Bill paying can be a stressful event if you’re struggling to stretch your dollars and/or constantly worried about a financial shortfall. And most of us know that we absolutely must pay for some things, while others could maybe be eliminated from our expenses – but how can you tell which is which?

Luckily, you don’t have to. Two great posts from WalletPop.com outline household expenses that you absolutely must pay for (or else they’ll cost you far more in the future) and some that you can cut out for major savings.

Maintain Security and Cut Costs

Here’s a look at WalletPop.com’s suggestions, with a few of my own nuggets of finance savvy.

• Major insurance: Pay it. Car insurance, home insurance and life insurance (if you have dependents) are three payments that you shouldn’t feel guilty about. Losing everything in a fire or other natural disaster tends to cost far more than the monthly price of insuring what you own. And, as far as auto insurance goes, paying can protect you not only from theft but also from other drivers who don’t have insurance and wouldn’t be able to afford paying for accidents that they caused.
• A second (or third car): Get rid of it. Of course, this won’t work for everyone. But, sources note that the annual cost of owning a car (on top of any loan payments) exceeds $9,000. Does that make carpooling, biking, walking, taking public transportation, telecommuting or joining a car-sharing program any more appealing? Clearly, some areas of the country require individual vehicles more than others. But think about what you could do with all the money you’d save…
• Health care: Pay it. If you are not insured through your employer, the cost of providing your own health insurance can be overwhelming. But putting off doctor’s visits can lead to serious (and more expensive) health problems; failing to take medicine (like birth control) can lead to much more costly conditions (like having children); and, in worst-case scenarios, you might end up dead because of a reluctance to pay for doctor’s visits. So see what you can afford and figure out a system to make sure you aren’t neglecting your health.
• Fancy TV package: Get rid of it. In the days of Hulu and NetFlix, there’s really no reason to pay for super-duper television packages, unless you really have the money to do so. And don’t forget the wealth of DVD-viewing options at many libraries. Besides, unless you have some serious time on your hands, you probably aren’t watching all those channels enough to justify paying for them – and if you are watching that much TV, maybe now’s the time to take up a new hobby.
• Car repairs: Pay for them. Brakes and tires should be near the top of your worthwhile spending list – accidents that result from bad brakes or bald tires can lead to thousands of dollars of damage to your car, serious injuries and even death. As most people would agree, the potential risks just aren’t worth the small savings.
• Landline phone: Get rid of it. In the days of Skype and cell phones, why are you still dialing the house line? One source suggests you could save $600 per year by dropping your house phone – I think I’d rather have the money.

For more suggestions about what you do and do not need to spend your money on, check out the original posts (tagged above)!

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