This year is just clipping by! It is hard to believe that it is July, halfway through the year, and on the fast track to the holiday season. Before we know it, retailers will once again be decking the halls. But, before we start stringing lights, let’s focus on the here and now and take the time to do a mid-year financial review.
Mid-year is the perfect time to reevaluate annual financial goals, review recurring monthly service expenses, and research and update plans to lower the overall monthly expenses associated with these services. Here are a few steps and tips on reducing the cost of monthly service contracts that can add up to significant savings on a monthly basis.
First, gather all the statements that you pay a recurring monthly fee to and stack each in a folder. The folder should include the following monthly bills:
-Cellular Phone
-Cable / Internet / Phone
-Mortgage
-Insurance (Home / Auto)
Next, schedule the time to call one provider each day for a week. For example, one day phone your cell phone company, the next day call your cable /Internet/phone company, etc. Each call will take approximately 20 minutes to discuss and compare the existing plan, to a new and improved plan, and make the appropriate changes with a representative. Scheduling one call per day will allow you to focus on one plan at a time and will help avoid phone call burnout.
Here are the details to discuss with each servicer:
Cell phone service: Cell phone providers have been forced to reduce monthly fees to keep up with the competitive marketplace. When you call your cell phone provider ask the representative to first review your usage for the last six months. If you are burning through your minutes or wireless data allowance, you may be incurring steep overage charges. Find a new plan that will eliminate the costly overage fees and provides enough data coverage to meet your average usage.
On the flip side, if you are not using your full allowance of minutes and/or data, find a lower cost plan that will meet your average usage. Calling your cell phone provider and reviewing current options available will typically result in a new plan with a lower monthly cost and better coverage. Saving $20 a month on a new plan adds up to $240 per year. Well worth a 20-minute call.
Cable/Internet/telephone provider: Similar to cell phone providers, cable, internet, and phone companies have also had to lower their monthly charges to remain competitive. If you do not already have a bundle package, take the time to call your provider and research one. A bundle package provides discounts that can significantly reduce your monthly bill. While discussing current plans with the representative, be sure to review your cable package and determine if you truly need all of the channels that you are paying for. If you are not a big TV buff and rarely sit down to watch a show, it may be time to pursue a more cost-effective package that provides basic cable or an on-demand service like HULU. Eliminating movie channels, sports channels and every other trendy channel can greatly reduce a monthly bill.
And, finally, evaluate whether you really need a landline. Many individuals use their cell phones as their primary contact number and eliminate the cost of a landline.
Mortgage: The Fed held off on lowering interest rates in June. However, this decision should not stop you from taking the time to review your current mortgage. Rates are at their lowest levels once again. This is an excellent time to talk with a mortgage professional, review your current mortgage and determine if it makes sense to refinance. One half-percentage lower in interest can translate to substantial monthly savings. It is also an excellent opportunity to consolidate a first and equity line of credit, potentially remove mortgage insurance, or take cash out for home improvements. There are mortgage programs available to help meet most financial goals. For a complimentary mortgage review, please contact me directly (jbrydges@rpm-mtg.com or 925-552-3863).
Insurance: Be sure to review your home and auto insurance policies too. Having both policies with one insurance provider or increasing your deductible can provide significant discounts to lower monthly / annually payments.
This month take the time to get your finances sizzling with savings! Service Providers will rarely call you to offer a lower monthly fee (even if a better plan is available). Be proactive and take control of your financial future. There is no better way to be cool this summer than to be financially fit!
Jodee Brydges is a Loan Officer at RPM Mortgage and the author of Digging Out: A Practical Guide to Getting Out of Debt and Paving a Path to a Secure Financial Future, available on Amazon.com.
“Even if you use only one good suggestion from this book (and this book is full of great ideas), it could save you thousands. At $16 that is a great return on your investment!”
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