Finding different ways to save when you're strapped for cash is tough, especially when you factor in the high prices of essentials and more costly debt. Everyday expenses like groceries can't simply be cut from our budgets. I asked experts how to save money even if you live paycheck to paycheck. They shared one method that could definitely pay off: Negotiating your bills.
"Internet, phone, auto insurance, all these things can be negotiated," said Jen Smith, author and host of the Frugal Friends podcast. "It's not like going to Gap and buying a shirt. You can't negotiate there, but so many of the things we pay for can be negotiated."
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Here's how taking a few minutes out of your day can help you find extra money in your monthly budget to put aside and save.
Why you should negotiate to cut down the cost of your bills
It's always worth trying to lower the cost of your daily expenses and services. While it may seem challenging to get a cheaper rate on housing, electricity, phone and internet, you never know until you make the call. Even if you can't lower your bill permanently, some businesses are willing to reverse certain charges or offer temporary discounts.
"Sometimes I get scared about asking, but the worst thing they can say is no," said Daniella Flores, a side hustle expert and the founder of I Like to Dabble. Start by thinking about the bills you pay every month, then call your provider or landlord to make the case for why you deserve a lower bill. There's lots of advice on how to go about the request. Fundamentally, it's about why you're doing it.
Chances are you won't cut your rent in half, but even if you can lower your bill by $20, that's money you could be saving. If you stash that money in a high-yield savings account, you'll earn interest that can add up over time.
Tips for trying to negotiate essential costs in this economy
First, think about ways your provider may be able to cut your bills down, like fees or additional features you don't need. You may qualify for introductory offers even as a longtime customer. You can also inquire about discounted rates based on financial hardship.
If you're trying to negotiate housing costs, remember that some landlords may waive lease renewal or security deposit fees. If you've been renting your home or apartment for a few years, it's worth asking for a lower monthly payment or a smaller rent increase.
Flores recommends pointing out that you're a responsible tenant who makes on-time payments. You might also share things the landlord hasn't been accountable for, like unresolved repairs, in hopes of a lower monthly payment. Some apps can help you spot savings for things you didn't even consider, too. CNET's top budgeting app, Rocket Money, can help you negotiate bills.
Tip
If you're a loyal customer of your internet or cellphone provider, check to see what introductory or welcome offers are available when asking for a lower price. Companies like to retain customers and could be flexible if you ask.
Read more: How to Negotiate a Better Deal on Your Bills Using AI
The savings can add up to even more cash in your pocket
Sure, negotiating your bills requires some time and effort on your part. But advocating for yourself can be a solid win that helps you put more money in your pocket. Even if you cut $20 a month by scoring a lower rent payment or a discounted rate on your utilities, that adds up to $240 per year. Each month, transfer those funds into a high-yield savings account that earns decent interest.
Right now, the best high-yield savings accounts are earning up to 4.45% APY. If your current savings fund isn't getting good returns, consider swapping banks or opening an additional low-risk account elsewhere.