2012 is going to be the year that my husband and I kick most, if not all of our debt to the curb. In order to achieve this, we need to cut our expenses and make extra income. So far, we have or will be making cuts in insurance premiums, cable and housecleaning services. Yes, I said housecleaning services. The only other regular expense I considered cutting was our cell phone service, but we just recently upgraded our iPhones and committed to another 2 year contract. The penalty to switch to phones that only make calls & text isn’t worth it. I am going to look into how much texting we do & maybe save a few bucks there. I am currently going through the house to look for ways to make more money. So far I’ve come up with two store returns.
Insurance
Our vehicles are 1997 and 2000 models years and I seriously considered only carrying the minimum amount of insurance required by law. Instead we decided to raise our deductible on each vehicle to $1000 each, saving us over $200 a year in premiums.
We also reviewed our renter’s insurance. We were so used to paying a homeowner’s policy for 14 years that renter’s insurance seemed so cheap in comparison. We determined that we had twice the coverage that we really needed so we cut it in half and will gain another $100 year.
Cable
I am still reeling in shock on this one. I have convinced my husband to cut the cable cord! We will still get internet and basic TV channels, but that will still put almost $100 in our pockets every month. We are going subscribe to Hulu Plus for $7.99/month so we’ll net just over $90.
Housecleaning Services
I have absolutely no rationalization for this expense while still in debt. It’s been awfully nice to come home to a clean house every other week, but I am leaving a note tomorrow giving a month’s notice that we are ending the service. Annual savings – $2600!! That will cover our travel this year and maybe part of next.
This leaves us with rent, utilities, groceries and credit card payments. I need to figure out where I can shave some more dollars. Today we saved 20% of our grocey bill!
Merchandise Returns
If it has a tag on it, it’s going back.
Kohl’s – $20 in store credit or $10 back to checking. I took the store credit because I just couldn’t kiss off $10. Fail?
JC Penney – Shipping back $83 in clothing returns tomorrow.
Have you successfully cut costs? How much are you saving?
This is awesome and great minds think alike, I guess!
One my biggest revelations was when I cut the cable cord too. I couldn't believe how much I "didn't miss the TV" like I thought I would. I went from $120 a month to $16 ($8 hulu + $8 neflix). In one fail swoop it was a massive money saving decision. I couldn't believe it. Everyone should make the decision like we did!
Merchandise returns is a great idea. I don't shop too often but I know of a few things that still have the tags on them. They are going back, thanks to you!
Thanks Carrie. I kept my word and ditched the cable this Monday. My current bill went from $186.31 to $51.92.
Wow, I'm so impressed! That's a lot of bills to cut, it looks like you're going to do great with paying down your debt.
We cut cable, and recently our rent (we're moving) and since we're moving closer to work, gas has to be cut too. Plus we're trying to use all of our extra food, since we don't want anything to go to waste! I need to start paying back my student loan this year, and we also want to save up more for our house downpayment, so I think you've inspired me to find more places to cut!
You'll have to let me know what other costs you find to cut. I'm sure I haven't thought of everything. Hope your move goes well!
These are some great ways to save money! Congrats!
Housecleaning is one area that my wife and I currently don't pay anybody else for, but it's always up for discussion (we'd both really like to get someone, but we haven't figured out the best way to hire someone [should we go through a service or just get somebody off of Craigslist?]). I guess until we find someone, we're saving money.
Thanks. We're getting the house cleaned for the last time this upcoming Monday. I'm sure we'll miss it, but being able to pay cash to travel more often will be even better.
Gah – I'm dying to cut our cable because it's out of control! We have a gazillion channels, but still end up watching the same stuff all the time. Beyond cable, though, we don't have much else to cut. Both of our vehicles are almost paid off, but not for another year.
I really don't miss the cable at all. I did sign up for Hulu Plus & Netflix for $7.99/month for each.
I haven't had cable for a long time. I found the more I watched TV with advertising, the more I spent. I think cable will be a hard sell with all the free/cheap internet choices we have now! I used a housecleaning service for awhile when I lived with my Dad and Gram- that house was too big to clean. Now though, I live in an apartment so it's not an issue thank goodness!