We often focus on eliminating one-time expenses like a shopping spree, the occasional Starbucks latte, or that new LCD TV, but we tend to neglect the monthly bills that we’re paying every single month. Companies love collecting monthly fees from you, and one of their key strategies is to make that amount small enough so that you don’t notice it too much. $29.95 doesn’t sound like much at all, but $360 over the year sounds like a lot. You wouldn’t pay $360 up front for a lot of the services that you pay $30 for on a monthly basis. Here’s a list of five bills that you can eliminate today without noticing too much and save a TON of money.
Your Land Line Phone
I know there are still many of you who are old school and like having a land line, but with the improved technology of cell phone reception and plans with virtually unlimited long distance calling on nights and weekends, the land line has lost a lot of luster. Now voice-over IP phones that work over an internet connection are becoming big and they offer unlimited features and long distance calling for under $25 a month. Many traditional land lines with all of the features and a long distance plan can run $30 to $50 a month. Let’s face it, the only people that call you on your land line now are telemarketers and your parents.
Total Possible Savings: Up to $600
Your Gym Membership
I know, you have good intentions of going to the gym, but I’ve realized that when I look around the gym, the majority of the people are young, single people and older, semi-retired people. Very few 30-something and 40-something mothers and fathers with jobs are in the gym very often. It’s because we don’t have time, and that’s okay. There are plenty of other great ways to get exercise like jogging, long walks, riding your bike, and buying two sets of dumbbells. There are so many great workouts you can do at home with a couple of sets of dumbbells and doing some push-ups and sit-ups. The average full-service gym membership runs about $40 per month.
Total Estimated Savings = Up to $480 or $960 for a couple with two memberships
Your Extended Cable
You’ll hear a lot of financial planners tell people to get rid of their cable. That’s fine, but I’ll be real with you, there’s something very relaxing about sitting on the couch and watching your favorite mindless TV show. It’s a release we all need sometimes, and cable is nice to have for sports fans, as well. However, I do think it’s a little ridiculous to see just HOW much people pay for their cable. Many families pay for the premium cable packages with movie channels and/or premium sports packages and they end up paying $75 to $80, rather than $45 to $50 per month. Get rid of those premium cable plans.
Total Estimated Savings = Up to $360
Your Home Warranty
Home warranties seems nice, but you probably pay $400 to $500 a year for them, and most of them still carry a $100 deductible for any claim that you make. Plus, they very rarely replace anything, and do mostly just repairs. They can be a lifesaver in rare instances, but getting rid of the home warranty can be a good way to save some money. To combat not having a home warranty, have a fully-funded emergency fund to help you with unexpected house expenses.
Total Estimated Savings = $500
Supplemental Insurance Policies
A supplemental insurance policy would be something like an accidental policy or short-term disability. Again, you can eliminate up to $300 to $500 per year by eliminating these policies from your benefits package and save up a large emergency fund to help fund unexpected deductibles or other out-of-pocket expenses.
Total Estimated Savings = $400
Get rid of these bills, and you could save roughly $2300 per year! That’s over $20,000 over a 10 year period! I’ve even listed bills that you wouldn’t even notice that much not to have anymore. So, what do you think, are you ready to save some money?