We all have certain things on which we are willing to spend more, but basic services at home are not typically on the list. I have a passion for lowering my recurring monthly costs. Here are a few of my biggest money-saving tips for Houston area residents:
- Alarm Monitoring Costs – The big national alarm companies (Like ADT) charge a lot of money for ongoing monitoring and entice new customers with “free” or low-cost proprietary equipment (which won’t work with a different monitoring service) with a 2 or 3 year commitment. Consider installing a non-proprietary alarm system (such as Ademco) and secure your own low-cost UL listed monitoring service, which could save you hundreds of dollars per year. Why should the monitoring be UL listed? Because a UL listed monitoring service will qualify your home for a nice discount with your homeowner’s insurance company. (We get a 10% discount off homeowner’s insurance premiums and we pay around $100 a year for UL certified monitoring).
- Cell Phone Costs – We have Xfinity internet at the house, and this internet provider has a companion cell phone service that provides up to five lines with FREE voice and text with a small per-gigabyte cost for shared data. Because we use WIFI so much, our cell phone bill for three cell phones is typically just $15 a month… yes, you read that right!
- Meat! – Once or twice a year, we buy a whole ribeye at one of the big member’s only chains because the per-pound price is so low. I bring it home, cut it into “his and hers” steaks (one thick and one thin) and shrink wrap them with a vacuum sealer machine. They all go in the freezer, and we pull them out whenever we want a nice steak dinner. We also buy hamburger meat and chicken when it is on sale in bulk at the grocery store and do the same. A food sealer is a great investment if you use it and plan meals around what you have in your freezer.
- Fuel – We shop at Kroger because they sell gasoline and we use their loyalty card and receive their special offers, which we leverage to our advantage. Off and on during the year, they offer 4x fuel points on the purchase of a gift card to their store or a prepaid Visa card. We buy a $100 card, then fill up my big pickup truck’s empty tank with the card and take 40 cents off per gallon. Taking the quick surveys also gives you fuel points. I’ve done my homework on this idea, and I’m paying a lot less per gallon than I can find around town, even at Sam’s Club or Costco.
- Electricity – Houstonians (and many others in Texas) can choose from dozens of electricity providers, which can gain you a great deal if you know how to shop. Do not be deceived by the advertisements on TV or the comparison websites. If you find a company to which you’re interested in switching, call the company and tell them how many kilowatts you typically use per month and ask them for what they would bill you, including fees and taxes. (Many of these providers do not publish the exact transmission costs and only quote the per-kilowatt price or they neglect to tell you that only the first 1,000 kilowatts get the low unit price.)
- Cable & Internet – There is nothing wrong with calling your cable/internet provider and asking them what they would be willing to offer you TODAY in the way of savings to keep your business. Last time I did this, they cut my monthly bill for services by $20 a month AND gave me gigabit internet service at no extra charge. It never hurts to ask, so give it a try!
- TV Service – If everyone in your house is tech-savvy and agreeable to the idea or too young to have a vote, you can save a lot of money each month by cancelling TV service and having an internet connection alone, then subscribe to the shows or channels you enjoy watching. (Make this cord-cutting decision carefully though…my wife was not happy when I suggested it because it requires more work with remotes and boxes, and one must remember where to go and find channels or programs.)
- Home Security Video System – Last year I discovered a WYZE cams and set up a nice four camera home security video system for under a hundred bucks. Each camera has a mini storage card on it and records two weeks of high-resolution video which can be played back via their cell phone app… meaning no monthly cloud storage costs! They are WIFI enabled and just need a plug for power, so I placed them in the windows around our house and they work fine.
- Taxes – This last idea will not save you tax dollars today, but it will save you taxes when you are old and gray (I’m a poet and didn’t know it!). Consider maxing out your Roth IRA every year, and if you have a Roth 401k option, utilize it. Of all the money-saving tips shared here, this one is going to be the one you are most pleased with 20+ years from now. Need some help with a Roth IRA, a Roth conversion, or what is called a back-door Roth for high income earners? Give us a call at 832-474-7381. We are happy to help!
Please consult your tax professional