When making a budget, it's important to think about what you want to do with the money you have left over after you've paid for all your needs. And while it's easy to spend less on things like going out to eat and traveling, it might be harder to cut back on things like streaming subscriptions.
The good news is that some of your regular bills and subscriptions can be changed. Here's how often you should look at your bills, how to tell which ones you can negotiate, and the steps you need to take to reach your goal.
When to Look at Your Regular Bills
It's usually a good idea to look over your bills at least once a year. This gives you time to figure out which bills you need to pay and which ones you don't. In some cases, it can also give service providers time to offer different pricing tiers that can work to your advantage.
But you might also want to do a quick check every few months to make sure you're still using all of your subscriptions and memberships. If you pay for cable or a streaming service just in case you want to use it, but you never do, you might want to rethink that recurring cost.
What bills can you talk about?
Some bills really can't be changed, but you may still be able to find ways to save money on them. Here are some common bills you might be able to change or negotiate to save money:
Memberships:
When it comes to memberships, you might not be able to get a better deal. But if you pay yearly instead of monthly, you might be able to save money. Amazon Prime, for example, costs $119 per year or $12.99 per month, which adds up to $155.88 per year. You will save $36.88 if you can pay the annual rate. You could do the same thing with your gym membership, memberships to groups, etc.
Services that you pay to use: As with memberships, it's unlikely that you'll be able to get Netflix, Spotify, and other similar services to charge you less each month. But a lot of these services have different levels that can work to your advantage. For example, Spotify Premium costs $9.99 per month, but you can get a family plan for up to six people for $15.99 per month or just a two-account plan for $12.99 per month if you live with other people.
Utilities:
If you live somewhere where you can choose from multiple energy providers, you may be able to negotiate your utility bills by shopping around and comparing different options. You can also look at your internet, cable, cell phone, and other utility bills for ways to save money by adding lines, bundling services, and more.
Auto insurance:
To make sure you're still getting the best deal, you should shop around and compare rates at least once a year. This is especially important if your situation has changed since you bought your policy. For instance, if you've stopped driving as much, moved, or bought a new car, you might be able to get a better rate somewhere else. In many states, you may be able to get a better rate if you improve your credit score. Credit card bills: If you have credit card debt, you might be able to negotiate a lower interest rate. You might also be able to ask the card issuer to get rid of a fee for a late or returned payment. You could also ask to downgrade your card if it has a high annual fee and you don't use the benefits enough to justify the cost.
When you look at your bills, if you're not sure which ones are negotiable, don't be afraid to contact your service providers and ask.