Cutting Monthly Bills Out of Your Budget
Give yourself a raise and cut unnecessary monthly expenses out of your budget. Saving approximately $200/month is similar to getting a $5,000 raise when you consider taxes and other miscellaneous paycheck deductions. This may seem like a good, but unrealistic idea–perhaps, but at least look at your expenses and see if you can cut some of the following monthly money drainers.
Netflix. What?! Don’t take away my movies! I know how exciting a movie in your mailbox may make you when you come home for work, but how happy are you shelling out $20+ a month? Movies are great, don’t get me wrong, but there are better and cheaper methods for renting them. I’m still a huge fan of Redbox. Check out their website and see if one of their boxes is close to your home. Movies are $.99 and free on Mondays. Some things are worth repeating, Redbox movies are $.99 and free on Mondays. Are you watching 20+ movies a month with Netflix? We would never pay for way more food than we could possibly eat month after month, why are videos any different?
Phone Bills. Obviously we can’t live without a phone, but many of us are doubling up on coverage and in the process, doubling up our expenses. I recently wrote about switching to a pay-as-you-go monthly service on your cell phone, which is a great option for those of us that sparsely use our cell phones. Home phone lines seem like something we are supposed to have because our parents had them; they give us a sense of stability. But why have a home phone line that you only use to hang-up on telemarketers? Ditching this could save you upwards of $30/month.
Satellite Radio. If you would of asked me 10 years ago if people would ever consider paying for radio, I would have said you’re nuts. Now, I’m one of them paying each month for Sirius/XM radio. I love listening to talk radio and random radio stations on the way to what can be long commute in and out of Washington, DC, but I’m starting to doubt the worthiness of this expense. I seem to be looking for better songs more than actually listening and most of the talk shows I enjoy most are on ESPN radio, which is free.
Useless Insurance. Many of us have overlapping insurance coverage and have no idea. For example, many people pay extra each month on their car insurance for towing and entry into their vehicles when their keys are locked inside. These same people may also belong to AAA, which provides the same services. Look deeper into your insurance policies and see where you can cut the fat, or in some cases, cut the insurance completely. Credit card insurance is one you can probably get rid of, especially if you don’t carry a balance.
Gym Memberships. Lets me honest, are you getting your monies worth? If you find yourself going to the gym once or twice a week, your likely better off choosing free, but still healthy choices like running, playing recreational sports, and On Demand exercise routines. Rather than keep shelling out the monthly expense, purchase equipment that will last forever and provide free exercise down the road. With little to no money you can: run, play tennis, lift dumbbells, do sit-ups and pushups, ride bike, walk, countless abdominal routines, and more.
Magazines/Newspaper Subscriptions. Maybe you love reading the newspaper or getting new magazines in the mail, but do you find yourself struggling to keep up with them? At times I feel like its work to keep up with the Washington Post and the few magazines I get. The solution may be to cancel or cutback on the subscriptions. For example, just get the weekend paper delivered and on the weekdays you actually have time, pay the $.35. Consider canceling some of you magazines and only keeping your absolute favorite subscriptions.
What have you cut from your monthly budget? $
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Great tips! Sometimes, these stuff you mentioned get passed off as “necessities” but people don’t really use them anyway. I myself have been given a new perspective because of the recession. I’m using my cellphone less, and I’ve learned I can live without cable TV and certain other luxuries.