The Social Security tax credit of 2% has expired. If you’re like me, you feel it in each paycheck – especially since most Americans haven’t gotten a raise at all in the 2 years the tax credit was in effect. This means we are bringing home a significantly lower amount of money. In the interest of being positive in 2013 and trying to take action where I can, I decided to do things on my own to help ease the pain of this lower income. Here are three ways I saved some money on my monthly bills:
The expired tax credit will have me bringing home about $1,000 less this year. That is a pretty substantial amount of money! I did find a few ways to reduce the hit, and I feel a bit better.
Reduced TV/Internet bill – I called Comcast about new promotions for internet (I have basic TV, so there are rarely deals on that). Unsurprisingly, they didn’t have any – but it’s a good idea to call back every month or so to check. Canceling cable altogether is another option, especially if you use Netflix, etc. (Plus, cable is a monopoly which means the consumer always loses.) I received a “loyal customer” discount for $10/month, which is better than nothing and I wouldn’t have gotten it at all if I hadn’t called! Savings in 2013: $120
*Also consider canceling your cable subscription entirely to save even more money. I’ve been without cable for years, and save around $40-$50/month this way. If you use Netflix, Hulu, Roku, etc. you would likely hardly miss cable TV. Plus, it’s a monopoly which means the consumer always loses.
Reduced Utility Usage – I lowered the hot water temperature in my apartment, and have taken advantage of the warm weather to not run the heat. If you’re in a colder climate, you can do this in reverse in the summer by not running the air conditioning as much. I estimate I’m saving about $10 on normal monthly utility bill because of these efforts. Savings in 2013: $120
Updated Car Insurance Policy – I hadn’t looked much at my car insurance policy in the last three years, and when I did I realized it was ultra, extra, super-duper premium. So, a simple phone call let me still have excellent coverage and stay above state-minimums, but also save $14/month. Savings in 2013: $168
All of these efforts combined probably took a total of 45 minutes – and that’s only because Comcast had me on hold for awhile when I called. As a result of these easy, quick phone calls and adjustments, I’ll save approximately $400 this year.
It still doesn’t make up for the whole $1,000 that I’m missing out on from the expired tax credit, but it’s something. It’ll now feel more like $600 – that’s a noticeable difference, too!
Does this inspire you to try to save money in the face of reduced income this year? How will you do it? What are some other things I may have missed?
Side Note: I have to say, mostly because I can’t resist, that I’m very upset these tax credits were allowed to expire after only two years. They really helped out a lot of middle-class families – a group still struggling tremendously with stagnant wages, decreasing benefits, reduced property and home values, low returns on investments, student loans, and high costs of child care and college. By contrast – the tax cuts for the wealthy went on for over a DECADE! It’s such a racket.