Cutting Recurring Costs to Save Money 44 Comments
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Recurring monthly costs can add up quickly without you noticing. They can chip in to your income, leaving you with less to squirrel away for a rainy day!
Just by taking a look at your recurring monthly costs and learning where to make cuts can lead to you saving a significant amount of money over the year!
Letâs start by looking at some examples of recurring costs, and ways to lower them:
- Cell/mobile phone contracts: Are you on the best tariff for your usage or are you paying for more features than youâre using? Some phone companies will offer you a review of your contract, simply call them up to check. If youâre not using all of your minutes and calls, you might be able to switch to a lower monthly package.
- Gym memberships: If youâre not getting your moneyâs worth at the gym, cancel your membership and start playing sports like softball for exercise. Rather than a recurring fee, you have a one time investment for equipment. There are plenty of free apps and MP3s available to help you get up and active, and youâll save the hefty monthly gym membership fee!
- Entertainment: Do you pay for Sky, cable TV or a DVD rental service (such as Netflix, PushPlay, Blockbuster, etc?) Do you spend a lot on the Cinema, visiting the theatre or going to gigs each month? Review how much youâre spending on entertainment per month and decide if cutbacks can be made. Perhaps limit your entertainment budget and opt for cheaper activities instead.
- Eating out: Eating meals out, ordering takeaways and buying lunch on the go will take a chunk out of your monthly income. Track just how much youâre spending on food alongside your weekly grocery shop and youâll be surprised! Certainly think about making cutbacks â itâll be better for your health too!
- Groceries: Do you find yourself taking additional trips to the supermarket midweek to âtop upâ your weekly shop? If so, keep track of how much youâre spending and look at ways to cut down â the easiest way is by planning meals ahead, cooking in bulk and then freezing additional meals for another week.
- Internet: Are you with the cheapest provider on the best tariff for your internet usage? It might even be worth checking out if youâre eligible for any loyalty discounts too.
- Miscellaneous subscriptions: Sift through your bank statements to check for old subscriptions youâre paying, which youâve forgotten about! These can sneak up on the best of us! Everything from old mobile phone insurance contracts to recurring bank account charges, software subscriptions, magazine subscriptions and hobby websites weâve joined! Check your account and cancel any payment thatâs now redundant.
A few bonus tips for making savings…
- Set a monthly budget and STICK TO IT: If youâre trying to cut down on unnecessary costs, set a monthly budget and stick to it. This will stop you being tempted to splurge the money youâre setting aside for savings.
- Donât be scared to borrow: If you need to take out a loan to cover an emergency payment, donât beat yourself up about it. Think about what type of loan is best for your needs. If you only need to bridge a gap until payday and are confident you can pay the money back, a short term loan (for example, from Wonga Canada) can often be better than a more long term loan, even though the interest seems higher, you can actually end up paying less.
- Donât get suckered in by deals: Be wary of signing up for any deal or offer because it looks too good to be true. Often it is! For example, âbuy one get one half priceâ deals mean youâll spend extra on buying a âbargainâ second item, but ask yourself âdo I really need it?â
- Extra reading: Learn how cutting taxes and refinancing mortgages and can help you save money by keeping yourself informed and updated on any new reforms and tips.