You often hear of people going on diets or health detoxes especially in the New Year.
So why not try a different type of detox a financial detox, by focusing on a few simple areas you can end up saving a lot of money.
Here are a few ideas on how to sort out your finances.
We have all heard of passive income, but the flip side is passive spending. Do you have a lot of small monthly subscriptions that you don’t use? These small amounts add up and can have a large effect on your monthly cash flow, especially if you don’t use them. Examples of some common subscriptions are magazines, gym, Netflix and Spotify. So, if you have these subscriptions, but don’t use them, save some money and cancel them.
Home Loan Savings
If you have a home loan you may have noticed that your bank has been slowly increasing your interest rates. If they have its time to shop around and get a discount. You can either call your bank and ask for pricing or if you loan is via a broker give them a call and ask them to get your interest rate lower if it is higher than the market average. It’s a simple phone call that can save you thousands.
Credit Card Interest
If you have credit cards the interest rates on these are always high, so make a concerted effort to pay these off quickly and reduce the amount of interest you pay. Or you could maybe even look at switching credit cards to advantage of lower interest rates or interest free periods.
Lastly, it’s been a hot topic in the news lately electricity prices. Like your mortgage jump on the phone and give your electricity provider a call and see if you can get a better deal than what you are currently on. You may have signed up under a promotion but once this finished you are normally put onto a higher rate or better discounts are on offer.
The above ideas are simple ways for you to detox your finances and save hundreds if not thousands of dollars a year by simply cancelling subscriptions you don’t use or making a few phone calls and asking for a discount. The worst that can happen is that they say no, but the upside can be much more and savings for you.