These Are The 4 Reasons Why Your Personal Bills Are So Expensive

Do you get a headache every time you check your bank account at the end of the working month? It sounds like your bills are far too high. Here are some of the ways you can tackle this issue head-on and improve your finances. 

Your First Bad Habit

We say first because this is the one that is probably the biggest drain on your accounts. It will have been with you for a large percentage of your life, and the money will have been pouring down the drain during this time. The bad habit could be anything. It might be your favorite brand of Ben & Jerry’s ice cream that you just have to buy each Friday night. This may not seem like a lot but that could be two hundred and sixty annually! Or, how about if you like a bottle of wine each week? This could be double. Now, we know what you’re thinking. These bad habits aren’t easy to shake and that’s certainly true. But there are always possibilities to consider like the Sinclair Method that will help get the monkey off your back for good. 

One of the issues with bad habits is that you have to be careful you don’t lose one and replace it with another. For instance, you might manage to stop buying the ice cream only to find that you develop a craving for coffee. Of course, bad habits can be even more damaging than this. In 2022 gaming will officially be recognized as an addiction and with the amount of money you can accidentally spend on Fortnite, we’re not surprised! 

Your Big Energy Spend 

How much do you spend on energy each year? The answer is probably too much and if this is the case, you do need to explore ways to cut back. Luckily, there are lots of possibilities but one of the best is certainly renewable power. Within the past ten years, the cost of home solar panels has decreased by nearly 75% so now is the perfect time to jump on board this trend. Furthermore, with renewable energy, you can actually trade the electricity you generate and save even more on your bill thanks to smart tech. 

Your Failure To Search The Market

It’s important to remember but easy to forget that it is a buyer’s market. Let’s look at insurance to see how this works and a key mistake you could be making. When you sign up for an insurance plan for your home or your car, you might be asked about the possibility of an automated renewal. At first glance, this seems attractive, because it means you don’t have to worry about setting it up annually and speaking to a service provider. However, be careful here. If you set it up to automatically renew, you’re not going to take the chance to shop around the market. 

You should do this because it’s likely that a year from now your situation will have changed considerably. The market will have changed too and there could be more options than were previously available. One of the more high profile insurance companies may now be able to offer you a better deal. Even if you’re not interested in switching, this still provides you with crucial leverage. By keeping your provider on their toes they may offer you a better deal to maintain their relationship with you as a customer. 

Your Lack Of Budget

Of course, one of the ways to make sure that you are saving money is to plan your spending. To do this, you need to set up a budget. You should calculate all the money you make whether you are on a single or double income. Think about the investments and side hustles too before you get to your final sum. Once you’ve done this, start subtracting all the bills that regularly come out your account each month. This will include energy spending, shopping, tax and more. When you’ve calculated all of these, shave off another ten percent for unexpected costs. 

The amount you have left over is what you have to spend through the month. But wait, because you should half this and put one part into savings. Now, you have the real number you should be spending on luxuries each month. It might be quite a lot lower than you’d hoped but you have to keep it in mind. If you don’t you’re going to go over your budget a lot and this will drive up your bills. 

The good news is that with the tips we’ve provided, you’ll be able to cut down individual bills a great deal. This is going to give you more to save and spend throughout the month. You might even notice improvements to your quality of living

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