The business model is a system of recurring revenues. Recurring revenues are a wonderful way to make money if you own a business. To best understand this system, think about your cable or satellite TV. Each month, you send a payment to your provider to receive your programming. How many times did the provider have to sell you on their service? One time! How many times do you pay for the service. Every month.



Of course, the company has to provide you with excellent service and programming every day, but they only have to sell you once. After you buy, you're most likely going to remain a long-term customer. That's how recurring revenues works. When a company sells you on their service one time and you send in a check every month, they make a fortune.

So how can this help you cut your expenses? Simple. Look for services you've subscribed to once and continue to send in money every month. Then look at how many of those you really need. If it's tough to cut some out, think about this: If it's a great money making system for the company, it's a huge money-draining system for you.

Sure, some of your recurring revenue accounts are indispensable, such as water, electricity, and gas. In those cases, look for ways to cut back on your usage to lower your monthly costs.

But here are some of the most overlooked monthly bills that you could easily cut back:

* Extras from your phone company, such as call ID, call forwarding, voice mail (it's much cheaper to buy an answering machine than to pay monthly for voice mail), etc. Look over your phone bill and ask yourself, "Do I really need this service?" These little add-ons really add up over time.

* TV. Move your cable or satellite service to a lower subscription rate. Or, better yet, try going without it for a while. Yes, you can live without TV ... and probably should if things are tight. Let TV be a reward you give yourself when you're in better financial condition.

* Your cell phone subscription. These can be some of the biggest money hogs around. See if you can lower your rate plan. You can usually do this without incurring any charges.

* Internet. Look for a cheaper monthly plan. Many of the cheaper services offer awesome service at a much lower monthly rate. Shop around and see if you can lower your costs. And some people pay a lot for hosting service for websites that aren't producing any income. Ask yourself if you really need the websites.

* Financing. If you think about why companies offer financing on their products, it's not just because it offers you a convenient way to pay. It's because they make a lot of money on the deals. Any time you buy a product on finance plans, whether it's a car, a refrigerator, or anything else, you're choosing to pay more for the product. Of course, 0% interest loans are a great tool, but some of these come with hidden charges, so you have to be careful. Try to pay in full all the time. You'll save big.

There are many other subscription plans that sell you once and bring in money every month. Go through your bills and see which ones have a recurring revenues type model. Then evaluate each one and see where you can make cuts.

And remember, you're not just making a one-time cut. It's a cut you'll enjoy every month from here on out!