Each month, expenses have a way of creeping up. You may not even notice right away unless you stop and take stock often. You may be wasting hundreds of dollars each month and not even know it.
Here are four easy steps you can take to protect against unexpected expenses, scale back monthly costs, and manage savings better.
Protect yourself against significant repairs
Now is the time to consider buying a home warranty if you have six to 10-year-old major appliances. Home warranties can be used to pay for repairs on big-ticket appliances such as refrigerators, HVAC systems, washer dryers, etc.
These types of items are not covered by homeowner’s insurance.
Home appliance protection, home appliance insurance, home warranty insurance, and home warranty are all plans that can protect you if your home’s systems or appliances break down.
Update an outdated auto policy
Often, car insurance companies increase rates without you even knowing it. If you haven’t been involved in an accident recently, you may be eligible for policy changes for more affordable coverage.
Shopping around for more affordable coverage could save you hundreds a year. If you have already prepaid your premium, your insurance company is obligated to refund you the portion you prorated when you switch.
Bottom line: Shop for new coverage every three to five years.
Don’t overpay for your mortgage
With mortgage rates recently at all-time lows, many homeowners took advantage and seized the opportunity to lower their monthly payments. If you haven’t looked into refinancing yet, you may be overpaying for your mortgage.
Refinancing could save you hundreds if not thousands per year and lower your monthly payment.
Shop around for the best deal, as refinancing often comes with fees that can chip away at savings. Individual lenders set their own lean refinance fees.
Your credit score is a key consideration when deciding whether or not to refinance. If your score is good or excellent (generally in the 700s), you likely can pay less.
Avoid splurging on wants over needs
A recent poll showed how much money people were spending on unnecessary items. At that time, the average American spent about $1,500 on nonessential purposes.
That amounts to about $18,000 lost to spur-of-the-moment creature comforts.
Almost $200 per month went to restaurants, accompanied by another $200 for drinks out with co-workers or friends, delivery or takeout, and lunch. Impulse purchases, personal care, nonessential ride-shares, and cable accounted for an additional $100.