Prices for everything have gone up and inflation looks like it isn’t coming down anytime soon.
So, how are you finding ways to save money?
Small spending cuts can go a long way, especially when expenses are constantly increasing. One easy thing to do is to start by eliminating unnecessary recurring bills and subscriptions.
Your extra money going towards unnecessary costs could be used to cover the increased prices of essential items like groceries, gas and utilities. And it can allow for a quicker pay-down of high-interest debt.
Here are seven common types of bills you’re paying that probably provide little value to you.
1. Cable/Satellite TV
Most people now stream. Even my parents stream their favorite shows online through cheaper services like Netflix, Hulu and Amazon Prime now. Seriously, when was the last time you actually watched The Weather Channel, SundanceTV or Smithsonian Channel?
Monthly cable bills of $100+ are just not worth it when you can just watch Youtube.
2. Home phone line
Having a landline has become an outdated expense. Unless you’re in an area with unreliable cell service, a wired phone brings little benefit over a mobile device. People keep their landline out of habit or because it’s bundled with a cable or internet package.
Ditch the landline and save $30–50 each month.
3. Print newspaper subscriptions
Newspaper reading is a daily ritual quickly becoming a thing of the past. According to the Pew Research Center, weekday print circulation has plummeted by over 60% in the last two decades. People today get their news with apps, and you can read or listen to top stories anytime, anywhere.
Many local papers charge over $300 annually for 7-day delivery. Compare this to digital subscriptions, which provide the same content at a much lower cost. Besides, what exactly are you supposed to do with all those stacks of yesterday’s newspapers?
4. Extra streaming services
Do you really need subscriptions to 5–6 different platforms?
Chances are, some services provide value for just a month or two as new content comes and goes. The reality is, most households don’t take full advantage of the streaming services’ extensive content libraries.
I’ll bet you can reduce unnecessary overlap and keep just 1–2 key services without suffering. Rather than paying $15–20 monthly for several overlapping services, concentrate your budget on the one or two platforms truly delivering the most hours of use.
5. Unused Insurance Policies
A lot of people pay for insurance they don’t need. Re-evaluate your auto insurance needs as your vehicle ages. Many policies will allow you to switch to basic liability-only coverage, which significantly lowers your rates for an older car.
Also, stop paying for full-coverage auto insurance if your vehicle is over 15 years old because it’s unlikely your car’s value is worth paying for full coverage.
Other types of insurance worth examining include life insurance policies purchased years ago. For instance, if your policy was purchased ten or more years ago when you had young children, it may be time to convert to a paid-up policy. Your children have grown, and your financial obligations have changed.
Review your homeowners or renters insurance annually to eliminate duplication. You may be paying for add-ons every year without considering if you actually need roof replacement coverage or identity theft protection included in the policy.
6. Storage units
Americans love to shop for things they don’t need and then rent a storage unit to store them away. But do you really need to keep paying $60+ per month to store items you’ll never use?
Instead, throw a garage sale or donate your junk to reduce clutter and save on those monthly storage fees.
7. Membership fees
Whether it’s a gym, warehouse store, or golf club membership—consider if the annual or monthly fee provides value equal to the fee you shell out.
Can you remember the last time you actually went to your gym to work or played a full round of golf?
With all the monthly expenses you’ll save by canceling these unnecessary bills, think about what you could do with these savings—such as paying down debt, investing it, or funding your retirement.
