MONEY-SAVING

Tips

BILLS

Look over your monthly bills and separate the ones that are basic necessities, like gas, electricity, and water, from the ones that might be optional, like cable TV or magazine subscriptions. (Credit card bills are discussed in another flier.)

On the necessary bills, see if there are charges that you could cancel, like optional phone services such as call waiting.

It is up to you to decide which of the optional bills you can do without. Keep in mind, though, that anything we have to pay for month after month can add up to a big expense by the end of the year, and can become astronomical in ten years. For example:

Cable TV

If cable costs $40 a month, that’s $480 a year or $4800 after ten years. (Add two premium channels and it’s $840 for the year.) How many things do you have in your house that you’ve had for 10 years? Did any of them cost $4800?

Some expenses, like cable TV, seem hard to dispense with because we’re so used to them. It can be hard to unlearn our habits, but in the long run we can benefit from spending less time tuned into the media culture and more time reading (especially if it’s thoughtful, moving, or well-crafted work -- which you are less and less likely to find in the movies or on TV anyway); talking with friends and family; being outdoors; playing sports or games or music; being creative; going to free galleries or plays or concerts to enjoy the products of other people’s creativity; and just generally trying to enjoy one another more.

REDUCE
the necessary bills

HEAT: Bundle up. An investment in extra blankets will pay off. Insulate, even if it’s just stuffing a towel under the door. Try a thermostat setting of 60 - 62 during the day and 50 - 55 at bedtime (or when you’re out) if your health allows it.

ELECTRIC: use a fan instead of air conditioning in the summer. Try to turn off lights that are not in use.

BASIC PHONE: In New York City, local call cost 10.6¢ each. After 9pm and on Sundays, they are 6.4¢, and after 11pm and on Saturdays the cost is 4.3¢ per call. (Worrying about this may sound silly but it does add up.) Budget your phone phone use: decide how much you want to spend per month and set a daily limit for yourself.

LONG DISTANCE: Buying pre-paid long-distance cards is often cheaper than having a long-distance carrier and avoids the temptation of running up too many calls. Look for a card that offers about 3 hours of domestic calls for $10. Watch out for high connection fees and other hidden costs.

for help:

If you’re already behind on bills, call the company to set up a payment plan before the service is cut. Once the utility is turned off, there’s usually a fee to have it turned back on, though that fee may be waived once in a year. Ask. Always ask what your rights are, what penalties they are willing to drop, and what billing options or discounts may be available to you. Don’t let yourself be intimidated by threats. If you’re not satisfied with their answers (or even if you think you are) contact a social service agency or non-profit organization for advice. For help paying energy bills, contact HEAP (Home Energy Assistance Program) at 1 877 472 8411.

The Phone Company

The phone company is one of the biggest hucksters around. Every time we open our monthly bill, there are ads inside for premium services (like caller I.D., call waiting, etc.) On TV, the sales pitches continue.

We’re used to thinking of the company that provides us with a phone as a basic utility and not as a sleazy, pushy salesman. We might feel that we’re only being offered safety and convenience, which are worthwhile even if the cost is a little more.

However, the phone company is a big, for-profit corporation that only exists to make money. When a business tries so hard to get us to buy something--and Verizon is relentless!--we should become suspicious of whether it’s looking out for our interests or its own.

Of course, we may find some of the optional services useful, and choosing to purchase them is a personal decision. Keep in mind, however, that anything we pay for month after month can add up to a big expense over time. Ask yourself if it’s worth it. Having convenience and perks is nice, but having money in your pocket is nicer!

SOME PREMIUM PHONE SERVICES
(and why you may not need them)

Call waiting, $62 a year: (People who get a busy signal usually call back.)

Caller I.D. and Call Intercept , $156 a year combined: (You can use an answering machine to screen calls.)

Voice Mail, $75 a year: (An answering machine costs about $20 and will last several years.)

Wire Maintenance Plan and Phone Protection Plan, $95 a year combined: (Only the wiring that is inside your house is not already covered. Plus, the company is betting nothing will go wrong or it wouldn’t be offering to fix it for free.)

Pay Phones

Pay phones in New York used to all be 25¢. Some are now 50¢, with unlimited time, which can be a good thing if you plan to talk for a while. But if it’s just a short call, you can still find 25¢ pay phones: you just have to look.

It's your money. Don't make it their money.

The Common Wheel
P.O. Box 371
St. George Station
Staten Island, NY 10301