With the advent of credit cards, debit cards, and electronic banking, it’s become so easy to spend. It’s also really easy to lose track of where your money is actually going. Here are some tips to help mind your money and reduce spending.

Reoccurring monthly charges

Anything that is charged on your account on an ongoing basis should be reviewed carefully. Make sure it’s something you need, regularly use, get benefit from, and enjoy.

Magazine - I used to subscribe to 4 magazines but found that I was only reading 2 on a regular basis. Each time I thought about cancelling the ones I didn’t read, I’d think “oh, but I’ll read it next month.” Finally, I told myself if I really missed the cancelled subscriptions, I’ll simply re-subscribe. Guess what? I don’t missed the cancelled subscriptions and now I don’t have the guilt about not reading it.

Cable - This is opposite of magazine. It’s so easy to sit down in front of the TV and tune out. Hundreds of channels to capture your interests. But when cable started costing close to $80/mo, it was time to consider if it’s really worth the money. $960/year is enough money I’d rather spend on a vacation, or cushion emergency fund.

Netflix - When Netflix announced it was raising its prices, I downgraded the subscription to 1 DVD rental at a time. Another idea would be to subscribe for a month or two to watch all of your favorite shows then cancel (then re-subscribe when the new seasons come out.)

Bank fees - This is one of my pet peeves. When Wells Fargo announced it will start charging a monthly service fee of $15 so I can have the privilege of keeping my money with them, I was fully ready to skip out and find a new bank. Luckily, our personal banker was able to waive the fees. Banks bank on the fact that most customers won’t bother to switch banks over a small fee but those small fees add up. Remember, every dollar counts.

Credit card fees - If your credit card charges an annual fee, please do yourself a favor and go elsewhere. Credit cards charge merchants a fee ranging from 1 - 4%+ for everything you charge. They’re making enough money. They really don’t need your $80/year.

Also, when you buy something at a local business, consider paying cash. My mom owns a nail salon and she was paying 6% on all credit card transactions. Unlike Wal-Mart, she didn’t have any bargaining power. 6% is a lot to lose to Visa. (Many small businesses will also offer a cash discount, so be sure to ask.)

Gym membership - Again, if you don’t use it, cancel. You can always sign up again. My rule is if I don’t go for 2 weeks, it’s cancelled. No questions asked.

Phone - Occasionally shop the competition or see what deals your phone company is offering to new customers. I left Sprint because it was charging me a lot more than what it was charging new customers. (Talk about a bad business model.) If you have a home phone, consider doing away with it.

If you have a tip to add, please drop me an email. jcho{at}jclawgroup{dot}com.

Photo credit: Images_of_Money

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