Like many people these days, I was recently laid off. So, my husband and I have been looking ways to lower our finances so we can still enjoy life to the fullest, but with fewer bills, hopefully giving us more money for things like vacations and saving for our retirement. These are five excellent ways anyone can try to dramatically decrease your monthly bills.
Mortgage Refinancing
If you own a home, your mortgage may be your most significant monthly payment. Refinancing your mortgage is one way to reduce this expense. Refinancing can also provide you with more favorable terms and a lower interest rate.
But because you might have to pay closing costs when refinancing your mortgage, refinancing might not be wise if you plan to sell your home soon. You could try using a helpful resource like SoFi.com to determine whether refinancing makes sense concerning current mortgage rates.
Reduce Your Debt
You can reduce your monthly debt payments by paying off your debt. You could try these two effective methods to help you pay off your debt more quickly:
- Debt snowball: With this debt repayment strategy, you concentrate on paying off your smallest debt and make minimum payments on your other debts.
- Debt avalanche: With this method, you pay down your highest-interest debt first while only making the minimum payments on your other debts.
Lower Your Electricity Costs
Electricity is expensive. But, there are ways to lower your monthly electricity bill without compromising your comfort or having to spend your days shivering underneath a blanket.
One way to reduce electricity costs is to install a smart thermostat. My husband and I just got a Nest, which I love! A New thermostat is a smart thermostat, so it can learn your habits, such as by lowering the heat or the AC when you leave the house.
According to research, using a thermostat like the Nest could reduce your monthly expense by 10% to 20%. You can save money all year since the thermostat could lower your heating and cooling costs. A smart thermostat like a Nest thermostat can make it easier to save money since it can learn your habits, and for example, lower the heat when you are not home.
Renting with others is another great way to lower your electricity bill. Find rooms for rent in Philadelphia, NYC, Austin, or anywhere else in the US with platforms like SpareRoon.
Another way to reduce the amount of energy you use is to have your electricity provider audit your home’s energy usage. Many providers offer this service without charge, and you only need to make an appointment. Your electric company can share with you cost-cutting measures you can take immediately and in the long run. You might also learn where energy is “leaking” from your house.
Reduce Your Grocery Budget
Food is a huge expense and prices have been rising recently. These are ways you could possibly reduce your grocery bills:
- Make a shopping list: Food retailers can entice you to make impulsive purchases by strategically displaying certain products in easy-to-see locations. You can avoid falling into their trap by using a shopping list so you will only buy what is necessary. Also, don’t go grocery shopping when you are hungry! You might find yourself grabbing tasty-looking items that you don’t need.
- Create a meal plan: Plan what you’ll make each week and base your shopping list on that.
- Eat leftovers: When you cook a meal, try to make enough for two to three meals, so you can save time and money.
Shop Around
Comparison shop for the services your use regularly so you can lower your monthly expenses. Be sure to compare prices for expenses like your phone, Internet service, auto insurance, and homeowner’s insurance . Try to find two or three vendors per category and compare their fees. It’s possible you might find lower prices for your usual expenses and can save money as a result.
You could also do this for other services you often use. Shop around, and perhaps you could wind up paying less for your monthly bills by finding a less expensive hairstylist or cleaning service, for example.