Monthly bills are a part of life.
But needing to have certain bills doesn’t mean that we have no voice in how much we pay for the services we use.
You can take an active role in saving more money this year by calling the companies you do business with and asking them to lower your bills.
In this #MoneyTalkMonday, I share a few tips I’ve used that helped me save over an extra $1,000 last year.
Read The Transcript
Most of us are coming into the new year with a goal of saving more money. Now, there are a lot of different ways to accomplish this. But today I'm going to give you a tip that helped me save over $1,000 last year. Here it is. If you haven't in the last six months, call and negotiate the price you pay for your monthly bills and services. Now, let's talk about some of my favorite bills to do this with. Now, one of the best places to start when you're negotiating your monthly bills is your insurance. I have never ever in my adult life, let my home renters or auto insurance renew without making a phone call to ask for a lower premium first. And this is especially if there was an increase from the last term. Now there's nothing fancy about my process. I usually start by gathering three to four new quotes about them. month before the new policy becomes active, that lets me know if the quote I received from my current insurer is a decent one. Or if the quote is just way off base. Then from there, I just call my insurance company and say, Hey, I noticed my premium went up this term, would you explain to me why that is? And once they respond, I just politely explained that my budget can't handle an increase. And then I asked how the agent can help me receive a lower premium. Notice, I don't just say, Hey, can you lower my bill? I asked the agent how they can help me receive a lower premium. And I do this because yes or no questions rarely get you anywhere. And as a matter of fact, most of the time when you ask a yes or no question, people are gonna say no. So then from there, I just sit quietly while they do their research, and then respond with what they can do. Now, sometimes the original quote is the best they can do and sometimes I Get a new quote with a better rate. And if I need to switch insurance companies, then I can do that. But before I hang up with any of them, I always ask the agent to verify with me that I'm receiving all of the discounts that I may be eligible for. And then we walk through all of the little discounts that they offer. I know sometimes you can get a huge discount for paying the entire premium all at one time, which is what we do. So if you have the cash ask about that. And I'll tell you the most I've saved with this insurance negotiation strategy was right at about $600 over the course of a year. If you haven't done this in the last 12 months, be sure to do it this month. And the reason I say that for insurance is because insurance is not something you usually have to wait until the renewal date for to change providers. I will be sure to link to one of my favorite insurance brokers in the show notes which you can find at winning to wealth.com slash MTM five. Another service I do this with this internet Now I don't have cable. But if you do this works for that as well. Internet and cable are easy because most internet and cable providers send you those little mailers with the new customer rates on them. So when I get those I call my current provider and I let them know that the current price that I'm paying is stretching my budget a little bit. And then I asked what offers they have that both fit my needs, and can save me money. And usually what happens is they just list the offers that you can find on the website. So from there, I asked what other offers they have? Again, I'm not asking do they have other offers? So they can say no, I asked what other offers they have. Sometimes they may just tell you, hey, we don't have any other offers. But there are times where there are other offers that really aren't listed anywhere. And if I get a great rate, then I'm satisfied because I never really want to switch providers because it can be a pain in the butt. But if I'm not excited about the offers that I get and the price that I'm going to pay, then I'll call the Other companies and get more details about their offers before I ever cancel with my existing provider. So once I have all the Intel from the people that sent out the little mail or whatever company that was, I'll call my existing provider back and I give that agent another chance to win my business. If I'm not satisfied again, then I asked to be transferred to the cancellation department, if they have one. Then when I get to this department or person, or whatever they have, I mentioned how I really liked the service. And that's where I bring up the better offer from their competitor if you haven't already, and then I asked, you know what they can offer that's better than or comparable to that offered that will keep me as a customer. And again, either I'll get a better rate or if I'm not a fan of the offers, I'll just cancel and make the switch. And I'll tell you, you can actually use that same negotiation tactic with your cell phone provider to but with the cell phone provider, I also recommend that you log into your account And check your usage to ensure that you're in the right plan. cellphone carriers come out with new plans all the time, and you may be in one that was good a couple years ago, but that isn't the best for your lifestyle today. Now, there are two things I never want to do with my cell phone plan. The first thing is pay for tons of data in services that I never use. And the second is pay overage fees for anything because I didn't have the right plan. So definitely verify that you're not paying overage fees for overuse, and that you're not paying for stuff that you never use. And you need to make sure that's the case before you make the next payment. Now if you have an idea for another carrier and you get an offer for a significant cost savings from that carrier, don't just let an early cancellation fee stop you do the math to see if you can actually come out ahead. Just last year I paid like $500 in cancellation fees to save $100 a month on a family plan that we now share with my cousin and his wife. So a year later, we save 1200 dollars, which makes the $500 we spent worth it. And now for you renters that are actually quality renters that take care of the property and pay your bills on time and all that stuff. Always negotiate any rent increases. And this is especially if you live in one of those apartments owned by a big large company. Now sometimes you can get the increase dropped all together. And other times you can negotiate something like a fresh coat of paint or some other upgrades, especially if the apartment complex is remodeling the units already. So those are just a few of the places that I like to negotiate lower payments and save money this year. There are tons more I recommend you look at your spending plan and you make phone calls to the companies that you make on time monthly payments to and just ask because at the end of the day, the worst they can say is no. Now if the thought of Making these phone calls just gives you extreme anxiety, you can actually hire out a company to do this for you. They usually don't charge anything up front for this, but they do often take a percentage of whatever they save you. So if they negotiate your cable bill down $40 a month, they'll charge you a few bucks have that for their surface. Again, it's a fantastic option because I know some people get really anxious when they're thinking about making these types of phone calls. So again, check that out, you can find that in the show notes at winning to wealth comm slash Episode Five. Again, I'll link to all of those in the show notes at winning to wealth comm slash Mt m five. Finally as we wrap this up, I want to say I'd love it if you'd share this episode on social media as it doesn't only help me by spreading the word about the show, but it also helps your family and your friends who are looking to be better with money this year. It helps them to find the tools that they need to succeed. So thanks again for tuning in to another episode of money talk Monday. We'll talk soon
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