Cost of Basic Expenses
It has been a long time since I really studied what I spend on some of my most basic expenses. For instance, I have been paying some of my monthly bills and fees without really knowing how much they have increased over the past three or four years. But, over the past few weeks, I have started to do some research to find out if there are less expensive ways to operate.
For example, I dropped my health insurance plan for two months last year because of the exorbitant cost and recently signed up for a six-month basic program so that I would have time to learn more about my options. The trigger for me to take action was not only the high monthly cost of my plan, (which carried a high deductible) but also the fact that my local health insurance agent noted about how high my premiums were once I started reviewing my plan. My first thought was, "Why didn't my insurance representative alert me two years ago to the fact that I was paying a higher-than-necessary premium? "
I don't have to be coddled by my insurance representatives, but it would be nice to hear from my agents every once in a while to update my existing plan, present different options and possibly reduce some expenses.
I have also started investigating my home, auto and business insurance plans to see if I am paying more than I should. After making some phone calls and hosting three business meetings, I have already saved at least $500.
Likewise, I have begun to look at the fees I pay for various banking services. Although I thought I had a pretty good handle on what my expenses were, there are many changes taking place with banking and credit card fees and I am confident that I will save money after spending an hour studying.
I've started to inquire about my monthly bills for my landline telephone services. I don't need call waiting, nor do I make as many local calls since I have become accostomed to using my cell phone on a more regular basis. And, I am scaling back some of my long-distance needs because of my cell phone use. I also don't need any of the protection plans for my high-speed commercial Internet service, which was costing me $28 each month.
It is my fault for maintaining the status quo with the fixed costs to run my business. But by making the necessary phone calls and spending a few hours of my time, I am already saving money.