New to Live Richer Challenge: The Fundamentals? Learn more about it HERE.
Week 2: Budgeting & Saving
Today’s Easy Financial Task: Reduce your spending
How to Rock This Task:
- Take out your Money List (yesterday’s task)
- Call the providers of the services you pay for on your Money List and ask for a discount
- Commit to saving on other expenses from your Money List
- Update your Money List with your new savings by filling out the REDUCED MONTHLY AMOUNT column
Now that you finally have a Money List (budget), it’s time to find some savings.
For today’s task, take out your Money List and go line item by line item and decide how much money you think you can squeeze from things like groceries, grooming, entertainment, eating out, transportation etc. Remember, no amount is too small.
Then, call the service providers on your list, like your car insurance, lenders, cable, utilities, cell phone companies etc. and ask them for a discount. Yup! I said it. Ask them if you can pay less…
A Success Story:
One of my clients asked her car insurance company for a discount and was able to save $450/month! How? Apparently her insurance company had all of these discounts that they never applied to the multiple cars on her account. She had been with them for 10+ years and had never asked. When she said she was going to leave them for another company, they “magically” found the discounts.
You may not save as much as she did, but you will likely be able to save something and that’s awesome too.
Feeling nervous about making this type of call? No worries, here’s a script to help you.
“Hello, my name is _________________ and I’ve been a loyal customer for _____ years. I was reviewing my bill from your agency and due to financial constraints, I’m not able to continue paying this amount. I want to remain a customer; is there something you can do to help me? “
- Be pleasant. I cannot stress this enough. The person on the phone has way more power than you know. They are able to do a lot for you, and will only do so based upon how you treat them. So be nice. Ask how their day is going; say thank you and that you appreciate their help, etc.
- Be persistent. Just because one person says no, that doesn’t mean the next one will. Hang up and try again.
- Do a little research. Find out some of their competitors’ rates and use that politely against them. That’s how my client was able to save $450/month after a phone call to her car insurance company.
- Be prepared to leave. If you really can’t afford the service any longer, you might have to cancel it. If you keep getting no’s, ask to be transferred to their Retention Department.
The Retention Department aka the Let’s Make a Deal Department is the service provider’s last chance to offer you some help. If they don’t, you may have to let them go. I canceled my cable several years ago after getting too many no’s. It was the best decision because now I use that money to go on vacations instead.
Don’t forget to update yesterday’s Money List with your new savings by filling out the REDUCED MONTHLY AMOUNT column. While you have your Money List out, review each expense listed & ask yourself how you can save. Look at each line item and if there no room for savings move on; if you think you can save, write the new monthly amount you’re committed to saving in the REDUCED MONTHLY AMOUNT column (the 3rd column) on your Money List.
Extra Tip Alert!!
Here’s a tip to squeeze even more money for savings…
Earn cash back when you shop online. I use Ebates for cash back and love it.
It’s free, no credit card required to earn. Ebates gives up to 40% back in cold-hard cash on things you need to buy anyway.
For example, I use GoDaddy for web services. I need to spend this money in order to keep my business up and running. Ebates gives me cash back for this spending. Cha-ching.
Here’s an example of the first month I used Ebates religiously for online purchases:
Now, every time I shop online I check Ebates first to see if there’s a cash back opportunity. You can, too! Then put this extra money into your savings.
Click this link to sign up for Ebates: http://thebudgetnistablog.com/ebates. On the sign-up page it’ll ask if you were referred by anyone. Let them know I sent you!
Type in my email TheBudgetnista@gmail.com (make sure to spell The Budgetnista right).
For the inside scoop on all things Ebates make sure to check out this post, too: http://thebudgetnistablog.com/2015/cash-back-ebates/
Share your savings success stories with us below in the comments! You can find me here:
Facebook: The Budgetnista
Private Forum: Dream Catchers : LIVE RICHER,
(If you’re not a member of the Dream Catchers forum yet, first go HERE to fill out the questionnaire before requesting to join.)
Sharing is caring. Your tweet may inspire someone else, so tweet away….Today I am actively working toward reducing my spending. Day 10 #LIVERICHERChallenge Click To Tweet
My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.
What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisas. I feel protective over you and your financial journey.
The products/services mentioned in this post pass my Lisa Rule. Yes, I’m an affiliate, but I would not recommend a product or service that I didn’t believe was helpful and useful.
*** Have you just started the challenge & want to catch-up, or just want to work through the LIVE RICHER Challenge in a workbook as well? You can get it here: LIVE RICHER Challenge Book ***
Like this post? Then you'll love these...
- affordable living
- ask the budgetnista
- budgeting & saving
- business tips
- buy car
- Consumer reports
- creative summer fun
- credit cards
- credit report
- credit score
- Financial help
- identity theft
- LIVE RICHER Challenge
- live richer credit
- live richer net worth
- money mindset
- reduce spending
- save on groceries
- side hustles
- small business
- student loans
- summer fun
- summer fun on a budget
- thank you
- The Frugal FAB 5
- travel tip
- value added
- ways to save
And I heard her say…
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- April 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- April 2016
- March 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- May 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- September 2014
- August 2014
- July 2014
- June 2014
- April 2014
- March 2014
- February 2014
- January 2014
- October 2013
- September 2013
- June 2013
- May 2013