Now that Tax Day has come and gone you may be more focused on your finances. Enhancing your financial picture is difficult but possible if you simply change your approach to “saving.” Aside from taking on a side hustle or new job with a better salary, the best way to put more money in your pocket is not to make more but rather to reduce your expenses. Here are seven easy things that you can do to instantly shave hundreds off your monthly bills.
1. Select a more cost effective phone and Internet service provider: Years ago when I worked at AT&T I learned that customer service reps are required to tell you about ways to reduce your bill – but only if you ask. It’s still something that very few people take advantage of. Call your service provider and ask, “what is the best (i.e., most cost effective) plan based on my calling and data usage habits?”
2. Request a lower interest rate on credit card debt: Again, this is something that can be done – IF you ask. This courtesy can be extended to anyone, not only the “best customers” with perfect credit.
Call your credit card company and explain that you saw another credit card with a much lower interest rate and are thinking of transferring your current balance to another company. Many financial institutions will offer you a lower rate on the spot. If they don’t, ask to speak to a supervisor in the “loyalty” department. Remember, saving even 2% off your current interest rate can translate into more than a hundred dollars over the course of the year. 3. Tap into employee or association discounts: Did you know that working for local, state, or federal government agencies (including College’s and Universities) or select private sector companies qualifies you for government and reduced rates at hotels? These rates are sometimes as much as 25% cheaper than what you can find online. You also may be eligible to receive discounted prices at stores, restaurants or transportation providers like Amtrak for being a member/alumni of a college/university, professional association, or organizations like AAA. Before booking that summer vacation, research your eligibility for discounts offers and rates.
4. Return or sell new and unused items for cash or store credit: Take those unused clothes with the tags still on back to the store. Many companies will offer you a store credit for things you don’t want or can’t use. Look into stores that will buy your items outfight or on a consignment basis (i.e., they keep 60% and you get 40% of whatever sells). Use the newly found money/credit for something you really need.
5. Swap cable for a streaming service: If you are still paying for cable tv - STOP! Changing to a service such as Sling, Hulu or Netflix can quickly save you money.
6. Change your withholdings on your W-2 income: Increasing the number of withholdings on your W-2 income can mean less of a tax return at the end of the year but more money in your pocket each month. Even if you are single with 0 dependents, you can claim multiple withholdings. Check with your HR department for more information.
7. Reduce your personal expenses: We’ve all heard of the “latte” factor – being able to save hundreds of dollars a year by cutting out daily and weekly trips to Starbucks and other expensive coffee shops. Similarly, you can cut back on entertaining – a primary contributor of long-term financial problems. Make it cool and fun to be thrifty by going “all you can eat”or bringing your lunch and eating with co-workers who are doing the same. On the weekends, invite friends over instead of the expensive night out. Do whatever you can to minimize what you spend. Encourage your friends and family to do take the savings challenge with you and together find and share creative ways to cut costs.
Financing a career change at any age or stage is doable with a little creativity and effort. Even if you are living paycheck to paycheck, everyone can make little changes to create big savings. This week stop your financial grind and start working smarter not harder when it comes to “saving” by reducing your expenses.