save money
The beginning of a new year is a wonderful thing. You can look back and see where you’ve come from as well as look ahead at things to come. One of the most important things you can do here at the beginning of the 2013 is to look ahead at ways you can save money in the new year. Personally, there are several areas that I will be looking to either reduce spending or keep spending the same, but get more value in return.
Each of these things will involve some legwork on my part to fully capitalize on. Research will need to be done, and calls will need to be made. But if I play my cards right, I know I can find good deals. I will be writing posts about each of these topics as they get closer…
Recurring Expenses
One of the keys to successful personal finance is spending your money on things that are important to you, and then cutting out spending on things that aren’t. To make sure we’re doing just that, this month I’ll be doing a review of all our recurring expenses (going from largest to smallest). This is something I periodically do anyway, but it’s a good habit to get into. (Post coming in late January)
401k Plan
Like many other employers, my employer provides a company match to my 401k contributions. I don’t know how common this next part is, but where I work, this matching contribution is always made sometime in February of the following year and is always made in company stock. While I truly believe that I work for a great company that has a solid financial history and will continue to perform well, I also believe in being diversified. Since I already rely on my employer for my job itself, I think it is best not to have much (if any) of my 401k balance invested in my company’s stock.
So, once the employer contribution is posted to my account, I will move ahead and reallocate it to my targeted investment funds. This also serves as a good time to rebalance the rest of my 401k funds to make sure my allocation stays how I want it. (Post coming in late March)
Cell Phone Plan
The two-year wireless contract that we signed up for back in 2011 will expire in May of this year. We have a lot of choices here. We can simply keep our current phones and plan and pay month-to-month with the option of cancelling and switching carriers at any time. We can sign a new 2-year contract with the same company (AT&T), upgrade our phones, and get a new plan. Or we can look elsewhere and switch to another carrier.
For the most part I’m satisfied with our plan, but I want to make sure we’re getting the best deal. So, my plan is to analyze our actual usage for the past year (minutes, texting, and data) and see what plans (or even no-contract plans) are out there to best fit our wireless needs. (Post coming in mid May)
Vehicle and Homeowner’s Insurance
Our six-month automobile insurance policy will expire in March of this year, and our annual homeowner’s insurance policy will expire in September. The policies on our two vehicles (along with our homeowner’s insurance) are though Geico. As long as our auto insurance policy renewal offer in March is reasonable (no more than 5% higher), my plan is to simply renew it another six months. Then, in September when the auto policy and homeowner’s policies both expire, I’ll go through the process of rate shopping and make sure I’m getting the lowest rates for my desired coverage. (Post coming in mid September)
Do you have any specific things you plan on doing this year to either save money or get more for the same amount you’re already spending?
7 comments
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Canadianbudgetbinder
January 1, 2013 at 4:08 pm (UTC -4) Link to this comment
Every year we have to renegotiate with our communications provider to get a deal. It’s almost a daunting task and hate it to be honest but it must be done. I do all the research and get comparables and then ring them up and see if I can make a deal. So far our bill has gone down over the past 2 years whilst getting the same services and a free pvr to keep so that’s been pretty cool. Happy New Year mate! Mr.CBB
Justin
January 1, 2013 at 11:34 pm (UTC -4) Link to this comment
Yeah, I’ve always heard the negotiating with the big cell phone companies typically doesn’t accomplish much. My aim though is still to find a wireless plan that really matches our needs. Maybe it’s a single family plan and maybe my wife and I have separate plans. But I’m kind of excited to do the research and find out!
Sean @ One Smart Dollar
January 1, 2013 at 7:19 pm (UTC -4) Link to this comment
This year is going to be a test for us. This will be the first full year with a baby and really have no idea what the costs will be so were just going to take things one month at a time.
Justin
January 1, 2013 at 11:36 pm (UTC -4) Link to this comment
I know exactly what you mean. Our little boy is almost two, and it was a big change. Definitely a good change, but still a change. You should check out my ‘Costs of Raising Baby’ section where I detail a lot of the first year baby costs.
Bill
January 2, 2013 at 7:48 am (UTC -4) Link to this comment
I’m glad for your reminder about auto insurance. I’ve always just renewed the policy with the same carrier, never bothering to shop rates. I know that isn’t smart so I’m resolving to take a hard look at that expense this year. We have our policies through the same carrier that provides our homeowners’ insurance, and that results in a discount. Still, I know we’ve been foolish not to shop rates.
John S @ Frugal Rules
January 2, 2013 at 1:24 pm (UTC -4) Link to this comment
We’re going to be upgrading my wife to a smart phone here in a few weeks and will get the fun of trying to negotiate with our provider. I am not expecting a whole lot, but truthfully anything would be nice.
My Money Design
January 3, 2013 at 1:20 pm (UTC -4) Link to this comment
I’m always ready to call up Comcast and threaten to cancel my service if they can’t work with me on a discount. I’ve received a lot of free HBO as a result in the past!