Top 5 monthly recurring expenses to save money on
A large portion of the average persons budget is eaten up by recurring expenses each month. Things like: rent/mortgage payments, property taxes, memberships, condo fees insurance, internet, utilities, and phone bills. Reducing the cost of any one of these has a significant benefit to your budget. You save that money over and over again, every single month. You can do this by staying up-to-date on promotions, shopping around and, negotiating the prices. Doing this allows you to save a lot of money without even changing your lifestyle. You can apply this to most expenses, monthly or not, but the recurring nature of monthly expenses make it much more worth while. The Top 5 recurring payments you can save money on are:
- T.V plans
- Cell phone plans
The biggest way to save money on your rent or mortgage is by shopping around. For renting, this involves watching the rental market where you plan on renting and learning the prices. If you know what you should pay for something, you won’t overpay for it. For mortgages, shopping around involves talking to different banks and mortgage brokers to try and get the best rate you can. On a $200,000 mortgage, every 0.01% you can save on your mortgage rate, saves you ~$1 a month. When shopping around, you could easily come across a 0.3% spread – that means you could save $30 a month on a $200,000 mortgage! It’s not much, but it adds up. On top of shopping for your rent and mortgage, these prices are usually negotiable as well. Unless you are in a very hot rental market or the landlord is already priced quite low, most would accept $25 a month (or more if you are a good negotiator) lower rent without fighting it too much if you look like a good tenant. That means showing up to the rental viewing on time, dress nice and be respectful. If you are showing up in a vehicle, make sure its clean and looks well taken care of. When negotiating mortgages, pick the best rate you found and see if you can knock them down another couple 0.01%. Again, its not much but it all helps. For convenience sake, if you find a better rate for a mortgage but would really rather have the mortgage with the rest of your banking, show them the better rate and they will usually match it.
After reading this article, did you take the initiative to try and low your recurring monthly expenses? Tell us how you did! We’d love to know what you tried and if/how much you ended up saving!