Time to assess your bills

Have you taken a look at your bills lately? I'm not talking about merely glancing at them, but really analyzing your monthly bills with the objective of reducing them.

It's not an easy task. I should know, as someone who used to routinely contact her utilities to inquire about possible savings. Unfortunately, I have neglected this check in recent years since I've had kids and less free time. But I'm still convinced it's a worthwhile mission, especially during this economy and with rising prices on everything from fuel to food.

Yes, it is possible to cut your monthly expenditures without impacting your quality of life. Saving doesn't always have to be about choosing bare-bones cable or sharing a cell phone with a family member. It's often about finding wise ways to save on your monthly costs such as utility bills and switching to companies or plans that provide better deals than what you're currently getting.

Here are some steps to begin:

Know What You're Currently Spending

One of the first steps to developing a sensible budget is to evaluate all of your bills. Are there listings that don't make sense or services that you don't need? One day when I evaluated my phone bill, I caught a charge for a legal service that I never approved. It turns out I was sent a free trial from a business that was affiliated with the phone company and was automatically enrolled in this program on a permanent basis. Because this was done without my consent, I contested this charge. It took many months, phone calls and faxes to both the phone company and law office, but I was finally able to get a refund that was worth hundreds of dollars. It pays to ensure you are not being erroneously charged for services and are paying only for what you need.

Determine Your Utility Needs

It's amazing how often we pay for services that we don't use. Are you really getting your money's worth out of those movie channels that are a part of your cable package, or would it be more economical to pay for those action films and date-night dramas individually via Pay-Per-View or On Demand television? Is call waiting a feature you use often on your phone or was this something added years ago before the cell phone took precedence as your main method of communication? Do you still even need your land line? Take stock of your bills and you may be surprised to discover that there are some that you can eliminate altogether.

Do Your Homework

With utilities in many areas becoming deregulated, you may now have a choice on what company supplies your electricity, gas, television service and so on. But make sure to be thorough in your investigation of new companies and be weary of signing any long-term contracts. Years ago, after switching from a predominant gas company to one that popped up after deregulation, I discovered my bill increased. Sometimes, even with a lower utility rate, there are added fees, taxes and other unexpected costs that can lead to a bigger bill than before. Unfortunately for me, I had locked myself into a two-year contract. It is very important to shop around and make sure your comparisons are accurate. The services and features must be identical or similar so you can get an accurate snapshot of what your monthly bill will look like.

In addition to re-evaluating your utility and service providers, there are a number of simple steps you can take to reduce your gas, electricity and water usage. Even implementing a few of the ones on this list can save you hundreds of dollars a year:

• Replace incandescent light bulbs with compact fluorescent bulbs, which are energy-efficient and put out less heat.
• Install a programmable thermostat, which will automatically control your heating and air conditioning and save on these costs.
• Install low-flow shower heads, which help reduce water usage and costs.
• Weatherstrip doors and windows and insulate attic access doors and garage doors to help reduce air leakage from the house.
• Only run the washing machine and dishwasher when there is a full load to save on water use.
• Be meticulous about controlling the temperature of your water heater and thermostat. For optimum efficiency, it is recommended that your water heater is set at 120 degrees. In winter, thermostats should be set no higher than 68 degrees during the day and 62 degrees at night or when you're away from the house.
• Keep vents and doors closed in rooms that are not being used.
• Install ceiling fans to help cool rooms and reduce air conditioner use.

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