Bills just seem to be never ending sometimes, and the mound of them growing and growing. But, my income seems to stay the same or even be less from time to time. This calls for some creative thinking and better budget planning. Budgets seem to be getting tighter and tighter and mine was no exception, I needed to do some trimming.
I set out on this journey without much enthusiasm because I believed I had already accomplished all the budget cuts I could manage. I was wrong and was surprised at what I discovered. I was soon to find out I missed a simple detail in my budget that lead me to a cache of over $100.
I carefully re-evaluated my utility bill, my medical prescriptions and a host of other expenses.
Because of my budgeting, I pay my auto insurance on a monthly plan. Spreading the bill out seemed like a really good idea at the time. I thought that it was a good way to help with my budget, but in the end it was costing me money, not saving me money.
It sure was great having the payments divided up, I thought that was making the bill affordable, but each month I was being charged $10 as a finance charge and that was included in my bill, so I hadn't really paid attention to it. I would look at my monthly bill when it arrived in the mail and see the amount due and didn't really give it a second thought.
I began to save up for a six month payment on the premium (when my policy renews), eliminating the $10 monthly fee, thus saving me a cool $60. The second-half of the year I followed the same plan, and that rang in for a total year-end savings of $120. All of this was without any changes in coverage.
Even though the monthly pay plan was good in a way, the finance charge I was paying could have been better used . That $120 a year saved was like getting a bonus check.
I'm glad I was able to re-think and re-do my auto insurance premium. Now when I am deciding how to pay bills, I remember the lesson learned from the auto insurance premium monthly finance charge.
Being savvy with my budget gives me peace of mind.
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- Banking & Budgeting