- Do you look at the cost of your bills?
Last article we wrote about how your income is less important than your net worth. This meant that if your high income is getting burned every month you will have nothing to show for in your future. Yes you can drive a nice car, but what will it improve your life in 5 years? Nothing, it will only increase your bills.
Before we can look at how you are paying your bills you should consider what your bills are. Are you receiving your bills and just flat out pay them directly? The good thing is that you are not enduring late fees. The negative effect is that you will be paying the “lazy tax”. When your car insurance bill comes in do you know how much you pay and what the potential decrease in payment will be if you check around for a cheaper one? If you haven’t done this the last 3 years and you aren’t sure that you are already on a really low price it will certainly be worth it to check if it can be getting better.
I pay my own bills. I feel my own pain. – Romario
It’s only when you pay your own bills and know how much you are paying that you consider if it can become cheaper. Never should you only look at the price. Because something can become a lot cheaper, but how much safety are you loosing and what can be the potential risk in the future? For example your car insurance will cover the injuries that you cause on the other driver. But what about your own injuries? Some insurances require you to have an extra insurance for it. By removing it you will reduce you monthly cost. But this will increase your potential risk when driving and causing an accident yourself. Don’t only look at the price, but also at what you are missing on if you remove some coverage.
During the pandemic many of us were forced to be looking at our bills more carefully. hopefully you have already discovered a way of reducing your costs. if you haven’t this is the perfect time to start looking at it. All companies including insurance and banks know how difficult we have it right now, so as long as you ask they may be able to either reduce your monthly bills or allow you to pay a bit later. However don’t think that deferral is the Holy Grail. It will enable you to bring your finances in check. But the next bill will come soon after your first payment. Only ask for extra time to pay if you know you are capable of doing it, or at least that you avoid extra fees. It doesn’t hurt to ask the company for blocking the extra fees when you know you will be able to pay it a week after the initial date.