Modern conveniences like automatic product shipments and bundled service deals can be fantastic when you’re actively using the products and services, but many people set and forget them, sometimes paying for things they no longer use.
One strategy to avoid this scenario is to check your financial accounts at the end of each month for auto-payments to ensure you are still using those products or services.
Here’s a list of four popular “auto-pilot” expenses that may be nibbling away at the bottom line.
- Duplicate Services — A few years ago, it seemed like a great idea to combine costs for cable, Internet and a home phone into one monthly bill. Today, however, you may be watching Netflix and Hulu much more than cable, and your home phone hasn’t rung in months. If this sounds like your situation, it may be time to rethink that bundle and pare down to only the services you use.
- Mobile phone plans — At one time you, your spouse, and your three teenagers were on your cell phone plan, but now your kids have grown, moved out and pay their own bills. Do you still need a family plan with unlimited data or could you downsize? Either way, contact your provider to renegotiate a deal or check the competition and explore whether month-to-month mobile service providers might offer the functionality and coverage you need at a lower price.
- Automatic renewals — When signing up for services like Amazon Prime or a gym membership, you may opt for an automatic renewal contract. Unless you notify the company that you want to end the service, funds will automatically be withdrawn from your account when it’s time to renew the contract. Set a calendar reminder on your computer, tablet, cell phone or other mobile device for a week or more before any auto contract renewal payment is due so you can weigh if you want to renew the service or notify the company that you want to discontinue it.
- Car insurance — Comprehensive auto insurance is necessary when you are repaying a car loan or if your car would be expensive to replace. However, if your car is paid for and has declined in value, full coverage may cost more over time than the car is worth. Once a car is paid for, a wise money move is to check the car’s estimated value and then ask the insurance provider if a different policy might make more financial sense.
Want to keep a closer eye on your finances? Sign up for Mobile Banking to access mobile statements anytime from your smartphone or web-enabled mobile device.
