One of the best ways to save money or start saving for retirement is to come up with ways to reduce your monthly bills. That's because you can then channel that money directly into an account earmarked for an IRA, a brokerage portfolio, or even a simple savings plan.

When it comes to cutting back, people look first to amenities like cable television, a large dining out allowance, and entertainment expenses. While eliminating these types of things can certainly help you save some money, it can be hard to stick to them. As is the case with dieting, denying yourself daily pleasures can often lead to a "binge" session, where you drop a large amount of money on an unnecessary item.

In addition to these entertainment expenses, you may want to consider saving money by increasing your insurance deductibles. These deductibles, or the amount of money you're expected to pay out-of-pocket for damages to your car or home, are often overlooked when you first sign up for an insurance policy, and if you go for years without any sort of accident or disaster, you may not know what the deductible is any more.

What Insurance Deductible is Right for You?

For most people, insurance deductibles range from $250 to $2,500, which means that if your home is hit by a falling tree or your car is in an accident, you will have to pay that amount before your insurance kicks in to pay for the rest.

If you make a large number of insurance claims, either because you are on the road a lot or your home is located in a natural disaster area, having a low deductible may be a good idea, since too many out-of-pocket expenses may end up costing you more money in the long run. But if you go years between claims, it may make more financial sense to increase the deductibles.

For example, if you have a deductible of $500 and you want to raise it to $1,000, assume you will pay $50 less each month for your insurance (all insurance companies and policies vary, so make sure you get all the details before you make a decision). In 10 months, you will have saved a total of $500 in monthly insurance premiums - the same as the difference between a $500 deductible and a $1,000 deductible. Every month you go without a claim after that is pure profit.

Of course, the purpose of insurance in the first place is to provide protection against the unknown. You can't predict how long it will be before an accident befalls you, your home, or your car, and being in a bad financial situation when disaster strikes is never a good thing. Like making an investment in the stock market, buying insurance is all about calculating risk. You have to determine what you can afford and be prepared for the consequences - both good and bad.

Raising your insurance deductibles isn't a get rich quick scheme, and it's not the ideal solution for everyone. But if you are considering your options regarding your monthly finances and what you can do to start saving more money, insurance premiums are a good place to look.