Tips like these helped us pay off $127K in debt. You can read our story in Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After.
Here’s my little Happy New Year gift to you. Each day in January, I’ll bring you a simple, concrete and easy to put in place tip to fuel your efforts to Save Money, Pay Off Debt, and Be Awesome this year. Looking for a quick plan? Well this might not to be the right place for you. Most things down well take time. But that doesn’t mean you can’t begin to implement systems in your life that will help you achieve your goals. I’ve said it many, many times before. Paying off debt isn’t complex. It’s just not easy. You have to punch the clock daily and do the hard work. Here’s another way to make that happen.
Day 28: STREAMLINE YOUR BILLS
It’s easy to feel helpless when you are paying off debt. It’s easy to see what everyone else has – and you don’t. It’s easy to see what everyone else is doing – and you’re not. Can I just empower you for a few minutes?
YOU are in charge. You spend the money in your house. You make the choices. No one else is controlling you like a robot. “Life” doesn’t control you. You have autonomy to live your life.
Even expenses that “seem” static might be up for debate. As you begin your journey of slaying debt, consider every single penny you spend every month that might seem like a “fixed” expense. The amount might be a little more debatable than you realize. I like to call this “streamlining” your bills. Utility bills in particular fall into this category that might be more negotiable than you realized.
Phone
I wouldn’t advise you to function without a phone. While we live frugally, I’m not a prairie girl and I want to have a way for the school to contact me in case one of the Princesses breaks an arm. You may consider eliminating a landline if you don’t already. You might also want to scale back your plan. For years, I did not have a smart phone plan even though my job is conducted primarily online. I used an old iPhone that was given to me that I am able to use anywhere there is WiFi (which is becoming frequently more available in plenty of locations). During this time, I rocked a very old phone-phone that has only 450 minutes per month, no texting. The King of Free’s phone is provided through his job. A phone is a luxury. A smart phone is an extreme luxury. If you’re serious about getting out of debt, cutting back in these areas might be wise. If you choose to keep a phone with a plan of sorts, it might be time to call customer service or spend time in the store researching whether or not you have the plan that best fits your needs. If it’s been awhile since you’ve set your phone up, I’m guessing your bill has creeped up over the years. Those numbers are rarely set in stone and with the right individual working with you, you may be able to save much more per month than you realize.
Trash
Your trash/sewage bill usually is dependent upon where you live. Many municipalities contract with only one service provider and your bill is determined at a set rate. However, if you live in a more rural area, you might be able to compare rates between more than one company. Do your homework to determine which will provide the best service at the lowest rate. If recycling is a part of your fee, be sure to maximize the opportunity. Not only will you make the earth a happier place, you’ll purchase fewer trash bags and that’s better for your bottom line.
Water
Leaks cost big bucks. Dripping faucets and running toilets could be doubling your bill (also? they drive me CAH-RAZY pants). While a plumber might be expensive in the short term, you should be able to make up that ground in no time. Or if you’re at all handy, you can manage the repairs yourself. We typically avoid water pipe and main “insurance” plans and rely on our emergency fund instead. If there is a major break, we’ll have the cash to pay for the repair and if there’s not, we hang on to that money for another household issue. For years, we rented a water softener because our home’s prior owner had thought it necessary. When the softener accidentally got switched off, we didn’t notice that big of a difference so decided to cancel the plan. We haven’t missed it at all and that set bill amount was leveraged toward our debt.
Lights & Heat
Obviously you need to be intentional about dialing down the thermostat and turning off your lights on a regular basis. You may also want to be sure to regularly unplug small appliances like toasters, coffee makers, space heaters, your cable box/DVR, and even phone chargers. These can be phantom electricity drainers and cause you to pay a much higher bill (in fact, we had a space heater that nearly doubled our bill one month last year). You may or may not want to check into your providers “budget bill” plan. We choose to use one for our gas heat in particular. While it’s no fun to overpay for the $18 heat bill in August, it also doesn’t sting as much when a $160 one arrives during a chilly January. Carefully examine the plans though, to make sure there are no associated “fees” and make sure you have the best fit for your family’s income. Consider scheduling an energy audit (in Indiana, many companies provide them FREE!) for strategies to best save when it comes to keeping your home warm, well lit, and safe. We received a free shower head & sink nozzles to better manage our water flow, lightbulbs, and plenty of great advice when we did this a few years ago.
