Better Budgets: Get Ahead With a Financial Spring Cleaning

How I keep my finances lean and businesses accountable.

COMMUNITY CONTRIBUTOR

I recently had the “go after the mediocre companies in my life” appointment I schedule for myself each year.

This time, my insurance company tried to add a 20% general inflation increase to my plan, which I got down to 5% after a phone call.

I also got my phone company to 4x my data package for +$5 a month plus give me a free new phone, which I will sell for $350. That makes my effective plan cost $31/mo this year.

This spring cleaning is a habit I’ve developed over the years as a budgeting coach. I work with clients every day who have allowed cobwebs like these to accumulate in their financial lives. Cobwebs are easy to attract. Large corporations spin them into our wallets with creeping fees, regular increases, and subscription-based services. These become an invisible drain on our finances.

It takes constant vigilance to stay on top of it, but who has time for that? That’s why I’ve developed a time-limited habit I suggest my clients do once a year, like cleaning out a closet. I encourage spending 30 minutes making these companies’ lives difficult and encourage them to be a little bit more competitive.

Some light pressure never hurt a multi-billion dollar company that has a market monopoly.

The key benefit is that it’s satisfying to get a win like this for yourself. Second, it reduces waste and harvests back dollars you can funnel towards a greater purpose, like time off, volunteering, or engaging in a creative passion.

Here’s how to do it: 

1. Call your providers and ask for better. Persist. If you hear no, ask at least three times. Be nice.

2. Bring comparables. Make it clear that their offer could be better and that you may leave them.

3. Shop their own plans to show them how they are already doing better. (Hot tip for telecom companies: their plans often get better every year, but they keep their loyal clients on older, more expensive plans that don’t offer as many features).

4. Speak to their loyalty department. Tell them you have genuine concerns about staying and ask what they can do to keep you.

5. See what’s new in the marketplace. Disruptors, competitors, and innovators are arriving all the time. See if the wait is over for this particular service and jump ship when the opportunity presents.

These are simple tips, but the hurdle I see most often is in clients getting it done. I suggest setting it as a recurring appointment in your calendar, making the goal small (30 minutes, tops), and planning something nice to do with the proceeds. For example, indulging in a special coffee or making a donation to your favourite charity before applying the rest to your household budget or savings.

With this, you’ll be balancing the pleasant with the slightly unpleasant and keeping your finances in top shape. Happy budgeting!

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