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5 Ways To Reduce Hidden Monthly Expenses

When you think of monthly expenses, you likely think of the big ones: shelter, food, utilities and clothing. But what about those recurring monthly expenses you don’t know about? You may just have hidden expenses lurking in your budget that you pay for, anyway. Instead of automatically paying for services and fees you don’t need, reduce your spending by following these tips.

Examine Your Bill

What are you paying for every month, anyway? The first step in reducing your hidden monthly expenses is taking a cold, hard look at what you’re being charged for in the first place. The next time you get a bill for a service for your cable, internet or even gym membership, take a look at the line items to ascertain if you’re paying for something you don’t need. An add-on expense for a service or feature you rarely, if ever, use may only cost a few dollars per month, but that can add up substantially over the course of a year.

Know When Introductory Rates Expire

Signing up for a gym membership or cable service at a low introductory rate can save you some serious money — at least initially. However, introductory rates are set up so you can use (and hopefully like) a service at an initial low rate that will increase after a certain period of time. Be aware of when the introductory rate expires and keep in mind what the new rate will end up costing you. You don’t want any surprises when the rate changes.

Take Action To Reduce Or Eliminate Fees

Does your bank charge you convenience fees for different transactions? Although the monthly maintenance fee may be reasonable, it can add up significantly over a full year. This is where you need to take action by talking to a staff member at your financial institution to see if there are ways the fees can be waived if you sign up for other programs or investments. Sometimes, all it takes is speaking up. You’ll need to take some notes, too, as the website Lifehacker also recommends recording the name of any customer service representative you have contacted in your effort to reduce convenience fees. You can also explore your options to see if other organizations offer competitive rates that will fit your needs.

Maintain Your Ride

Hidden monthly expenses can go beyond a gym membership you don’t use. If you think your monthly expense for your car consists of a few fill-ups at the gas station or the occasional oil change, think again. According to auto club AAA, your car might be guzzling more than gas when you factor in insurance, license and registration fees, taxes and other expenses. If selling your car isn’t an option, then take preventative steps and keep up with regular maintenance according to Kelley Blue Book.

Purchase Only What You Need At The Grocery Store

Throwing away rotten vegetables and spoiled meat is more than simply an unpleasant task. CNN cited a report by the American Chemistry Council that estimated that a household in the U.S. may throw away $640 worth of food per year, or a little over $50 per month — and that number may be even higher. The council found that one of the reasons food is thrown away is due to spoilage. So the next time you plan to purchase food in bulk or stock up on a favorite item at the grocery store, take expiration dates into account and purchase what you realistically expect your family can eat. Cutting back on how much you spend at the grocery store may result in less food spoilage in your home.

Megan Horst-Hatch is a runner, reader, baker, gardener, knitter, and other words that end in "-er." She is also the president of Megan Writes, LLC. Her work can be found at Examiner.com.


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