With the specter of a deepening recession, households are looking at every possible angle to lower expenses. While reducing future purchases can lower one’s overall expenses, taking steps to get more out of your existing bills can provide an additional layer of economic protection in a difficult economy:
Review Your Existing Service Contracts for Potential Savings
Don’t let contracts deter you from looking for savings in your monthly bills – most service providers will allow you to switch between their various plans, without penalty. For example, review your cell phone bill to see if there are extra costs (such as text messaging fees, excess minutes, etc.) that can be reduced through switching to an alternative plan. You may also be able to save across your various bills – phone, Internet and TV by consolidating (“bundling”) them into a single provider. In many cases, you can find unrealized savings on your existing services, which can help your budget stretch a bit further during difficult times.
Check To See What Your Insurance Policies Cover
All too often, families will select an insurance provider without sufficiently going over the details on a given contract. For example, auto insurance providers often charge a premium for Collision and Compensation coverage which provides reimbursement in the case of an accident or theft. If you’re driving an older car, however, it may be more beneficial to stick to Liability, Property and state-mandated coverage, since the potential Collision compensation may be less than the actual worth of the vehicle. You can review the resale value of the care on the current market through the Kelley Blue Book to evaluate what your vehicle is currently worth. Taking a further look at your policy, check to see if there are any discounts you may qualify for, such as a lower mileage plan for infrequent drivers or a “good student” discount if you are insuring a car for your (assiduous) teenager. It may also be worth your time to shop around for competitive quotes from reliable providers to see if you can save by switching to a new policy.
Find Smart Ways to Reduce Your Grocery Bills
Everyone has to eat, even during a deep recession. The good news is that food producers recognize that people are looking for savings and provide a number of new offerings to help reduce the costs of feeding a family. Saving just 10% on your grocery bill can add up over time and can provide strong budget flexibility during difficult economic times. You should always make a grocery lists that covers exactly what you need; that way, you’ll stay disciplined when it comes to actual in store shopping. Always look for coupons and sales items that can easily be substituted: if ground turkey is on sale, consider making the spaghetti with that rather than meatballs. Additionally, you can often save by buying generic, store brand products which are virtually identical to name brand items, save their packaging.
Elise Degrass is a freelance writer, primarily writing about cell phones for cellphones.org. She appreciates your feedback at elisedegrass@gmail.com
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{ 4 comments… read them below or add one }
Bargaining can even work in retail stores.
My roommate just recently scored LEVI 501’s for $33 CDN – he just said to the manager that they were cheaper somewhere else and they matched the price … without really checking.
Thanks for the great suggestions on how to save in this tough economy. I wanted to write a follow-up post that buttressed the discussion of cutting wireless expenses. A major method that thousands of wireless subscribers are using to combat unnecessary charges is to have their cell bills analyzed through the website http://www.fixmycellbill.com by a company called Validas. You can find out for free if you’re one of the eight in ten wireless customers paying more than you need to.
I was able to save around $230 annually off my cell bill using Validas which impressed me so much that I joined the company when the opportunity arose. Validas is rapidly gaining a reputation as the preeminent advocate for the wireless customer. Check out a feature about Validas on The Big Idea with CNBC’s Donny Deutsch at http://www.cnbc.com/id/22782456/.
To give a brief rundown of how it works, Validas analyzes your uploaded online cell bill to determine how much money you could be saving. Up to this point everything is free. If you choose, Validas provides a highly detailed and personalized cell bill adjustment report that, for five bucks, is emailed to your wireless provider in industry specific format so you can actually implement Validas’s cash saving changes to your plan. If Validas can save you more than $5 on your bill (the average customer currently saves $482 annually through Validas), this obviously provides a cost effective remedy for reducing cellular expenses.
Good luck to everyone on effectively lowering their bills.
Dylan
This was a very helpful post. I know I have lowered my bills during this recession by being careful on how much energy I use. I also have tried to stay committed to my exercise program to keep stress low. There is a very cool post on http://www.fitandwealthyblog.com that discusses personal finance and physical health. Something to check out.
Also ask for lower rates on loans. We had a rate of about 6.25% on a car loan, and they lowered it to around 5.50%. Sadly, they wouldn’t reamoratize to lower the payment, but over the long run it will save me money.
If you have good credit you can also shop around. Once you have a better offer, your current lender may match.
This seems to be much harder with home loans of course, because they always want to get you with more doc fees and such. But I heard 30yr fixed mortgages were below 5%. For many, this will be a great opportunity to refinance. Just watch the extra fees.
cd :O)