut their rates if you show them quotes from other insurers. Also, make sure you have a higher deductible. I see so many people with $100 deductibles for auto or homeowners. I usually recommend $500 or $1,000 (for those with an emergency fund). You can save 6-10% by doing this.

Also, quote your life insurance. You may find that term rates are lower now than when you got your policy in force. This is true even if you are a few years older. And, get rid of any cash value life insurance in favor of term. That will save you tons over time.

But, you are so right. Small differences do add up.