New year, new savings: 7 tips for monthly bills
The holidays are over, and your glide into the new year is interrupted when December’s bank statement rolls in. While all those holiday purchases likely have something to do with your depleted funds, there might be a few other places you’re blindly spending more than you have to.
Monthly expenses, like cellphone bills, gym memberships and auto insurance, can be so ingrained in day-to-day life that they’re rarely re-evaluated to see where money can be saved.
Money-saving and consumer expert Andrea Woroch says not reassessing these bills misses potential savings.
“A lot of people have their expenses set,” Woroch said, “and they just assume that these set expenses work. They might shop around when first looking for those plans, but they don’t put in the work and effort to see if there are savings opportunities out there. Often times, this is leaving money on the table.”
For some, reassessing isn’t the issue; rather it’s changing providers. The actual process of swapping services can be a timeconsuming hassle, and some fear a change will lessen their quality of life.
Woroch says to just bite the bullet and look at the change as more about getting on top of how you live, as opposed to depriving yourself of things you enjoy.
“Be open-minded,” she said. “You can get the same quality services for less.”
If you truly want to live out your “new year, new me” mentality in 2019, start with assessing your monthly expenses, seeing if there are new promotions and if you’re using a service fully. Below Woroch offers tips on how to reduce your monthly expenses. Cellphone plan. Are you using all those minutes? Most people don’t use 20 percent of their data, so they’re overpaying. Call your provider to see if it has something available; it might have a better rate or a suggestion on how you can save on your plan. Another option is a pay-asyou-go plan. This helps save if you don’t use all your data and texts.
TV and cable. Try an HD antenna to get local channels — for instance, for sports. Then pair it with Sling TV, which costs $20 a month for a bunch of movies and channels — a big help with entertainment costs.
Auto insurance. Shop around for a rate each year — studies show that consumers save up to $300 when they switch. Use an auto insurance comparison site like thezebra.com to see options in your area. If you’re a great driver, you might be better off increasing your deductible to $1,000 or $2,000. It’s high, but it’ll save you money every month over a couple years, and if you don’t get into an accident, that’s big savings, especially if you have a savings net to cover those expenses. Subscriptions and memberships. All those $5, $10 and $20 monthly expenses really add up. Look at what you’re paying every month, and ask yourself are you using it. Can you cancel your gym membership and opt for a punch pass to pay as you go? Be realistic.
Smart home devices. Depending on where you live during the winter and summer, you can control your energy levels with a smart thermostat. Unplug all your devices when you’re not using them. A cellphone charger plugged in is still sucking energy. Use a power strip, and just shut it off when you’re not using it, especially when you go away on vacation.
Transportation. It’s definitely important to have this written into a budget. Look at the past three months, and see how you have been using ride-share services and if there are ways to cut back. Is there a bus or train in your area that you can use a couple of times a week when it’s convenient and you have extra time? Save the rideshare rides for when options are limited. In the moment, it can seem like a one-time expense, but over the course of a month, you could be overspending.
Beauty and fashion. Don’t browse the internet and your favorite retail stores when you’re bored — that’s going to lead to impulse purchases. Turn off those push notifications on retail apps, or just delete the app altogether, so that you don’t get that alert when there’s a big sale going on at your fave store. Look for deals when you’re actually shopping for something you need. Couponcause.com is good for a bunch of online retailers.