The current economic downturn has meant that many families need to tighten their belts. It is possible to reduce monthly living expenses by altering spending habits. Ways to save money on household bills include taking advantage of higher deductibles on insurance products, choosing cheaper family vacations, online bargain shopping and cheaper phone calls.
Enjoy Lower Monthly Living Costs with Cheaper Family Vacations
Visa conducted a study that showed that US consumers intend to spend an average of $1,654 per person on a summer vacation. According to Christina Couch of the New York Daily News: "Flip that vacation from summer to winter, factor one-fourth off hotel, airfare and entertainment, and that $1,654 drops down to a $1,241 vacation budget for a $413 savings." This simple change results in a $34.32 saving in monthly living expenses.
Online Bargain Shopping can Save Money and Reduce Household Bills
James Beveridge, a Chicago-based financial analyst, estimates that he can save $40 a month through online bargain shopping. Ways to save money include the use of online comparison sites, such as Pricegrabber.com; it trawls the market and allows someone to get the best deal. He also suggests using bartering sites, such as Craigslist, to identify second-hand bargain items.
Ways to Save Money on Telephone Calls
Madison DuPaix, the author of finance blog 'My Dollar Plan' found that using Vonage and Skype can reduce monthly living expenses by up to $30 per month. It becomes possible to forego having a land line and make online calls using Vonage or Skype for just a penny a minute.
Reduce Monthly Living Expenses with Higher Insurance Deductibles
A deductible is the amount of money that is subtracted from an insurance pay-out following a claim. The higher the deductible selected the lower monthly living expenses will become.
Current insurance premium statistics:
$4,704 is spent on health insurance premiums- The Kaiser Foundation.
$1,954 is spent on car insurance premiums- Ratewatch auto insurance.
$804 is spent on Homeowners insurance- The Insurance Information Institute.
According to Consumer Reports.org, an insurance policy typically carries a $250 deductible. It is possible to save upwards of 15 per cent annually with a $500 deductible and 25 to 30 per cent with a $1,000 deductible. Terry McConnell, vice president at Erie Insurance stated that: "Most homeowners are not aware of the significant savings awaiting them in their policy by re-evaluating the deductible."
Monthly living expenses can be reduced through a few behavioural changes. Higher deductibles on insurance products, choosing cheaper family vacations, online bargain shopping and cheaper phone calls are all excellent ways to save money and reduce household bills.
Readers that found this article useful may also be interested in identifying the best credit card deal, discovering how effective credit card debt settlement is or finding out how to avoid identity theft.
Sources
Couch, Christina. (6 May, 2009) "9 cash saving strategies that pay big bucks." New York Daily News
Consumer Reports.org
The Kaiser Foundation
Ratewatch auto insurance
The Insurance Information Institute
Disclaimer: This article in no way attempts to give legal or tax advice. One should consult a licensed attorney, tax advisor, or other qualified professional.
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