Cable
You don’t need cable television or even local television to lead a productive life, friends. I love me some guilty TV time as much as the next gal (Hello Mr. Arrow, you make 40 minutes on the elliptical tick right by), but it’s a want and not a need. For about a year, we functioned on Netflix only ($7.99). We now have both Netflix and local channels thanks to an antennae the King of Free constructed from a 2×4, some washers, coax, and free metal hangers from the laundry mat. It pulls in more than we need. We do have cable internet and just like the phone bill, you can certainly call to negotiate the rate if it’s creeped up over the years. Ask for the “Retention” or “Loyalty” department to get the ball rolling and be kind, but firm when asking for a manager if you get a “no.” The King of Free did this last year and dropped our bill for $20/month for 6 months. Sure, it went back up midyear; however, we put that extra $120 toward paying off our mortgage and believe me, every penny counts. If you do choose cable for your home, be sure to ask for the “Poverty” or “Poor Man’s” package. This gets very basic service, including local channels at a reduced rate without the extras. Asking for a “Basic” package will be much more expensive. Have a child on the National Lunch Program? You might be able to get Comcast Internet for $9.95 per month.
Don’t be satisfied with those monthly bills. See what you can do to streamline the costs, improving upon your bottom line. Determine what is really a need and what is truly a luxury. Then, don’t be afraid to make a different plan if your service provider isn’t willing to nudge. You don’t have to go without power or water, but you do need to think through everything you are spending to ensure you aren’t wasting money that could be used to Kick Debt in the Teeth.
THIS IS INCREDIBLY IMPORTANT: If you are able to save any amount of money per month, you must DO something with what you save. Simply creating more “breathing” room isn’t good enough. Leaving extra dollars in your bank account means that they will be spent. Of course, if you’re paying off debt, throw all of that extra cash toward your smallest of debts. Otherwise, put it toward a particular savings goal. Mark my words, if you’re not intentional with what you save, it will vanish quicker than Girl Scout Cookies on delivery day.
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I’m so looking forward to sharing this month of challenge and inspiration with you. Together, we can show debt who’s boss and give it a swift kick in the teeth this January and throughout the year in 2016. Away we go!
Miss the previous posts? Check out:
- 31 Ways to Kick Debt in the Teeth: BELIEVE
- 31 Ways to Kick Debt in the Teeth: STOP IT
- 31 Ways to Kick Debt in the Teeth: SELL, BABY, SELL
- 31 Ways to Kick Debt in The Teeth: USE CASH
- 31 Ways to Kick Debt in the Teeth: PLAN YOUR MEALS
- 31 Ways to Kick Debt in the Teeth: CHANGE YOUR MIND ABOUT BUDGETING
- 31 Ways to Kick Debt in the Teeth: READ A BOOK
- 31 Ways to Kick Debt in the Teeth: QUIT RESTAURANTS
- 31 Ways to Kick Debt in the Teeth: DREAM ON!
- 31 Ways to Kick Debt in the Teeth: SET LIMITS
- 31 Ways to Kick Debt in the Teeth: COMMUNICATE WITH YOUR SPOUSE
- 31 Ways to Kick Debt in the Teeth: MOVE IT
- 31 Ways to Kick Debt in the Teeth: WORK IT
- 31 Ways to Kick Debt in the Teeth: LEARN TO COUPON
- 31 Ways to Kick Debt in the Teeth: VISUALIZE VICTORY
- 31 Ways to Kick Debt in the Teeth: CHOOSE GREAT FRIENDS
- 31 Ways to Kick Debt in the Teeth: CLEAN YOUR ROOM
- 31 Ways to Kick Debt in the Teeth: EMERGENCY FUNDS
- 31 Ways to Kick Debt in the Teeth: QUIT FUNDRAISERS
- 31 Ways to Kick Debt in the Teeth: STOP FREAKING OUT
- 31 Ways to Kick Debt in the Teeth: DUMP THE PITY PARTY
- 31 Ways to Kick Debt in the Teeth: NO MORE EXCUSES
- 31 Ways to Kick Debt in the Teeth: SHOP AT ALDI
- 31 Ways to Kick Debt in the Teeth: DON’T QUIT
- 31 Ways to Kick Debt in the Teeth: PRAY
- 31 Ways to Kick Debt in the Teeth: KEEP EXCELLENT RECORDS
- 31 Ways to Kick Debt in the Teeth: WORDS YOU SHOULD NEVER SAY
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out Inspiration to Pay Off Debt: 30 Days of Encouragement from the Queen of Free
This post contains an affiliate link. That means when you get a great deal or maybe even something for free, you also help our family pay off our mortgage early. And for that, we royally thank you!
