5 Expenses You Can Easily Cut {Even If You Think You Can't}
Have you ever wondered if there was a simple way to put more money in your bank account every month? To actually have money left over after all your bills, so you could do things like, pay off debt, tackle a home remodel, or save for a dream vacation?It's not as hard as you might think. I've created a resource that will show you hundreds of ways to keep money from escaping that bank account, called 31 Days to Radically Reduce Your Expenses. I'll tell you more about the book later, but first, I want to share five expenses people generally think they can't cut, yet despite their reputation, make a big difference in your bottom line.Let's get started!
1. Car Insurance
Car insurance is a frustrating necessity, yes? Most of us don't want to hunt around for quotes and haggle with a pushy sales agent just to get a better deal. But to avoid the topic entirely means we are essentially flushing hundreds of dollars down the drain.Enter....the independent insurance agent. Independent agents aren't loyal to one specific company and scout out multiple offers to make sure you get the best rate. Because they do most of the work for you, you get the savings, without the hassle!All you have to do is pull out your existing policy {so you have all the information the agent needs}, and spend 15 minutes on the phone with them while they research a better rate. We saved almost $150 on our policy with one simple phone call. If you don't know where to find an independent insurance agent, Dave Ramsey has a list of approved options for your area. Psst...you can also find independent agents for your other insurance policies as well!
2. Cable
Entertainment is one of those categories where it's super easy to cut back, even if you are totally addicted to cable or satellite TV. Before you tell me about the shows or sports you'll be missing out on, take a second to stop and think about all the money you're missing out on.Now, I LOVE my shows, {full disclosure, I'm catching up on Heartland every chance I get!} but I don't want to cancel my Summer vacation plans because I'm footing a hefty cable bill instead. So here's what you do:Find the best deal on internet that you can, {don't get sucked into another package deal}, then subscribe to Hulu, Netflix, Sling TV, or possibly all three. Most likely that will still be cheaper than what you were paying before, and you still get access to all of your favorite shows!Here's six more cable alternatives so you can pick the combo that works best for you.
3. Cell Phone Bill
Every few months a "fake news" story circulates on social media claiming you'll have to start paying for Facebook soon. Everybody freaks out and swears that if they have to start paying that they won't use it any more. Well my friends, if you have a cell phone data plan, you are paying for Facebook!Do you know that very few people actually need a data plan? The vast majority of people use their cell phone data mostly for social media, and I'd be willing to bet that you, or your family, are part of that majority. So do you have to give up your smart phone entirely, just to save a buck? Not at all!Most smart phones give you the option to automatically turn off apps when you are outside of WiFi. Just go in, turn off all your unnecessary apps, and leave the things that you might need {like maps}. If you have an iPhone you can see how to do this HERE. Then see how much less data you use over the course of a month—I promise you'll be amazed!Now you're ready to talk to your carrier about cutting your data plan to the bare bones, or switch to an economy carrier like Ting or Republic Wireless.
4. Mortgage
I know what you're probably thinking—your mortgage seems like THE most fixed expense in the world. In fact, the only way to reduce it is to literally pay money to have it refinanced. But....refinancing is not the only way to save money on your mortgage!For most of us, we spend nearly double the selling price over the life of a 30-year mortgage. All that extra money goes to the bank as interest, but you can actually save tens of thousands of dollars with one simple trick.Here's the scoop....make one extra payment each year. Sounds almost too simple, right? But it really works! Let me give you an example from 31 Days to Radically Reduce Your Expenses:
Let's say that you finance your home for $150,000 at a 4.5% interest rate for 30 years. Your monthly payment is $760.03. Over the life of the loan, you would pay a total of $273,610.07 to the bank.But if you make one extra principal payment of $760.03 per year, you not only reduce your mortgage by 4 years and 7 months, but you also pay only $251,022.59 - a total savings of $22,587.48 - just for making one extra payment!
Did you catch that? $22,587.48 in savings. Sounds worth the effort to me!
5. Unexpected Expenses
Unexpected expenses are the ones that really mess up my budget. Appliances break, the car needs repair, and of course, something major always happens to the house each year. In fact, these expenses often cause us to make poor financial decisions because we feel like we are alway in the middle of an emergency!Here's three things to remember:
- Breathe. Maybe you're water line just broke, but remember, next year this will just be a blip on your radar. Put this into perspective and remember that financial decisions made in a hurry can cause even more damage.
- Get multiple quotes. While it seems like multiple quotes take valuable time you don't have, it saves even more money in the long run when you ask around and compare prices.
- Buy quality. Don't make your decision on just price alone. Sometimes it may be worth going for a slightly more expensive option in order to keep yourself from a repeat emergency.
You'll also want to start an Emergency Fund if you haven't already. I know from first-hand experience how quickly an unexpected bill can wreak havoc on even the most well-designed budget. This is fate you do not want to test!Once you see the amazing transformation these changes have on your budget, you might just find you can’t stop. That’s a good thing! It means you’re ready for more.These tips are just a small sampling of what you’ll find in my book, 31 Days to Radically Reduce Your Expenses. If you want to go even deeper and radically improve your finances, this book is your go-to resource! Psst…today the Kindle version is just $.99, but you can also get it paperback too.
31 Days to Radically Reduce Your Expenses walks you through every part of your budget, and gives you the tools and resources to change your expenses for the better…even if you already think they’re as low as they can go. Consider this your personal roadmap to find more money at the end of every month, make lasting change, and start saving for what truly matters!
What expense do you feel like you can't cut?
Kalyn Brooke is the founder of the popular frugal lifestyle blog, CreativeSavingsBlog.com, where she empowers women to make their money work smarter, so they can create the life they really want. She strongly believes in pinching dollars over pennies, buying quality products over cheap substitutions, and living a life rich with purpose and intention….not deprivation. Originally from Upstate NY, Kalyn now resides in sunny Southwest Florida with her husband, Joseph, and one terribly spoiled rabbit, named Cody. 