This post is one of a 13-part series focused on money resolutions for 2013. You can check back on the first post to see an updated list of the subsequent ones.
We’ve already been working on trimming down unnecessary expenses from your budget. However, regular or monthly costs can sometimes go unnoticed. While it’s true that you need essentials like electricity, heat, gas, and an internet connection at home, let’s take a closer look at subscriptions like cable TV and gym memberships.
First, ask yourself if you’re actually using all your memberships—whether it’s the gym, magazine subscriptions, or associations. Are you watching enough TV to justify paying for a cable package? Do you visit the gym often enough to make the membership worth it? Could that $100 gym membership be better used to pay off debt or save for financial independence?
Some fees might seem normal, like a monthly banking fee or an unlimited local calls fee on your cell phone. But did you know some banks offer free banking? And you might not be making enough local calls to justify that fee on your phone bill.
In my experience with a Guatemalan cellphone provider, they tend to add unwanted fees like a $3 monthly “SOS” concierge service unless you specifically ask to remove them. Even with changes in plans, these fees can reappear.
If you have insurance on your cell phone, review the terms. It’s possible you won’t get much back if something happens to your phone, especially after depreciation. Check if these fees overlap with your credit card coverage or home insurance.
When it comes to utility bills, it’s now quite easy to switch companies using online calculators to estimate your savings. Even a $20 reduction on your electric bill can add up to $240 a year. If you’re satisfied with your current provider, give them a call and ask for a better deal by mentioning you’re considering switching.
For your mortgage or rent, it’s worth looking for better rates or negotiating. Tenants can try to negotiate their rent to freeze or decrease at the lease renewal. Homeowners should explore refinancing options to secure the lowest interest rates available. These adjustments can result in significant savings.
The list of potential savings is extensive. You can find credit cards with no fees, avoid ATM withdrawal charges, stream movies, and TV shows online, and keep only the supermarket memberships that you use regularly. Sharing memberships with friends and neighbors and reviewing insurance premiums are also great strategies.
Go over all your monthly expenses and keep only those that are necessary, entirely used, or cannot be reduced further. This process is simpler than it seems. It shouldn’t take long to contact your utility providers and comparison websites are user-friendly, with some even offering cashback on switches. These steps can create more flexibility in your budget to achieve your 2013 goals.
If your budget is already in good shape, consider automatically transferring any savings to a savings account or using them for debt repayment since you’re used to spending that money monthly.
Have you cut out unused services or decreased your monthly bills recently?