10 Monthly Expenses To Audit for Savings
Now, with the end of the year coming and a new year on the horizon, is a good time to look closely at your monthly expenses to see where you can reduce your spending and put that money back into savings or investments. It's good to do an audit once in a while, since we tend to spend money on things and then forget about them or circumstances change and we no longer need to spend as much as we have in the past.
Here is a brief list of expenses you might want to look at:
Mortgage / Rent - Look at refinancing your mortgage if you haven't already done so. Even if rates have gone up, your payment could still be reduced since the new mortgage will be amortized over a new 30 year term, which can save you money every month; if you rent, look at moving to a new apartment with a lower monthly payment - many areas, especially on the coasts, are seeing lots of new apartment buildings opening and they are competing for your business
Car Payment - Trade in your car for a smaller, more fuel efficient car - consider buying an electric vehicle to save money on gas and help the environment; if you live in California, there are many rebates available for purchasing new or used electric vehicles, installing a home charging station and other incentives. There are also many great incentives available for low income households to help buy a new electric vehicle. Go to Drive Clean website for more information.
Utilities - If your appliances are old and failing, install new energy efficient appliances (many times rebates are available from the local utility for energy efficient washers and dryers). Check with your electric company to see if your electric usage warrants a different rate plan that can save you money - it's pretty easy to do this online. Do this especially if you buy an electric vehicle and charge at home.
Cable TV - Consider stopping service for TV and just keep internet only; this is a great way to save money every month and there's still plenty of entertainment options with high speed internet. I'll admit the only thing that's a little tough is watching sports without cable TV!
Credit Cards - Pay off credit cards with personal loans at a lower interest rate. I recommend Prosper, a good peer to peer lending platform - if you have good credit you should be able to qualify for a lower rate than credit cards offer. A few other personal loan options include: ICashLoans, GotLoans and ThriveFinance.
Subscriptions - Do you still have newspaper or magazine subscriptions that you don't really read? Cancel them! How about online monthly memberships? Review your credit card statements for these charges and cancel the ones you don't use anymore. I had a guest membership attached to my LA Fitness membership that no one ever used, so I cancelled it and saved a few dollars a month. These types of things can add up.
Cell Phone - When was the last time you checked with your cell phone carrier to see if you have their best deal? You may be able to switch plans and save money if you spend a few minutes on the phone. There may also be discounts based on your employer that you may not be taking advantage of.
Insurance - Call your insurance company and see what you need to do to lower your rates. Maybe increase your deductibles? Maybe your car is paid for and is older now and you don't need as much collision coverage? Look to switch insurance companies if you can find a better deal elsewhere.
Food - Eating out can get very expensive. If you eat out for lunch a lot, try to bring lunch a couple days a week. Try to limit dinners out to the weekend only (Friday/Saturday night) and cook meals at home during the rest of the week.
Savings - If you aren't "paying yourself first," you need to make a plan to save some money automatically every month from your paycheck in a retirement account or taxable account. "Hiding" the money from yourself removes the temptation to spend the money and helps reduce impulse spending.
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