This Month, We’re Taking a Fresh Look at How We Spend

I just did this with my cell phone bill and saved $100.00 a month. I deleted services and lines I wasn’t using and played the “I’m a long time user” card

Negotiating your bills can save you a lot of money, especially with recurring services like internet, phone, insurance, and even medical expenses. Here’s a step-by-step guide on how to effectively negotiate your bills:

1. Do Your Research

• Know the competition: Find out what other providers are offering. Use these deals as leverage.
• Understand your usage: Know how much data, minutes, or coverage you actually use—this helps identify unnecessary add-ons.
• Review your bill: Look for errors, unexplained charges, or services you don’t use.

2. Contact Customer Service

• Use the phone: Negotiations are more effective via phone than chat or email.
• Be patient: You won’t get this done in a few minutes. It took me a hour and a half but I’m saving $1,200 a year!!
• Ask for the retention department: These reps are often authorized to offer better deals to keep customers.

3. Use These Phrases

• “I’ve been a loyal customer for [X] years.”
• “I found a better offer from [competitor].”
• “Can you help me lower my bill?”
• “Are there any current promotions or discounts available to me?”
• “I may need to cancel unless we can find a more affordable option.”

4. Be Polite but Firm

• Stay calm and friendly. People are more likely to help someone who treats them with respect.
• If the first rep can’t help, politely ask to speak with a supervisor or call back another time.

5. Consider Bundling or Downgrading

• Ask if bundling services (e.g., phone + internet) will save money.
• Downgrade to a lower plan that better fits your actual needs.

6. Follow Up

• Request a confirmation email or letter of any changes made.
• Monitor your next bill to ensure the discounts are applied correctly.

Separate Wants from Needs – We just started doing this again. It’s really easy to forget you don’t need everything you’re buying!!

Separating wants from needs is a foundational skill for managing your finances, making smart purchases, and setting realistic goals. Here’s how to do it effectively:

What Are Needs?

Needs are essentials required for survival and basic well-being. These typically include:

• Housing (rent or mortgage)
• Utilities (electricity, water, heat)
• Food (basic groceries, not dining out)
• Healthcare
• Transportation (for work, school, or medical appointments)
• Basic clothing

Ask: “If I didn’t have this, would it negatively impact my health, safety, or livelihood?”

What Are Wants?

Wants are things that enhance your life but aren’t necessary for basic survival. Examples:

• Dining out or takeout
• Subscriptions (streaming, magazines, premium apps)
• Designer clothing
• The latest phone or gadgets
• Vacations
• Gym memberships (when free alternatives exist)

Ask: “Is this something I could live without or replace with a cheaper option?”

How to Tell the Difference

1. Use the 24-Hour Rule – Wait a day before buying. Needs usually can’t wait; wants can.
2. Apply the “Double Check” Test – If you’re unsure, ask twice: “Is this a must-have or a nice-to-have?”
3. Budget Categories – Label your spending categories clearly in your budget (e.g., Groceries = Need, Dining Out = Want).
4. Prioritize Long-Term Impact – Needs often have lasting value; wants often provide short-term pleasure.

Why It Matters

• Keeps your savings and debt in check
• Helps you live within your means
• Prepares you for financial emergencies
• Encourages mindful spending

The budgeting 50/30/20 rule is a simple guideline that suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. It’s a way to quickly and easily organize your spending and ensure you’re saving enough.

Here’s a breakdown:

• Needs (50%):

These are essential expenses like housing, utilities, groceries, transportation, and debt payments.

• Wants (30%):

This covers discretionary spending on things you enjoy but aren’t essential, such as entertainment, dining out, hobbies, and travel.

• Savings and Debt Repayment (20%):

This includes building an emergency fund, saving for future goals, and paying down debts.

The 50/30/20 rule is a starting point and can be adjusted based on your individual financial situation and goals. It’s a flexible framework that encourages balanced spending and savings, while also allowing for some wiggle room in discretionary spending.