While it is admirable to make a thousand dollars per month, it can be just as beneficial to save a thousand dollars.Have you ever really thought about how much you could save if you took a real look at your current bills?
About a year ago, I figured I was spending as little as possible, but I wasn’t budgeting my income or expenses at the time. Starting in January, I decided to set a monstrous goal for myself: paying off my house loan. This would require me to increase my income and spend very little on expenses. It was time for me to figure out if there was anywhere I could save.
The Phone Bill
As I was setting up my January budget, I realized that my phone bill was $85 a month. Suddenly (since I actually had a goal to pay off that massive debt), this bill seemed a little steep to me. I mean, $85 a month? I have friends that only pay $45 a month. Sure, they get a little less service coverage, but that’s a difference of $40! So I called Verizon to see what they could do for me. In a matter of minutes, they discovered that I was a very loyal customer and would drop my rate from $85 down to $60. This simple call saved me over $200 a year.
The Insurance Bill
Insurance is another expense that we can easily lose track of. We pay it for so many months and years that it just becomes second nature. Plus, these days our bills are all automated, so unless we actually monitor them each month, they could increase without us even realizing it.
My car insurance was about $450 every 6 months for my crappy Honda Civic, and it always seemed to be increasing. Sure enough, I checked around and could find it elsewhere for $310. This was another solid $240 savings that was pretty simple to get.
The next bill I started looking into was the water bill. It used to be about $20 a month, but recently it had been inching up to $40 and sometimes $50. What is the reason for this? My showers haven’t been longer, and I certainly wasn’t watering the lawn in the winter time. When I stopped to think about it, I realized that my toilets had been leaking. I bought a $10 kit (which includes every single piece in the tank) for both of them and no longer have wasted water! $20 a month has been saved. Yup, that’s antoher $240 saved for the year.
I am not a huge out-to-eat guy, but as a single, my food bill still creeped up above $300 a month at times. When I really buckled down and only bought the food that I needed, and also only purchased from the discount food store (like Aldi), I brought my food bill down to $200 a month. This simple change is saving me over $1,200 a year! Incredible.
Work on Your Savings
Sure, making extra money is exciting, but if you do not have the discipline to save money it really won’t make any difference. Do your best to make a budget and follow it for three months. I bet that you will discover many unnecessary expenses like I did. Who knows – maybe you could save thousands of dollars too!