5 Things You Are Probably Paying Too Much For… And What You Can Do

The key to successful money management is to squeeze the most value out of each dollar you earn.  Even if you currently track your expenses, you can always find new ways to cut costs, save money, and improve your lifestyle. In some cases, without even realizing it, you might be paying too much for your monthly bills and other expenses. The following list contains five things that you probably pay too much for.

Auto Insurance

Often, insurance companies will offer extra low premiums to entice new customers and then if you are lucky they will keep their rates the same. But more likely they will start to creep up. Some companies boast that they offer discounts for good drivers and longtime customers but usually this isn’t the case. More likely, the longer you are a customer the more you will pay. You probably shopped around when you first bought your vehicle insurance, but you should also shop for price quotes before renewing your coverage. A few minutes spent every year either online or on the telephone could save you a lot of money.

Money Transfers

If you have relatives living overseas, are planning a wedding abroad, or have things like school fees or utility expenses that need to be paid abroad, you are probably paying too much in the form of unfavorable exchange rates and transfer fees. Just a few years ago you didn’t have much choice in how to send money abroad. You went to your bank or credit union and got a wire transfer. These days there are new services popping up that are competing to help you cut those costs so it pays to compare.  Sharemoney.com posts their exchange rates and compares them with competing services.

Television

Cable and satellite television companies love to sell bundles that include premium movie channels and hundreds of others at a flat monthly rate. Although you can get cheap introductory rates for most services, you eventually end up paying too much for television. Reduce your television expense by replacing your cable or satellite TV service with a high-definition antenna that lets you watch broadcast channels and streaming content service such as Netflix that lets you watch movies and television shows over the Internet.

Mobile Phone Service

If you have a smartphone, you have joined millions of people who have grown accustomed to having instant access to social media, email, text messaging, navigation, and other services. You probably have also become accustomed to paying too much for your mobile phone service. These days mobile service providers have made a big deal about cutting rates and doing away with service contracts but will that actually save you money? The typical smart phone these days will cost you an extra $25/month for 24 months.  That’s a whopping $600! Even a basic smart phone will cost you $8 per month which doesn’t sound like much until you realize that, that is still almost $200. Consider keeping your phone after it’s paid for or go back to a regular phone that doesn’t require expensive data plans.

Health Insurance

In the U.S., everyone must have health insurance coverage, but you don’t have to pay too much for it. Spend some time reviewing your current policy and see how much of your coverage you actually use. If you don’t have chronic health problems or many prescriptions, consider buying a policy that has higher deductibles, higher co-pays or both.

Saving money can start with simple things like taking a look at how you can cut back on current spending. These tips can help ensure that you aren’t overpaying for necessities.