When it comes to financial habits, budgeting, saving, and setting important goals are all well and good. However, mostly they look at the money that we spend actively. Modern life tends to be a little more complex with that, with many of our transactions being done automatically. As such, it’s important to have a “money day” once a month that looks at where your money is going without you actively spending it. Here, we’re going to look at what you should do with your money day.
The Danger of Growing Subscription Costs
One of the more modern justifications for a “money day” in your month is the rise of the digital subscription. From Amazon Prime to Netflix, online gaming accounts and Audible, there are a lot of subscriptions that are tempting to sign up to, but too easy to set and forget. One of the most effective ways to cut down on your subscription cost is to look through returns for the entire financial month and to identify every direct debit you have as recommended by lifehacker.com. If you didn’t make use of a subscription service at all for the month that you were billed, it’s a good sign that you shouldn’t have it in the first place.
Be a Better Insurance Customer
While subscription costs can rocket up quickly, rarely do they have a financial impact on your budget that your insurance costs can. From car insurance to health insurance to home insurance. Your money day is a time to look at your contracts and see which are close to expiring or renewing. It’s the perfect time to look at alternate providers like medicarenationwide.com that could help you arrange a deal better suited to your needs. It’s also a good time to look at the overall trend in costs and see if there are any that are raising so you can figure out why. It’s too easy to get stuck in insurance deals that aren’t working for you and, often, loyalty doesn’t net you as much as a good switch would.
See What Services Are Getting More Expensive
Your monthly money day is also the perfect time to take a closer look at your must-have costs and how you can save on them. In particular, look at the service contracts you have with your internet providers, cell providers, and other long-term costs. There could be some room to save money there, not only by switching providers but by getting in touch with your current providers. Simply mentioning that you’re thinking of switching internet providers, for instance, could result in you getting an offer that’s much better than your current deal. Again, it’s worth mentioning that loyalty alone rarely gives you an advantage that negotiation or finding a better provider would.
Hopefully, the tips above make you realize the importance of the money day, and how it can contribute a lot more to healthy financial habits than you might have initially thought. Now it’s time to schedule your first money day and get ready for some calculations.