A Simple Way to Cut Your Monthly Expenses
One of the most successful business models in the corporate world
is also something you should look for to cut your monthly
expenses.
The business model is a system of recurring revenues. Recurring
revenues are a wonderful way to make money if you own a
business. To best understand this system, think about your cable
or satellite TV. Each month, you send a payment to your provider
to receive your programming. How many times did the provider
have to sell you on their service? One time! How many times do
you pay for the service. Every month.
Of course, the company has to provide you with excellent service
and programming every day, but they only have to sell you once.
After you buy, you’re most likely going to remain a long-term
customer. That’s how recurring revenues works. When a company
sells you on their service one time and you send in a check every
month, they make a fortune.
So how can this help you cut your expenses? Simple. Look for
services you’ve subscribed to once and continue to send in money
every month. Then look at how many of those you really need. If
it’s tough to cut some out, think about this: If it’s a great money
making system for the company, it’s a huge money-draining system
for you.
Sure, some of your recurring revenue accounts are indispensable,
such as water, electricity, and gas. In those cases, look for ways to
cut back on your usage to lower your monthly costs.
But here are some of the most overlooked monthly bills that you
could easily cut back:
+ Extras from your phone company, such as call ID, call forwarding,
voice mail (it’s much cheaper to buy an answering machine than to
pay monthly for voice mail), etc. Look over your phone bill and ask
yourself, “Do I really need this service?” These little add-ons really
add up over time.
+ TV. Move your cable or satellite service to a lower subscription
rate. Or, better yet, try going without it for a while. Yes, you can
live without TV … and probably should if things are tight. Let TV be
a reward you give yourself when you’re in better financial
condition.
+ Your cell phone subscription. These can be some of the biggest
money hogs around. See if you can lower your rate plan. You can
usually do this without incurring any charges.
+ Internet. Look for a cheaper monthly plan. Many of the cheaper
services offer awesome service at a much lower monthly rate.
Shop around and see if you can lower your costs. And some people
pay a lot for hosting service for websites that aren’t producing any
income. Ask yourself if you really need the websites.
+ Financing. If you think about why companies offer financing on
their products, it’s not just because it offers you a convenient way
to pay. It’s because they make a lot of money on the deals. Any
time you buy a product on finance plans, whether it’s a car, a
refrigerator, or anything else, you’re choosing to pay more for the
product. Of course, 0% interest loans are a great tool, but some of
these come with hidden charges, so you have to be careful. Try to
pay in full all the time. You’ll save big.
There are many other subscription plans that sell you once and
bring in money every month. Go through your bills and see which
ones have a recurring revenues type model. Then evaluate each
one and see where you can make cuts.
And remember, you’re not just making a one-time cut. It’s a cut
you’ll enjoy every month from here on out!
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