When you are trying to get out of debt and pay down high loan balances, you need to be ruthless about examining every single expense and trimming them where necessary.
To truly save money, you need to look at all of your regular monthly expenses – cable TV, cellular phone, health club, insurance – and see where you can trim the fat.
And you will be amazed at how much fat there is.
Cable TV – if you’re in debt and paying late fees and high interest rates, Cable TV really is a luxury. If you absolutely feel that you can not live without it, trim expenses like HBO and Showtime and other expensive movie packages. Also, find out how much extra it costs to have DVR boxes and multiple cable units and remotes. It’s very likely that you could trim your bill significantly if you pare down.
Cellular Phone – If your contract is up, this puts you in a position of strength. If your current company won’t give you a discount – time to find one that will. If you are stuck with your current company, eliminate texting packages and examine very carefully how many minutes you really use per month. Most home telephone plans offer free unlimited long distance as part of their basic package these days. So you can use the home phone more and the cell phone less. For that matter – do you truly need a home AND cell phone?
Gym membership – Bargain hunt. If there is a cheaper gym in your area, tell the manager at your gym – not in front of other members, of course – and show him or her the proof. If he or she won’t lower your monthly rate to match it, then give however much cancellation notice they require and move on to the cheaper gym.
Insurance – Are you overinsured? Do your homework, find what’s an appropriate amount of coverage, and don’t pay for more. This goes for homeowners insurance, life insurance, car insurance, renters insurance, liability insurance, et cetera.
