How To Reduce Your Bill Payments and Save Money

You understand the importance of saving money on a monthly basis but the stress of paying your high bills creates uncertainty. High bill payments could force you to live from pay cheque to pay cheque but there are ways to manage your monthly payments and start saving money.

·         Phone and Utility bills: For your phone and utility bills, call the companies to discuss the possibility of reducing your bill payments. Take a closer look at your phone bill; do you really need 3-way calling or international texting features?  Be aware of how much you’re paying on a monthly basis by monitoring your bills for the next 3 months. Then think about removing the features that you don’t need or use.

·         Cable bill: You spend 8 hours or more at work and you are probably too tired to watch TV when you get home. If his is the case, why are you paying for a premium cable package?  I do advise my clients to take out special channels such as the sports package or HBO. You can save $15 to $20 monthly by eliminating some channels.  

·         Credit Cards and Loans: If you’re paying an annual fee, what are your benefits?  If you are not using the benefit that comes with the fee, I will suggest that you get a credit card without an annual fee.  An average credit card has a 19.99% interest rate but you can call your credit card company to see if they have a credit card with a lower interest rate.  Or look into debt consolidation loans to pay off your credit cards.  

Your car loan is due for renewal yearly, make sure that you negotiate your interest rate rather allowing the loan to auto renew. If your loan is less than a year, how much you’re paying in interest? If your interest rate is higher than 10%, you might want to call your bank to renegotiate the loan after 6 months.

·         Rent payment: How much are you paying in rent on a monthly basis? After you pay your rent and other bills, how much do you have left to save? If your rent is $1300 and over, you can afford a mortgage payment for a $200,000 home (this is just a rough calculation). If your rent is $1300 or more, you might be spending too much on rent. I will advise that you get a place with lower rent payment so that you can start saving for the down payment to buy your own home. Your mortgage payments minus interest will become your equity which is a form of savings for the future.

·         Mortgage payment: You should make your mortgage payment bi-weekly or weekly if you can. The frequency of your payment can help reduce the amount that goes towards interest payment. Any amount saved from interest payment will go towards the equity in your home.

Conclusion

Pay attention to the dollar amount of your monthly bills and look for ways to reduce your payments. Call your service providers to take out the services that you’re paying for but not using.

Feel free to email me at margmortgages@gmail.com or call 780 901 8060 with your money questions