Leak is often associated with something that is unplanned or something that is not supposed to happen. Faucet leaks, news can leak and even your money can leak too. Your money can slip away due to various reasons such as over payments or unforeseen charges. If you think that your money is leaking, there are several ways to set your money back from leaking and it includes the following:
1. Hidden Fees:
Be wary of the hidden fees on your monthly bills. Before you sign up for credit cards or other loans, make sure that you have read and understood what was written on the fine print. These hidden charges may cost few hundred dollars each year, the money you lose could have been added to your savings account if only you were more careful. Double check your monthly billing statement for charges that were not previously there or if you are being charged for any cancelled service.
2. Additional storage units:
Check if you really need additional storage units. Some people are willing to shell out few hundreds of dollars each month just to keep their stuff out of sight. You have to understand that the possessions that you keep in your storage unit depreciate in value. You may want to consider selling, donating or discarding these material possessions. You could be paying more money than the real value of the things that you keep in your additional storage unit.
Consider renting instead of buying equipment. If you are going to use the equipment for several days only, you might as well rent one. You will only pay a fraction of the cost and save good amount of money too. Ask yourself how often you will need these specialized tools, from there you can decide whether or not to buy the equipment. If you are going to purchase the equipment, you will also need additional storage space for it.
4. Services and policies:
Get bundled services and policies. You don’t need to pay separately for internet, cable and phone services. More often than not, a lot of companies offer bundled services so that consumers will experience using the products and services they provide. It will definitely cost you less if you avail of these bundled services and it is a good way to set your money back from leaking too. However, if you are not going to use the services included in the bundled package, then you have to carefully think about it. Bundle service is also applicable to insurance policies; check out for insurance companies that offer big discounts when customers avail of multiple policies.
5. credit card rewards:
Use credit card rewards. Hoarding the rewards on your credit cards is not a good idea, unless you are saving for airline tickets. Redeem your credit card rewards every year and you will be surprised on how much money you are going to save. There is also a bigger chance that your rewards points will expire especially if you miss a payment. Cash-back rewards can be redeemed on monthly basis, the best way to do it is to apply the reward on your credit card balance.
6. Smartphone Bill:
Verify if your smartphone bill is correct. Check if the number of free minutes of calls, SMS and data plans are correct. Some people are overpaying their smartphone bills because they are not aware on what was supposed to be included in their wireless plans. It will be much better if you have an idea on how much messages you send, estimate the number of minutes that you use for calls and how much data you need each month. In this manner, you have an idea whether or not you are overpaying your smartphone bills.
You don’t want your hard-earned money to gush out of your wallet or to slowly drip. You may not easily notice that you are already losing a dollar because it is just a minimal amount. However, if these money leaks happen frequently, it could add up to a significant amount that you can use for your retirement savings.
SB is a financial advisor and business writer. He covers news about personal finance, frugal living, mortgage debts and writes for UK Payday Lenders.