When examining monthly outgoings, many people focus on cost and convenience rather than true value. This is understandable: if your budget is tight then the amount is a governing factor; if your spare time is restricted, then convenience is important too.
However, by focusing on value as well as cost and convenience, you can ensure that your monthly outgoings are always genuinely beneficial to your life. Below, we’ve detailed three outgoings that tend to suffer from an over-focus on cost and convenience – and what you can do to add an extra focus on value to these areas…
Credit card interest
If you are paying credit card interest, then it’s important to question why – in most cases, convenience alone may be the reason. If your credit isn’t in the best of shape, then paying interest on a balance is probably inevitable. However, if your credit score is average or above, then there’s really no reason to pay interest.
As CompareCards.com details, there are plenty of balance transfer offers that you can take advantage of in order to help manage existing debts. These deals tend to run for at least 12 months, provide the perfect opportunity to actually crunch down your balance rather than just servicing interest with your monthly payments, and are incredibly easy to do. Many people stick with their existing provider more out of habit than anything else, but it’s worth taking the time to see if there are options out there that offer far better value.
TV subscription services
TV subscription services such as Netflix and Amazon Prime are incredibly valuable, offering a huge amount of great content for relatively little financial outlay.
However, a problem can develop – financially speaking – if you don’t keep an eye on how many subscription services you have. The monthly payments of between $5 and $15 seem small in isolation, but if you have a number of individual subscriptions, you can easily be paying in excess of $75 per month for these services alone.
If you use all of your subscriptions, then the cost is justifiable; we all need entertainment, after all. However, it’s worth assessing your cost-per-use per service. For example, if you pay $10 a month to watch two hours of television, you’re paying $5 a time – this might be justifiable, but it’s worth calculating to make sure the cost/value math checks out. You can also ensure better value by cancelling a service if the shows you usually watch on that service are out of season; most subscription services are more than happy to let you stop and restart in this manner.
Internet service
Internet access is an essential in the modern world; in fact, as reported by Gizmodo.com, it is even considered to be a human right by the UN. Given the importance of internet service, it can be tempting to accept the first package and speed you are offered. The need to have a internet service often supersedes a desire to find a good service, and the convenience element of just renewing your existing deal also can’t be overlooked.
However, if you are spending money on your internet service, it’s worth taking the time to research options such as Optimum by Altice to ensure you find the best deal for your needs. After all, your service costs are a fixed amount you will be paying every single month, and contracts can be locked-in for as long as two years, so this is a financial decision that can have an ongoing impact. Given that it is quick and simple to switch to a new provider, there’s plenty of benefit to checking your options when your current deal is up for renewal.
In conclusion
In order to keep your finances in check, scrutinize the three areas above and see if there are any improvements you can make.
