Getting Finances in Order - The Curse of Small Recurring Charges (pay, taxes)

[santafe400]

With the new year, I've become determined to take better control of my finances.

Of course, in figuring what I have left over each month, I've come up with the usual montly expenses including:

-Rent Payment
-Auto Insurance (80.00/mo.)
-Student Loan Payment (159/mo.)
-Cell Phone Payment (100/mo.)

No Credit Cards as they will all be paid in full (finally!) by February. Car is paid for as well. Don't pay for television.

However, until closer inspection I didn't realize all the small things that had been recurring each-month on my Credit Card statement each month including:

-Newspaper Subscription (39.99 for NY Times)
-Sirius XM Satellite Radio (19.99/mo.)
-Photo Editor Online Subscription (4.99/mo.)
-Some random phone App I never canceled the subscription for (12.99/mo.)
-Other Misc. charges totaling to about (20.00/mo.)
-Grabbing breakfast about 3 times a week before getting to work (70/mo.)

Moral of the story. These recurring charges of which none I really need, really add up each month. And I never even budgeted for them each month.

[wheelsup]

Your cell phone is high as well. Could easily cut in half if not 1/3 without much difference in service.

[santafe400]

I actually pay $25/mo. towards my actual cell phone which is included in the $100/mo. rate. However, might reach out to them and see if there is an option or plan that is $5-10 cheaper.

[beachmouse]

If you like the Sirius, cancelling will probably generate a good promotional offer (the 6 months for $35 all-in is common) a few weeks after cancellation.

[wheelsup]

Originally Posted by santafe400

I actually pay $25/mo. towards my actual cell phone which is included in the $100/mo. rate. However, might reach out to them and see if there is an option or plan that is $5-10 cheaper.

For perspective my wife and I budget $73/month for cell service and depreciation/replacement costs for two lines. That makes each line and phone cost $36.50/month. Unlimited talk/text with 7.5gb each running on Verizon towers. Just bought new iPhone SEs in Oct.

Also might want to shop around on insurance. We pay the same as you for two cars with 300/500 coverage and another $1m umbrella policy on top of that...

I count around $250/month in stuff that isn't needed or you are paying too much on. Throw that on the student loan and pay that off ASAP, will free up another $150, giving you +$500.

[Serious Conversation]

Subscriptions were my bane.

For a time, I had subscriptions to WSJ, NY Times, and Economist. I truly read only NY Times. I canceled everything but the NY Times. I read it daily though.

I canceled my Sirius and Apple Music subscriptions when I went unlimited with Verizon. Amazon offers enough music streaming for me as part of Prime membership.

I keep a thing of breakfast bars in my cubicle at work. You can easily hit $7-$8 at Panera with a sandwich and tea or something. That adds up over time.

[man4857]

Originally Posted by santafe400

I actually pay $25/mo. towards my actual cell phone which is included in the $100/mo. rate. However, might reach out to them and see if there is an option or plan that is $5-10 cheaper.

Buy your phone outright forget the payment. Then switch to a prepaid service (with the same provider), easily save you 50%. The phone payments is how they lock you in by charging you higher fees for the same service.

Example: AT&T Postpaid Service 6GB: $60/mo + $20/line = $80 for 1 line + taxes & fees = Roughly $95
AT&T Prepaid Service 6GB: $40/mo + taxes = $45.

Same service, difference prices. The only difference is the plan and whether you have the opportunity to borrow money to finance a phone.