Over the past year I’ve been doing pretty well on budgeting my families money out each month. Over the past few months I’ve been on a mission to save money by reducing the bills I pay each month. To highlight a few area’s where I saved some money I’ve written the following. I include my monthly savings and then add it up at the end of the article to show that even a savings of $25 a month can really add up over time!
Car Insurance
For the longest time due to my age, gender and driving habits I was paying through my teeth for automobile insurance. Adding to my factors my wife only recently obtained her license and was listed in the system as a new driver thus increasing the rates we paid each month. My old insurance bill with Allstate was $236.00 per month which gave me full coverage on both vehicles. When I turned 25 I expected a drop in my rates, when I followed up I learned that my rates increased to $248.00 per month. I began shopping for insurance shortly thereafter and found USAA to be better suited at a quote of $121.00 for an increased coverage.
Total monthly savings: $127 per month
Gym Membership
When I started at my old local gym I chose the gym due to its proximity to my house and the classes that were included in my $65 per month fee. After a year of going to the gym my rates were raised $10 per month for a total of $75 per month membership fee. I thought about it and realized I only really use the weights and cardio equipment and the gym near my house had closed. I was now driving a farther distance to get to the gym which eliminates my first reason for joining. I also realized that not once in the year that I went to the gym did I attend a single class. I filed my discontinuation paper work after joining Bally’s Total Fitness for a total monthly membership fee of $31 per month.
Total monthly savings: $44
Cable, Internet, Phone Package
I don’t watch cable television so I actually consider the money I spend on T.V as a waste. However, my wife would kill me if I got rid of the cable television. Our monthly bill was $155 per month for the triple package. I started calling every month to reduce my bill down to $130.00, but you really need to do this on a consistent basis, every 6 months or so. Time warner began running a Price Lock Guarantee which I signed up for at a guaranteed lock for 2 years of $130.00.
Total monthly savings: $25.00
Cell Phone
having two phones we had many minutes shared between my wife and I. Neither of us really talk a lot on the phone except to each other. The minutes we use talking to one another count as mobile to mobile minutes so they don’t cost us anything. I realized this paste week that we have accrued over 10,000 roll over minutes which means we really aren’t using the minutes I’m paying $135 for each month. I changed our plan to the lower amount of minutes for a total monthly cost of $105.
Total monthly savings: $30
Savings Everywhere
When you really start analyzing your monthly expenses you can start to find little area’s to save money. Many of us get caught in a situation where we rationalize small payments each month by telling ourselves “well, it’s only $50 per month.” The unfortunate reality is that $50 per month, combined with a few more can really add up quickly. Just from the above adjustments I’ve made I realized an annual savings of: $2712. What could you do with almost $3000 a year extra? Consider that amount of money invested over 20 years at an 8% return! What expenses have you shaved off in order to save some money?
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[...] Money gives a few good suggestions for reducing those monthly bills. (And fewer monthly bills mean more money toward debt [...]
It definitely pays to shop around! I love USAA, but like you’ve I’ve come and gone from their insurance because of differing rates.
I have done some of the same things… as for the car insurance, I also save and pay the 6 month policy in FULL… that also gives you the savings of those extra $6 per montly payment. I also save by paying my Life Insurance in full.. those couple of dollars always add up!
Even if you shop around and find the lowest rate, you should do it again in another 2-3 years, especially with insurance. You would think that as your cars get older that the insurance rates would go down - but they don’t. Crazy. And with some of the others, you can even get rid of them. I lived for more than a year without cable TV, and as hard as it was, I read more, listened to the radio more, and found it very relaxing (and it saved me a few hundred bucks!)