How To Save Money By Slashing Your Bills
Slicing your spending is the initial step for you to take control of your finances and eventually become debt-free. However, there are bills that are perceived to be essential, making it hard for us to consider reducing them.
Besides, you already realized that every dollar is important as it can be added to your debt payments to shorten the length of your indebtedness.
In this article, we’re going to tackle the 3 R’s and the ways on how you can effectively negotiate and manage your bills. For sure, the 3 R’s in recycling are not new to you. These are reduce, re-use, recycle and recycle. These 3 R’s can be applied in terms of your bills in a different approach but most likely the same idea.
Furthermore, before considering these three concepts, you have to evaluate where you stand. In this case, you have to write down all your bills which include, insurance, cable, utilities, cell phone bills, your subscriptions, memberships in the gym or yoga class and all others. Apart from this, you also have to include all your debts.
3 R’s To Negotiate Discounts or Manage Your Bills
The following concept will help you better control your finances as you focus on considering frugality in terms of your expenses. It can help you manage stretch your personal and family budget to suffice your other needs. Besides, as soon as you’re able to free some money, you can use the spare amount to either save or invest for your retirement plans.
R #1: Remove
If you get the chance to settle your entire bill why not do it. It doesn’t make sense to pay approximately 20% of your bills when you have the chance to pay it off in full. The idea is to eliminate what you can to free up some money every month, which you can use to start building your emergency fund or saving for retirement.
R #2: Reduce
The next step is to go over your bills and determine which areas cost the most down to the least. This has to include all the essentials and non-essential expenses. After this, try to scrutinize whether you can enjoy the same benefits from the competitors at a much lower rate.
For instance, if you’re paying $60 each month for your cable plan, you can do some research and find out f the competitor is charging a much lower rate for the same,e plan.
On the other hand, in terms of your credit card interest rates, you can follow some tips on how to lower your credit card interest rates to reduce your monthly payments.
Generally, you cannot get your desired result the first you call, but calling after a day or two might favor you as another representative might be more willing to extend their help.
R #3: Replace
If you can boldly explain the proposition to your provider and let them now that a competitor offers a much lower rate. In fact, you can ask them whether they can offer you a better deal from what the competitor is offering you. Sometimes, if you verbalize of canceling your service, you might potentially get a discount. However, if not, you should also be prepared to leave and switch to the ones where you can get better deals to save more money.
Do Your Math
Removing some of your bills which you can live without, or switching to better alternatives, can help you reduced your expenses each month. So, after you’ve reduced all your bills, you can add the amount to what you can potentially save. As you out this in effect, you should have a growing dollar setting on your savings account. Thus, all you need now is to allocate it towards your contribution to RRSP or debt payments or put it up on your emergency fund.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.