Tough Economy Survival Guide: Household Expenses

Keeping your household expenses at a minimum is a goal during any period of time.  Yet, when the economy is facing hard times, you actually may find that you can cut expenses ever more.   Why?  Because competition for your business is very high.   Every business you deal with now, or may deal with going forward, it looking to keep their bottom line above the line.   Some of the ways they do that is by offering deals and lowering prices.

Here are the most household budget items that you may be able to lower during this time:

Insurance

No matter if it’s auto, health, homeowners, or life insurance, insurance companies are battling for business.   For example, one auto insurance company is offering the “vanishing deductible” by lowering your deductible by $100 every year that you don’t have an accident.   Another example is homeowners insurance.   With house prices dropping, the coverage you needed two years ago is not what you need now.   Find out the value of your home (and you can do this on a web site such as www.Zillow.com) and then gather new quotes.

Banking Fees

If you’re paying a monthly fee for your checking or savings account, call you bank and ask them to give you a free account.  It’s not hard to find and you can usually get this just by asking.   In addition, find out what kinds of incentives they are offering if you open a new account.   Just a month ago, I received a coupon for $150 if I opened a new account with a major bank.   I would get the $150 just for having my paycheck deposited into this account and leave the account open for 90 days.  That’s a no brainer in my book!

Cable/Satellite TV

This ones a tougher nut to crack.   If you’re in the middle of a contract with your provider, the best you can hope for it to get a discounted rate.   It never hurts to call and ask.   However, if you are locked into a contract, shop around.   With my satellite TV provider, if I was a new customer, I’d be paying 75% less for the same service I have now.   By all means, if your finances have been hit by unemployment, call and ask for a hardship modification.   Be insistent and take your request up the chain of command if you have too.  

Cell Phone

Well, there are so many ways you can go with this.  First, go to your providers web site and see what plans they now offer.  Plans are changing all the time and you may find that the there’s a better deal than the one you’re currently in.  Most providers will not charge you a penalty for changing to a different plan.   The big ticket changes are cutting down on your calls and/or text messages.   My husband and I kept going over on our bill by 200 minutes a month (at $.45 cents a minute).  Now, I go online every few days to see how many minutes we’ve used.  Plus, I scrutinize my bill with a fine tooth comb.   (Just today, I found that they charged me $5.60 above my fixed monthly fee for no reason.  I’ve sent them off an email!)

Utilities

Start thinking ahead to either winter or summer – which is next.  Then look at our electric and gas bills.   There is quite a bit of competition for your gas business and you can sometimes agree to fixed therm rate for a year.   You pay a little more in the off months, and pay a lot less in the on months.    In the end, it’s still a good deal.   To find out what each of the gas companies in your area is charging, go to Google and type in “natural gas rates [your state]“.   Look for the best deal and get it started today!

These are just a few of the most popular things you can do to cut your household expenses.   Use the Internet to help you do the research, and grab all the deals you can.