Wednesday, February 16, 2011

Saving on things you are already paying for!

As life goes on our monthly expenses typically go up. $15.99 for Netflix, $49.99 For cable and add another $25.99 for Internet and phone bundle. $25 a month for your gym pass and $125 for insurance on your home and cars the list of monthly expenses goes on and on. All too often we are looking for ways to cut back our expenses but we do not look at ways to cut back those automatic monthly payments.

Insurance: If you have not changed your insurance in the last 2 years the chances are you are being over charged. Insurance companies offer really great introductory prices to get you to sign up. Then they hope you will stay with them for years as they slightly increase your insurance overtime to add to their profits. You notice how every insurance company says they can save you hundreds of dollars on insurance each year? It's because they can, get free estimates and see how much you can save. Not to mention if you really love your insurance most of the time if you show them you have a better price from someone else they will typically match it to keep you as a customer. We did this just a month ago when we needed to add a different car to our insurance. The rate my current company was giving me was more than I was getting from others. As soon as I showed them they lowered my monthly payment $30 to match what the others were offering.

Cable: Every satellite and cable company offers great deals and incentives for new customers. It's typically a great idea like with insurance to shop around for the best deal and switch coverage every so often. Starting with the new company will usually lower your payments and get you all of the new hardware. However you may not want to leave but reminding your current company that you can get a better deal somewhere else will almost always lead to a better price with your current company.

Gym pass: Gym passes are either really good or really bad. I find that 80% of the people do not use their pass. So if you are not using your pass get rid of it and find a new way to exercise and stay in shape. However if you are planning to renew you should try to get a better price. When my wife and I canceled our passes they offered to give us half off per pass to renew. We were not utilizing them but $22 a month isn't too bad for two passes.

Credit Cards: I am not a fan of credit cards and encourage people to get rid of them. If you are paying of credit card debt look into lowering your interest rate by giving them a call. More often than not they will lower the interest rate. If they don't threaten to transfer the balance to a different card with a better rate. This will save you money on interest leaving you with more to put towards your debt.

The point is all to often we are over paying for services that are a luxury. So finding ways to cut back on those can really save a lot of money in the long run. What kind of things have you been able to lower your monthly payments on?

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