A great way to save is to be a disciplined spender and only make necessary new purchases. However, just because you already have an expense doesn’t mean you shouldn’t look to cut it back a little to create extra savings. In fact, you should make reassessing your ‘fixed costs’ an annual event to ensure you’re still getting good value.
Before you start gather all expenses together and work out how much each one cost you either per year or month.
As a start you should look at these top 10 expenses
- Home loan
- Credit cards
- Electricity and gas bill
- Health insurance
- Car insurance
- Home and contents insurance
- Mobile phone bills
- Home phone and internet bills
- Personal Loans
Give yourself a bit of time for research and phone calls and you can make significant savings over the year. Allocate a ½ day to gather information and make phone calls. Make yourself a cup of tea, get in a comfortable position and get started.
Treat it like a business
Get multiple quotes before you sign up for a service. You don’t have to go with the cheapest option but it should give you an idea of what the market is charging. It also gives you a tool to negotiate a lower price with your preferred provider.
Make sure you are comparing apples with apples
Different businesses will use different terms for things like fees. It’s no good to save on the upfront cost of a new service if you pay extra through ongoing fees. Compare the full price of each service over a year, then divide that down into a monthly cost.
Before you go ask for a discount
If you have found a better price for one of your expenses but, are happy with your current provider, ask if they are willing to price match the other price. With a bit of persistence, you should be able to get something from them. If you’re paying the standard interest rate on your home loan why not take a photo of an ad from a budget online lender and ask your bank to match their rate.
Packaging similar products together can be a way to save on the overall cost. Insurance companies will generally give you a discount if you have multiple products with them. As long as each policy is competitively priced having all your policies with one company will save you money. Just make sure you don’t end up paying more for services that you never wanted in the first place, like a home phone/internet package if you never use a home phone.
It costs businesses lots of money to get new customers so they would rather spend a little to keep the ones they already have. However, they are never going to offer you a discount, so do some research then demand one from them.
Allocate a ½ day to gather information and make phone calls. Make yourself a cup of tea, get in a comfortable position and get started.