Welcome to my 52 Ways to Save $100 a Month series. We’re serious about saving money in 2016. Sometimes it’s the little things and sometimes it’s the big things. I’m here to walk you through some little things that can add up to BIG savings. 52 little things to be exact. Every week, join me back here for another small money saving tip or idea that might not seem like significant savings until you see the overall yearly savings. It might just blow your mind. So pop in each Tuesday and read a new tip that will help you on your way to save $100 a month!
How can a simple phone call save you $100 a month? Well, it could potentially save you much more. It’s easy to get into the routine o life. We go to work, pay our bills, wash, rinse and repeat. But when was the last time you took stock of all the bills you were paying? Have you have the same insurance for years? When was the last time you called around to check on cable TV discounts offered? Have you looked at mortgage rates lately?
Making a simple phone call after looking over your finances can potentially save you thousands. It might not be convenient. You might be passed around from customer service rep to various agents and you might have to deal with a lot of elevator music, but the as always, the potential for savings makes it worth it. Here are some phone calls you should make:
To Your Insurance Agent: First, find out what type of coverage you have and if it still makes sense in your life. If you have an older car that is paid off, liability insurance might be a money saving option that makes sense. Examine life insurance as well as home and vehicle insurance. If you are loyal to your agent, ask if you qualify for any additional discounts with your current company and what the absolute best premiums they can offer are. Then call around and compare prices. You might decide it’s not worth it to switch all of your policies over, but if the savings is significant, it might very well be worth it!
To Your Banker: Ask about current mortgage rates. Rates are historically low right now, so you might want to look into refinancing. Since the interest paid on a mortgage is one of a homeowner’s biggest expenses, it makes sense to reduce it if possible. A 1% interest rate reduction on a home of say, $200k would save you over $100/month. That it tens of thousands of dollars in interest over the life of your loan. You might also want to look into a term reduction. The monthly cost of going to a 15 years term from a 30 year term might be higher, but the interest rate will be less and the total reduction over the life of your loan will be in the thousands.
To Your Financial Adviser: Do you have idle money stored away in an account earning piddly amounts of interest? Are you properly using IRAs so help your end of the year tax situation? Are you stashing enough away for retirement? One phone call and your adviser can do a full financial health checkup. Some of the savings might not be felt immediately, but all will save you in the long run.
To Your Utility Company: Many power companies offer ways to reduce your monthly bills if you sign up for their energy conservation programs. Often this will include shutting off your a/c unit for a determined number of minutes per day. They offer you a credit on your bill, which will help reduce your overall expenses. You can also ask about a level pay billing system. That allows you to pay the same set amount each month {typically based on your previous year’s total usage divided by 12} instead of seeing a huge fluctuation in your bill. While this won’t save you money, it will allow an easier time setting a consistent budget.
To Your Cable Company: While we already talked about breaking up with cable all together, if that’s not an option for you, calling around for the best rates can at least help make a dent in that bill. If you’ve been a loyal customer, they should be willing to cut you a deal.
What phone calls have saved you the most money? Do you like to take the time to shop around?
How Much Can You Save: $40,000+ This is obviously if you go the refi route. But over the course of a 30 year mortgage, that’s how much a 1% rate reduction will save you. WOW!
More Ways to Save:
52 Ways to Save $100 a Month | Clean Out Your Closet {Week 1 of 52}
52 Ways to Save $100 a Month | Break Up with Cable {Week 2 of 52}
52 Ways to Save $100 a Month | Barter Better {Week 3 of 52}
52 Ways to Save $100 a Month | Change Your Own Oil {Week 4 of 52}
52 Ways to Save $100 a Month | Adjust Your Thermostat {Week 5 of 52}
52 Ways to Save $100 a Month | Take Advantage of Your Perks {Week 6 of 52}
52 Ways to Save $100 a Month | Pack Your Lunch {Week 7 of 52}
52 Ways to Save $100 a Month | Make It Yourself {Week 8 of 52}
52 Ways to Save $100 a Month | Preserve Your Bounty {Week 9 of 52}
52 Ways to Save $100 a Month | Keep the Change {Week 10 of 52}
52 Ways to Save $100 a Month | The Art of Borrowing {Week 11 of 52}
52 Ways to Save $100 a Month | Ditch the Gym {Week 12 of 52}
52 Ways to Save $100 a Month | Clip a Coupon {Week 13 of 52}
52 Ways to Save $100 a Month | Start Your Garden From Seed {Week 14 of 52}
52 Ways to Save $100 a Month | Learn to Cut Hair {Week 15 of 52}
52 Ways to Save $100 a Month | Become a 1 Car Family {Week 16 of 52}
Chris says
We are in the process of doing this right now. Look at each bill and if you don’t know what a charge is, call and ask.
We were paying 12.00 extra per month for our teens’ cell phone plans. They were charging us for insurance we didn’t want. We called and cancelled that.
We were paying an extra monthly fee in order to pay our car insurance monthly. We now pay every 6 months with no service fee.
My daughter’s bank account was being charged 6.00 a month because she was getting paper statements for her checking and savings accounts. We now get emailed statements.
Mavis says
It’s crazy how those little charges start to add up. Most of the time, you don’t even realize they are there. Good luck with the process!
Patty P says
We were so tired of paying SO much each month for entertainment that we totally ditched our cable ( I did shop around, but the introductory rates were great and the long term rates were not) and bought a digital antenna. With the antenna and Netflix we are good to go (and now that the warmer weather is coming, we won’t have to “feel bad” about wasting money on cable that we are not watching). We also got rid of our cell phone plans and now have pay as you go plans. I hardly use my phone ( I kind of like not having to be tied down by the thing!). We also bought our own propane tank, so we get a much, much cheaper rate when we buy propane about twice a year (as in we are on our second fill up and we’ve pretty much paid for the tank with our propane savings. I also try NOT to use the propane (we have propane hot water heater, stove, furnace, and dryer–we use our wood stove all winter and I have a clothing rack I hang out clothes on in the same room as the stove for drying clothes in the winter and hang them out in the summer, so we hardly use the furnace or the dryer).
Jessica says
Our cable/internet/home phone bill was getting crazy expensive. They were adding more and more on and at close to $300 a MONTH we got fed up. I looked up ways to lower our cable bill. I found out that the customer service employees working in the cancelation department have the ability to give way better deals than a normal customer service employee. Feeling risky, I gave it a shot knowing that it may not work and I could end up actually canceling our plan altogether instead of negotiating a better deal. I called Comcast and asked to speak to someone to cancel our plan. That employee offered us a plan with no home phone, but everything else we needed plus the fastest internet speed. Walked away with a cable/internet plan for $120/month less than we were paying before. That one phone call has saved us over $1000 a year!
Mavis, you’re right; one phone call can mean big savings!
Tracy says
I buy my cable, Internet and phone service from the same provider. Every year, I call and haggle the bill down. The “disconnect” department finally caves and offers me the newest promotional discount for one year. I mark the date and call back a year later and get these discounts continued for yet another year. I’ve been doing this for 20 years! I did the math once and realized that that single call every year has saved me almost $13,000 over the 20 years!
Mavis Butterfield says
Holy cats Tracy!!!
Maria says
Being of the age to belong to that association of retired people (not sure I can mention the name here), I pay $16/year membership dues. I get. $6 off my cell phone bill each month. This is a savings of $56/year.