Creative Ways To Find Extra Money in Your Budget
By Joan Honeycutt
As we put away the Christmas decorations and settle in for the winter, we can’t help but take inventory of our finances and plan for the coming year. Whether you call them New Year’s Resolutions or not, you will probably make some plans to achieve goals. Many of us want to become more financially stable and prepared for the future. This is often more easily said than done. Achieving goals like paying down debts or increasing savings requires finding a little extra money in the budget and that is not always easy to do. But getting creative and looking at your spending from a fresh perspective can sometimes help you find extra cash in your monthly spending that can help you achieve your goals. Here are some places to start.
Cancel Memberships or Subscriptions You Don’t Use
Companies love to sell subscriptions because they know that buyers who are gung-ho on their service or product at the onset may soon lose interest. Yet the subscription continues even after the interest wanes. Common subscriptions include gym memberships, magazine subscriptions, or online music or movie services. For each of your monthly subscriptions, you should take a look at how much you are paying and how much you are using it. Are there subscriptions or services that you hardly use? Then cancel them and apply that money elsewhere.
Assess Your Cell Phone and Internet Contracts
Twenty-five years ago we didn’t even have cell phones or home internet service. Today they are indispensable to many of us. However, there are many different providers of cell phone and internet service, offering a wide range of plans. Some providers will even offer incentives for new customers. Look into the offerings and evaluate your own needs. You may be able to switch plans or companies and save on the monthly cost.
Watch Your Cable Bill
For the most part there is not much you can do to affect utility costs. However, your cable bill is one utility cost that can be slashed or even done away with entirely. The cost of cable has grown over the past years, but choices have increased as well. You may be able to reduce the number of channels and reduce your bill as well. The number of streaming or ‘cord cutting’ options have grown and services like Sling TV, Hulu with Live TV, or YouTube TV offer cable channels at lower costs and could potentially help you save money and sever your ties to traditional cable altogether.
Keep an Eye on Your Fees
We usually don’t account for fees, such as late fees, on our budgets, but they can be costly. The good news is that many fees can be avoided by paying your bills on time. If this is difficult for you, online or mobile BillPay can be helpful. By scheduling your bills to pay in advance, you can avoid late fees that result from forgetting to pay on time. Keeping these fees minimal can give you more margin in your budget.
Refinance Your Debts
Finally, if you have substantial debts, you may be paying significant amounts of interest on those debts. Often there are ways to reduce the interest rates on those debts, thereby reducing the amount owed each month. You can start by talking to the credit card companies or other lenders that hold your debt. They may be willing to reduce your interest rate. Alternatively, you might also consider moving your debt to another credit card or lender.
It’s a new year and a good time to get your finances in order. Hopefully, these suggestions will get you thinking about ways you can find extra money in your budget and use that money to work toward achieving your financial goals. Federated Bank is ready to partner with you and help you in any way we can. See one of our helpful associates or managers with any questions or needs you may have.
