Cutting Costs: How to Reduce Your Monthly Expenses
By Arlene H. Hull
Content Provided by LIFELines
Trying to stretch your income from one end of the month to the other can be a challenging and frightful task. Even if you live in base housing, you still face the rising cost of groceries, clothing, auto insurance, automobile payments, telephone, and childcare. But don't despair, there is help. Discounts and special rates for many consumer products are available to members of the military. By doing the research and knowing what questions to ask, you can find ways to stretch your paycheck to a more comfortable fit each month.
One of the best, and possibly the simplest, ways of cutting monthly expenses is to combine two or more expenses. By combining several payments into one, you eliminate additional interest and handling charges and sometimes benefit from package deals offered by companies.
Insurance
Do you have automobile insurance, homeowner's insurance, renter's insurance, and life insurance underwritten by several different insurance companies? Look for one that will provide you with all the coverage you need in one package. And be sure to ask about special rates or discounts for military service people.
Utilities
If you live off base, what about your household utilities? When you put down a deposit for those services, did you ask about a waiver for deposits that some companies offer to active-duty service members? If you deploy and your family won't be staying in the home for an extended period of time, ask about vacation or unoccupied dwelling rates.
Telephone
Do several people in your household have cellular telephones? Look into combining all of the service plans into one "family plan" offered by most cellular phone companies. Some even offer free calling from one "family plan" member to another. And most cellular companies offer packages that include free long distance, making it feasible for you to not subscribe to a long-distance company for your residential telephone.
Credit Cards and Retail Store Accounts
Here's a big one when it comes to combining debts. If you have several different credit cards and are not paying the balance in full each month, chances are you are paying too much in finance charges. Look for a credit card with a low interest rate and a balance transfer option. Or maybe try a debt-consolidation loan. When shopping for loans, remember that credit unions usually have the lowest interest rates.
Registrations and Taxes
If you purchase a home at your new assignment but are a legal resident of another state, you may be able to apply for a reduction in property taxes. You may also qualify for a waiver for vehicle taxes and registration fees if you live on base. Ask your local civilian tax office or the legal affairs office on base about the rules that apply in the state in which you live.
Always remember to ask about discounts, waivers, and packages that might be available to you simply because you a member of the military. If you don't ask, you may never know.
© 2005 Military.com.
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