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I also saved money this week by going to my bank to cancel the over-draft protection fee I was being charged, and the life insurance that I had on my account. We have life insurance now and that account is barely ever used. Even though money rarely goes into it, I was losing an extra $10/month in fees for things I didn't want or need. I hate to say how long I have known about these fees--over a year I am sure. So that's $100 at least I could have saved by being more proactive. I was unable to cancel the fees online, and it is hard to get everywhere I want to go in town with the kids along. That said, I have had plenty of days alone in town where I simply forgot or ran out of time. When I went in to do it I was very impressed that they reimbursed me $60 for the overdraft protection without my even asking. I had to call an 800 number to cancel the life insurance but I actually remembered. So in addition to saving $10/week from now on I also have an extra $60 for emergencies, for a total of $70 saved at the bank this week!
Just to pat myself on the back, I tallied up the monthly costs that I was able to eliminate in the last few weeks (these are not one-off savings but rather monthly charges that I was able to reduce or eliminate).
- cancelled an insurance policy, dropped cell phone bill: $66/mo
- put satellite TV on seasonal break: $75/mo
- cancelled overdraft protection and an unneeded life insurance fee: $10/mo
Feel free to double check my math, folks, but by my calculations that is an annual savings of $1812.00, all achieved in less than a few hours and with minimal inconvenience. That is more than an extra mortgage payment that we were allowing to go down the drain. If at all possible, I would like to make a prepayment of $1812.00 on our mortgage this year. Just for giggles I looked it up on my mortgage calculator: a prepayment in that amount would pay off our mortgage 7 weeks faster. We would save $133 in interest this period, but over the entire remaining amortization period we would save $1199.10 in interest--all with money that was being frittered away here and there without our ever realizing it. Doesn't it make sense to patch the holes if your boat is leaking?