Your Money_ The Missing Manual - J. D. Roth [45]
For many services—cellphones, fitness clubs—you pay a flat fee that grants you a certain amount of use (or in some cases, as with cable TV, unlimited use). This means you often pay for things you never use, like extra cellphone minutes, cable channels you never watch, and days you don't go to the gym.
You may be able to save money by paying only for what you use instead of shelling out a recurring fee. Each situation is different, but it's not hard to run the numbers.
For example, pull out your most recent cellphone bill. Divide the total amount by the number of minutes you used to find out your per-minute cost. Then visit a prepaid wireless company's website and see what it would cost you to pay as you go. You may be able to save a lot of money.
If you don't actually use the service you're paying for, it's easy to make the call. Don't go to the gym? Cancel your membership. Only read the newspaper once a week? Stop getting it delivered every day. Cutting a recurring expense is a one-time task, but it pays you back with improved cash flow every single month. Plus it's one less thing to worry about.
The cable company
The Internet may just kill cable television. Not only can you get amateur (and some professional) content on YouTube, you can also watch network programming for free or cheap—often from the networks' own sites. Three great alternatives to cable are:
The iTunes Store, where you can buy episodes of your favorite programs or subscribe to whole seasons. If you miss Mad Men and just have to see it, this is a great choice.
Hulu.com offers a variety of current TV shows, like 30 Rock and Family Guy, as well as a growing library of classic programs from years gone by. This is the place to go if you want to watch Adam-12 or The Mary Tyler Moore Show. Hulu also has a limited library of movies.
Netflix isn't just a DVD-by-mail company anymore. They also let members watch old movies and TV shows directly in a web browser.
In early 2007, I dropped my cable from a $65.82 deluxe monthly package to a plain-vanilla basic rate of $12.01 per month. To make up for some of what got cut, I started buying some shows through the iTunes Store and watching others on various websites. Since making the switch, I've paid an average of $27.90 per month for TV shows (including basic cable), a savings of $37.92 per month—that's more than $450 a year!
Cutting cable isn't for everyone. If you're a big sports fan, for example, it may be hard to find the games you want online. But slashing—or cancelling—your cable plan is a great way to save money.
Tip
If you want to explore the world of web-based TV, check out this amazing list of online options: http://tinyurl.com/byebye-cable. (It even includes sources for sports.)
Doctors and Drugs
Few things can blow a budget like unexpected medical bills. Even if you save and invest, unforeseen health problems can smash your financial plans to bits. And a medical crisis can be devastating for those who don't have their finances in order.
If you have health insurance, here are three steps you can take to make sure you're not paying more than you have to:
Understand your policy. Insurance rules can be confusing. Take the time to read your policy to be sure you grasp the basics. At the very least, know how your plan works in the case of emergencies. Any time you have a concern about coverage, call your insurer and ask questions.
Read your bill. Don't assume your medical bills are accurate. Take time to read them, and ask about anything that seems wrong. Nobody cares more about your money than you do, so take charge of the situation.
Strike a deal. Always ask for a discount. Some places will offer them and some won't, but it never hurts to ask (see the box on Frugal Tactics Anyone Can Use). You may be able to save big bucks by picking up the phone and negotiating with your provider. (For more on negotiating, see Why Frugality Matters.) If they do agree to