Step #1: Write down every monthly bill you have including the amount. For loans, you should include the interest rate you are paying.
Here is a list of common monthly bills:
- Rent or Mortgage
- Credit Card debt
- Car loans
- School loans
- All other debt
- Utilities (electric, gas, water, trash service)
- Internet, cable, home phone, and cell phone
- Netflix and other subscription based services
- Insurance (car, life, health, homeowners)
To make sure you haven’t missed anything, check your credit card and bank statements.
Step #2: Once you have a complete list, ask the following three questions for every item on the list:
- Do I really need this?
- Do I need exactly what I have?
- Can I get what I need for less?
In the podcast I cover a lot of examples of ways to save money on monthly bills. You’ll also find a lot of ideas in the resources listed below.
Step #3: Execute. Once you have your list and know how you can save money, it’s time to make the changes. This often involves a lot of phone calls.