If every month it seems your bills are going up and up, it might be time to talk to the collectors. "Get it in your head that everything is negotiable," says financial author and radio host Dave Ramsey. "You just have to ask."
1. Appeal your real-estate taxes.
"It's not as hard as it sounds," says Joseph Kelly, a certified financial planner at Valic Financial Advisors in Princeton, New Jersey, and an ambassador for the Certified Financial Planner Board. Visit your local tax office to check the public records that show the assessed value of houses in your neighborhood. "Look at comparable houses that are close to your size." Find two or three homes similar to your own but with lower assessments and taxes. Voila. You've got the evidence you need to present at a hearing in front of the tax assessment board.
But the odds are you won't ever need to appear. You can meet with your assessor, who would rather change your bill (if you're truly overpaying) than go in front of the board. "The assessor has the power to immediately change your assessed value," says Kelly, who has never had a client "not get something off." A couple hours of your time could save you $1,000 each year.
2. Phone your credit-card company.
"If you've had the card a long time, or if you've been a good customer of that company, you've built a relationship," says Kelly. He recommends asking, "Is there any way you could give me a better rate on the interest I'm paying you?" Don't be shy about it. "A lot of credit card companies will do things if you ask," he says. "They know you can go to another company." Call, too, if you occasionally don't make a payment on time. Kelly suggests saying, "We were on vacation. Could you waive the late fee?" Asking nicely could save you $50.
3. Try a punch card at the gym.
In any given year, 23 percent of the 50 million Americans with a gym membership leave their health clubs, says Meredith Poppler, vice president of industry growth for the International Health Racquet & Sportsclub Association. Don't automatically sign up for the one-year membership, says DeDe Jones, a certified financial planner and certified public accountant who is managing director of Innovative Financial in Lakewood, Colorado. "Make sure you're going to use the resource before you make the commitment." She goes to a gym with a $600 annual fee. Each "punch" visit is $6.75. That means you'd need to use the place 100 times a year to make a membership worthwhile. "Do the math," says Jones. Most people make resolutions and start out strong. Then their visits trickle off, and they've wasted money.
4. Call your internet, cable, and phone company.
Ask about bundling your services. Then politely say, "My bills are getting out of hand. Would you audit my account?" says Kelly. Chances are, the customer service rep will tell you about the current special. At Kelly's urging, one client finally called to ask about lowering his bill. The outcome? He shaved $25 off his monthly bill, plus he got a faster internet connection and three extra cable stations — under a new bundled plan. Make sure to mention if you have a child in college, because you may be eligible for a special discount. Vendors don't want to lose you. That's why they run "client-retention" departments, says Jones. Ask to speak to someone there, and sign up for the latest promotion after your old deal expires.
5. Get your insurance agent on the line.
"Always have an annual review of your [home and auto] insurance," says Jones. Minor changes in your home or driving status could mean big money. Potential ways to save include: changing a roof from a shake shingle to composite, doing fire mitigation, or shortening your commute with the start of a new job. The insurance agent won't know unless you notify him.
6. Save at the gas pump.
Many stations offer 5 cents off per gallon when you use cash, not plastic, because then they aren't paying the 2 percent fee to the credit-card company, Jeff Lenard, vice president of industry advocacy for the National Association of Convenience Stores. That savings can pile up. The average car uses about 10 gallons of gas a week. If you save five cents a gallon, you save 50 cents a week — or $2 a month, says Lenard. (Two cars? Double those savings.) Meanwhile, don't waste fuel. If you go 60 mph instead of 70, you'll save about 1.3 gallons of gas in a 5-day workweek, according to the AAA. You'll also conserve fuel if you take junk out of your trunk and lighten your load. To avoid driving around, looking for a station and wasting fuel, use a free app like GasBuddy to find gas locations and prices.
7. Decline extended warranties. "It's not a good deal," says Ramsey. "The math doesn't make sense because 75 to 85 percent of the warranty cost goes to marketing and commissions. Warranties at electronic stores are ridiculous because these stores work on such slim margins. They make most of their money on financing and extended warranties."
8. Talk to a customer-service rep about your subscriptions.
Before you automatically mail in a personal check to subscribe or renew, call the 800 number. At the very least, you'll save money on postage if you pay with your credit card this way. But while you're on the phone, ask the rep if it's cheaper to switch to an online subscription. Also, mention the deal on the promotional cards tucked inside the magazine — and ask if it's really the best offer. "The more you can talk to a person, the better deal you're likely to get," says Jones.
