RoxanneYou have two primary choices when it comes to making your money last longer: First, you can find ways to make more income. And second, you can cut back on your spending.
We won’t focus on ways to increase income in this article. But we will show you how easy it is to cut back on spending without making any real sacrifices.
1. Don’t pay bills over the phone.
Here’s a common scenario that can cost you a few bucks: Your cable bill slipped through the cracks in your car or was sitting under a stack of magazines in your home. You find it one day before it’s due. To avoid late fees, you call the number on the bill and speak to a customer service agent. And to pay the bill on time, you give them your card info.
If Spectrum Cable was your company, that move could have cost you $5, as that’s what they charge to customers who pay one of their agents over the phone. Similarly, Verizon Wireless charges $7 to take your payment by phone, which is why you should pay online, in person, via automated phone service, or by sending in a check.
2. Turn off autopay.
While paying bills to a person over the phone can increase your costs, so can autopay, although in a different way. Studies show that people who use autopay tend to pay up to six percent more on their bills. Why? Because when your money is withdrawn automatically to pay a bill, it can keep you from looking at the bill itself.
Let’s look at how this can lead to an issue with your utility bill. If it’s on autopay and you don’t look at your monthly usage, you may not see that you’re using way too much water or electricity each month. Without that knowledge, you won’t be able to cut back on usage, and you’ll continue paying more than you should.
Also, companies sometimes overcharge or charge you for services you don’t receive. Without looking at the bill, you won’t notice these errors, which is why autopay is best turned off.
3. Use your phone to order takeout.
Do you use an app or a restaurant’s website to order food for takeout or delivery? While those methods may be convenient, they can lead to more expensive bills.
Just think of the last time you ordered food online. You were probably hit with pop-ups on your way to checkout asking if you want to add dessert or take advantage of a deal. If you’re like most, you made those impulse purchases, which made your bill grow. That’s why you’re better off calling the restaurant and placing your order over the phone, as you can skip such temptation.
One survey found that by placing your order by phone, you can save up to $10. If you order takeout or delivery frequently, that $10 savings each time can add up to a significant sum at the end of the year.
