Learn how to negotiate bills and lower expenses with these top strategies.
Strategies for Negotiating Bills
When it comes to negotiating bills, there are several strategies that can help you lower your monthly expenses. One effective approach is to regularly review your subscriptions and services every six months to identify any unnecessary expenses that can be canceled. This can help you stay on top of your spending and avoid paying for services you no longer need. Additionally, making a personal connection with the customer service representative and being upfront about your financial circumstances, such as job loss or medical hardship, can encourage them to go above and beyond to help you lower your bills.
Effective Negotiation Strategies
– Regularly review your subscriptions and services every six months to identify unnecessary expenses
– Make a personal connection with the customer service representative and be upfront about your financial circumstances
– Ask about specific deals you might be entitled to, such as student, military, or veteran discounts
– Mention that you’re considering switching providers to encourage them to offer you a better deal
– Be persistent and ask to speak with a manager, who often has more discretion and ability to lower your bill
By implementing these negotiation strategies, you can potentially save a significant amount of money on your monthly bills. It’s important to take the time to negotiate with your service providers, as the savings can add up over time and help you better manage your finances.
Lowering Monthly Expenses
After having a baby in August 2020, Loren Jerae and her partner realized that quitting her job to stay at home with the baby would be more affordable than paying for daycare in a big city like Charlotte, NC. But the switch was an adjustment. “We took a pay cut,” Jerae told TIME. “I stopped working and then we were on a single income household and so from there, it was just what ways can we cut back? What ways can we save money?” Her mom recommended she take a look at her bills and call the various companies to ask if they’d be willing to lower her bills. It worked. It’s a tactic she now uses like clockwork every six months. Though inflation shows signs of lowering, many Americans are feeling the pinch of high prices. A survey from the Federal Reserve released in May found that two-thirds of Americans said that rising prices have made their financial situation worse. Read More: How To Actually Buy Groceries Right Now But there’s one area where many Americans could actually be paying less: subscription bills. When it comes to services like streaming, internet, phone lines, and WiFi, companies are loath to lose business to competitors and often more than willing to cut customers a break when it comes to prices– as long as you know what to ask for. “All these companies…really want your service. They’ll figure out some ways to sweeten the deal,” says Jerae, who posted a TikTok earlier this year sharing her experiences negotiating her bills. “A lot of people just don’t know [that] because they don’t want to take the 15 minutes to call.” Here are some tips for how to lower your monthly bills: Experts tell TIME that most people aren’t on top of their spending and budget. “Half the people aren’t even aware of the charges coming out of their checking account,” says Stephen Roth, a financial planner with Limestone Financial Group. A 2021 study from West Monroe found that the average American spends $273 on subscriptions each month—but is less aware of how much they spend on subscriptions compared to years past. Experts recommend you take stock of what service you’re paying for every six months, and cancel what you might no longer need. “A lot of the little charges add up,” adds Roth. Read More: How to Reset Your Thinking Around Spending Money, According to Experts Though many people might be phone-averse, taking a few minutes to sit down and call your providers can lead to big savings. Know that it might take some time to be connected to someone who can help you. If you mention you’re looking to switch providers or cancel your subscription, the representative will transfer you to a client retention department. “Usually the first person that answers isn’t the right person,” says Michelle Gessner, a financial planner with Gessner Wealth Strategies. Once you’ve been transferred, ask to speak with a manager. “A manager almost always has more discretion and more ability to issue credits and lower your bill than a regular representative who you come to first contact with,” says Gregory Guenther, a financial planner with GRANTvest Financial Group. There are a few strategies you can take when trying to get your bills lowered. Jerae usually just mentions that the bill is getting too high for her to afford. “I call them and say, I’ve been with y’all for X amount of years. I love y’all. I love the service, however, just based on our bills, I’m reworking my budget, and I just can’t afford it anymore. What can y’all do?” She’s had success on many occasions: she had her phone bill lowered from $110 to $87 for three lines—making one of the lines virtually free. She also recently received a $10 discount on her internet bill and was able to get a $1 promotional deal from Hulu when she mentioned she was considering canceling her subscription. And even when providers were unable to give her a cash discount, they helped her out in other ways, she says. Once, when her phone provider was unable to lower her bill, they gave her a free Netflix subscription—saving her money on another expense. Be upfront about your personal circumstances—whether that be a job loss, or medical hardship. “If you make a personal connection, especially when you have a decision maker on the phone, that encourages them to go above and beyond a little bit more,” says Guenther. Consider asking about specific deals you might be entitled to—students, military personnel, and veterans are often eligible for certain discounts. And of course—mention you’re looking to switch providers. “They usually want to retain you as a customer,” says Roth. “So there is room for negotiation.” Though taking the time to sit on hold might feel like a chore in the moment, the savings have the potential to
Negotiating Techniques for Specific Bills
Phone Bills
When it comes to negotiating your phone bill, it’s important to be upfront about your financial situation and express that the current bill is becoming unaffordable. Mentioning your loyalty as a long-time customer and the possibility of switching providers can also encourage the representative to offer you a better deal. Additionally, inquire about any specific discounts that you may be eligible for, such as those for students, military personnel, or veterans.
Internet and Streaming Services
For internet and streaming services, it’s essential to do your research and be aware of any promotional deals or competitor offers that you can use as leverage during the negotiation. Express your willingness to cancel the subscription if the price cannot be lowered, as this often prompts the representative to transfer you to the client retention department where you may have more negotiating power. Mentioning your budget constraints and the potential to switch providers can also lead to discounts or promotional offers.
By employing these negotiating techniques, you can effectively lower your monthly bills and save money in the long run. Remember to be persistent and assertive, as taking the time to negotiate can result in significant savings.
Long-term Financial Planning
Long-term financial planning is essential for ensuring financial stability and security in the future. It involves setting clear financial goals, creating a budget, and making strategic investment decisions to build wealth over time. This process requires careful consideration of various factors such as income, expenses, debt, and savings. It also involves anticipating future financial needs, such as retirement, education expenses, and healthcare costs, and developing a plan to meet these needs.
Setting Clear Financial Goals
One of the first steps in long-term financial planning is to set clear and achievable financial goals. This may include goals related to saving for retirement, purchasing a home, funding a child’s education, or building an emergency fund. By setting specific and measurable goals, individuals can create a roadmap for their financial future and track their progress over time.
Creating a Budget
A crucial aspect of long-term financial planning is creating and sticking to a budget. A budget helps individuals to manage their income and expenses effectively, identify areas where they can save money, and avoid unnecessary debt. By tracking spending and prioritizing essential expenses, individuals can free up funds to invest in their future financial security.
Strategic Investment Decisions
Investing is a key component of long-term financial planning. By making strategic investment decisions, individuals can grow their wealth over time and prepare for future financial needs. This may involve diversifying investment portfolios, considering risk tolerance, and seeking professional financial advice to make informed investment choices.
Anticipating Future Financial Needs
Long-term financial planning also requires individuals to anticipate and prepare for future financial needs. This may include planning for retirement, saving for children’s education, and setting aside funds for healthcare expenses. By considering these future needs and developing a plan to meet them, individuals can build a strong financial foundation for the long term.
In conclusion, negotiating bills and lowering expenses is a strategic approach to saving money. By researching, preparing, and confidently communicating with service providers, individuals can successfully lower their bills and improve their financial situation.