Do you feel like you are in over your head with your expenses and you are looking to make some small changes to your financial life there are a few things you can do?
If you know about businesses you know that most businesses have overhead expenses. Business overhead expenses are the costs to keep the business running in terms of renting space, paying for the internet and phones, and salaries, etc.
We as consumers have overhead expenses that we can reduce. While you do not and are not expected to live like a pauper there are things that you can do to reduce your personal overhead expenses and save you money.
1. Refinance a car loan. Most of us are familiar with the concept of refinancing a home loan but you can also refinance a car loan. This would lower the overall interest rate and the amount of money you pay for the car. Look to see if there is a credit union that could give you a more competitive rate for a car loan.
2. Renegotiate a rental agreement. If you are a tenant you can renegotiate or attempt to renegotiate the terms of your rental agreement by asking the apartment complex to not increase the rent. You could and should always look for comparable apartments that may rent their units for less. When I rented my last apartment before buying my current house, I tried to get the unit that wasn’t renovated because I didn’t have to pay market rate rent. I also tried to find apartments that were not renovated as a whole. My mission was to find something that wasn’t too expensive so that I could continue to save money.
3. Conduct an annual review of your car insurance. Too many people stay with the same insurance company without trying to find a less expensive company. You may also work for an employer that provides you a discount or other incentives for car insurance.
4. Consider switching to a different utility company, if you can. Gas and electric companies have competitive prices and will send out information to households to entice the household to make a switch. have two different electricity companies that can provide services to me. Every year when I get a mailing from the two main utility companies in my city, I compare what their rates are and I have switched which has ended up saving me in the past.
5. Switch Cell Phone Providers. When it’s time for my contract to be renewed for my cell phone I do compare the rate I pay to those of other companies. Currently, I have unlimited everything so I have not switched to another company. However, I pay attention to the commercials that let me know what cell phone services are going for with another company. Also, hang onto your cell phone longer. You do NOT have to renew every two years per your contract. Changing your service/plan can also mean changing the phone which is a super huge expense even if you lease it. It may seem like you are “saving” money by leasing the phone but you have just added more debt/expenses just to get a newer phone.
6. Search for cheaper internet service. I currently have Comcast as my internet provider. I prefer Google Fiber however Google Fiber is not available where I am. When I had Google Fiber I had internet service and HBO for the less than what I paid just for the internet with Comcast.
7. Cut cable. I do not have cable. I have SET TV and I can get a ton of channels for the tune of $20 per month. Set TV let’s you purchase on a monthly basis or quarterly with a slight discount. https://www.setvnow.com/I have NO complaints. I can watch all the tv shows I love live as well as there is an on demand feature.
8. Work near or from home. There is really nothing you can do about where you work especially if that is how you support yourself solely. And there is no guarantee that you can get a home that allows you to work from home or near home but these jobs do exist. If you can get a job that you can work from home that is awesome. Or if you are like me, and live within five miles from your home, that is great, too. Working from home saves me a lot of money in that 1. I don’t spend a lot of money in gas and 2. I don’t and am not tempted to buy breakfast, lunch and snacks while at work.
9. Downsize. There is a TRUE power in downsizing. Downsizing your living expenses will save money by reducing your overall rent/mortgage expenses as well as costs to maintain the house/ apartment. This can also be said of cars. My Honda Accord is much cheaper to maintain than a BMW. The cost of one tire for a BMW would be the cost of me getting four tires on my vehicle. I can’t imagine spending a couple of THOUSAND dollars on tires.
10. Assess your health insurance. Open enrollment happens annually. Unfortunately, we tend to not pay attention to our health care costs. Too many people focus on the cost of office visits or prescriptions over what they may have to pay for a major procedure.
Five years ago I had a MAJOR procedure done. When I knew this procedure was going to be necessary, I reviewed my employer’s options and looked to see if I could find something somewhat comparable to what I already had but would also decrease my out of pocket expenses. Coupled with my employer’s flexible spending account, I made a very smart financial decision and saved a ton of money! I even was able to get one portion of the procedure covered by health insurance provider! That alone saved me $800!
There are tons of ways that you can reduce your own personal overhead expenses. Without cheating yourself ask yourself CAN I GET THIS CHEAPER??? In the age of the internet there is no reason that you should not do a cost analysis and see if there are quality cheaper products/services that can keep more money in your pocket.