Noel Whittaker writes exclusive weekly blog updates for the Ban Tacs Group, with IN8 Business Advisory, a member of that group. Here, he talks about how you can save more if you are able to track and take note of important dates.
This column of Noel Whittaker’s blog is a good reminder that people need to remind themselves of when bills are due, especially as we no longer get our MV registration stickers through the mail to remind us that the registration is due for example…
“Many Australian households are facing cash flow problems thanks to the COVID-19 crisis. Family incomes have reduced at the same time as costs such as gas, electricity and insurance are going up. To make it worse, many businesses tend to rely on your inertia, and entice you into fixed contracts that are made worse by hefty fees for late payment. I’m also hearing reports that kids have been signing up for new streaming TV services during lockdown, lured in by free trials.
Well, as my father always said, “It’s the squeaking wheel that gets the grease.” So take the initiative and start calling the people you are dealing with to try to negotiate a better deal.
You will be amazed at the results, especially right now. Few are advertised, but there are huge savings to be had, even on big-ticket items like your mortgage – I have heard of people shaving thousands off their annual cost. Visit your bank or broker in person if you can – it’s harder for them to say no to your face.
The real art to these negotiations is to do it when you have the most leverage, which is when your contracts are up for renewal each year. Try using a free service like GetReminded (www.getreminded.com), where you enter the renewal dates for all household contracts – everything from the mortgage, right down to those little ones like pet insurance and streaming services – they all add up. GetReminded then sends you reminders before each is due for renewal, avoiding late payment fees and, crucially, giving you time to push your existing suppliers or shop around for better deals.
Sydney nurse and mother of three, Rachel, decided to take back control and became one of the first users of GetReminded. She tells me that these simple, timely reminders have helped her cap a whole raft of bills. She estimates she saved her household over $2,000 in the first year by negotiating better deals from all her suppliers as her contracts came up for renewal. After that first year, she now uses the reminders to keep costs down to the lowest possible level by not letting suppliers creep her bills back up.
Below are just some of the savings you can access, if you can make the time and find the confidence to call:
- Mobile phones: Ensure you are not still paying off a handset you already own, or locked into an archaic data allowance – many mobile plans now come with unlimited data, and allow you to add your kids to the same contract so they can stream away …
- Broadband internet: As tech advances, try to get more data and faster speed for the same cost, or drop your cost for the same service, or both!
- Gas and electricity: Call about two weeks before your contract renews, leaving enough time to ring around – and switch companies – if needed.
- One COVID-specific saving is with Foxtel. If the kids have been signing up to new streaming services, buzz Foxtel and get them to lower your monthly fee.
- Every year, challenge your home and contents insurance. Rather than resenting your call, most insurers actually appreciate the opportunity to build a more detailed picture of your needs and home safety, which allows them to cap your costs.
Knowing that you have the best speeds, the most data, the best plans and the lowest mortgage rate is a great feeling. As renewal dates are spread across the year, it’s usually only one call a month and you will hardly ever be rebuffed. You will almost always save money, and at worst be validated that you have the best possible deal. Each call you make should give you positive reinforcement and the motivation to make the next call.”
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. noel@noelwhittaker.com.au
