A Guide to Economizing

For most American families, inflation is rising faster than income. But some of the loss in buying power can be recouped through a little relatively painless economizing. Herewith an eight-point guide, distilling the advice of consumer-affairs specialists and home economists, to help a middle-income family earning about $13,000 a year save more than $1,000.

1) Grow vegetables in the backyard. A 15-ft. by 25-ft. garden planted with tomatoes, carrots, snap beans, peas, celery, spinach, lettuce, parsley and beets can produce about $350 worth of fresh vegetables at today's prices. Any surplus can be home-canned or frozen.

2) Buy a supermarket chain's house brand of canned and other processed foods; they sell for at least 10% less than well-known labels. In fact, many house brands are produced by name-brand food companies. Also, pass up "instant foods" that take less time to prepare but are usually more expensive than their inconvenient alternatives. By buying house brands and avoiding convenience foods, a typical middle-income family could chop $350 off its annual food budget.

3) Take time grocery shopping. Bring a list and deviate from it only to take advantage of daily specials. Shop on a full stomach. Reweigh all prepackaged meats on the scales that many supermarkets provide. Visit the reduced-for-quick-sale table, especially on Saturday. The New York City department of consumer affairs estimates that a combination of these precautions can chop 10% off a food budget, which could save as much as $350 a year for a middle-income family.

4) Make some of your own clothes. If time for that is lacking, buy washable clothing where possible, especially for children. Dry cleaning can add $10 a year to the cost of an active child's coat, dress or suit.

5) Use public transportation whenever possible. In most cities it is cheaper to take a bus or subway than to drive a full-size family car for a round trip of more than four miles. A commuter who lives ten miles from his or her job and must pay at least $1 a day to park could save several hundred dollars a year by taking public transportation--if it is available. Bicycling, if that appeals, could save even more: $750.

6) Conserve energy by insulating the attic and weather-stripping windows and doors to cut heating bills. Save on air conditioning this summer putting shades or blinds on windows that face the sun. Save on water heating by fixing leaky hot-water faucets and by draining heat-robbing sediment from the bottom of the water heater every month. Replace the refrigerator's neoprene door gasket if, when you close it on a piece of paper, it is so loose that you can pull the paper out. Use saucepans that cover an entire burner and use only a few ounces of water to heat vegetables. Total potential savings in an energy-efficient household: $300 a year.

7) Buy nonperishable items in bulk (but remember that meat requires a costly home freezer). Motor oil in bulk at a hardware or discount store can be half as expensive as single quarts at a filling station. Products like flour, sugar, soap powder and dry pet food can be bought in 10-, 20-or 25-lb. quantities, then poured into smaller containers at home. In many localities it pays to buy wine and hard liquor by the half-gallon, beer by the case and cigarettes by the carton.

8) Borrow wisely. Avoid finance companies (many charge 20% a year), do not incur finance charges on credit card or store charge-account purchases (up to 18%), and take out a personal loan from a bank (about 12%) only as a last resort.

By paying insurance premiums annually instead of monthly, you can often save about 4% of the total cost.

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