Penn Mutual News

Recapture Hidden Wealth

Automated bill pay is a time-saving convenience, but it doesn’t always let you take a hard look at just what you are spending each month on your lifestyle choices, which, according to the 50-30-20 Rule, should amount to no more than 30 percent of your monthly budget. It is important to review your spending habits at least monthly, especially because you might not realize exactly what you’re spending on all the bells and whistles that come with your cable or phone contract, or just how many times a month you dine out. Once you do, you’ll see that there are some simple steps you can take to improve your financial fitness and recapture hidden wealth.

Here are some to start with:

1. Run Out of Your Gym Membership

If you’re among those who have a gym membership but never use it, save the monthly dues and stay fit in other ways. Take walks, hop on your bike, start using free weights and exercise bands you keep at home, and see if you don’t end up saving time and exercising more.

2. Negotiate With Your Cable Provider or Cut the Cord Entirely

We all love the endless viewing options available on cable TV, but you can pay a steep price for all that channel flipping. Consider checking with your provider regularly to see if you qualify for any discounts. If you only watch certain shows, drop cable altogether and go with streaming services such as Netflix, Hulu or Roku.

3. Survey Your Cell Phone Statements

Do you find yourself only using your cell phone for occasional texts, or is it attached to you at the hip? Regardless of how many minutes you tally a month, you stand a good chance of scoring a better plan these days because the competition among providers just keeps increasing. Many providers will pay off the balance of your contract and offer you a lower-cost monthly deal–and a phone upgrade too.

4. Make Dining Out a Special Occasion, Not a Regular Event

Not only will you be able to shore up your savings by cutting back on this expensive habit, you’ll gain more control over your diet. Preparing your own food allows you to curb calories and eliminate unhealthy ingredients many restaurant meals are notorious for. Not ready to completely kick the habit? Eat at a fraction of the cost by sitting in the bar area: here you’ll find plenty of fine fare offerings at smaller sizes and slimmer prices. If you still want a “weekend reward,” substitute a dinner with lunch or brunch.

5. Have Your Movie Nights at Home — Not Out

Treat yourself to the latest releases once or twice a month, not every weekend. Save the hefty cost of a movie theater ticket by waiting a few months until you can rent a movie for a fraction of that, or stream it for free.

This article is provided for general financial education and is not to be construed as financial advice or strategy. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any financial product or used as the primary determinant of the best strategy on how to save. Always consult with the appropriate financial professionals about your specific circumstances and individual goals.

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