Nowadays, everyone’s looking for ways to cut costs andstretch their income further. Fortunately,there are some simple steps you can take to reduce your household expenses withoutmaking radical changes to your standard of living. When combined, these minor adjustments can addup to significant savings each month.
1. Refinance Your Mortgage
For prime borrowers, mortgage rates are at or near historic lows. Depending on your current mortgage rate and the terms you choose, refinancing could save you a sizable amount on your monthly payments. There are fees and closing costs associated with refinancing, so you’ll need to talk to your lender to find out if refinancing is a good option for you.
2. Evaluate Your Insurance Policies
If it’s been a while since you priced home or auto insurance, it may be worthwhile to do some comparison shopping. Get quotes from at least three insurers or independent agents. Try bundling your policies to see if there’s a discount. And inquire about raising your deductible, which should lower your premium.
3. Bundle Cable, Phone, and Internet
You can also save money by bundling your cable, phone, and internet services. Shop around to see who is willing to give you the best deal. If switching is too much of a hassle, ask your current provider to match or beat their competitor’s offer.
4. Better Yet, Cut the Cord on Cable
In many cases, you can save even more if you cancel your cable subscription altogether. An antenna should give you access to the major stations, and many of your favourite shows are probably available on-demand through a less expensive streaming service subscription.
5. Revisit Your Wireless Plan
You can often save by switching from a big brand to an independent, low-cost carrier. If that’s not feasible, ask your current provider for a better deal or consider downgrading to a cheaper plan.
6. Adjust Your Thermostat
Turning your thermostat up or down a few degrees can significantly impact your monthly heating and cooling costs. To maximize efficiency, change your filters regularly, and make sure your windows and doors are well insulated.
7. Use Less Hot Water
After heating and cooling, hot water accounts for the second largest energy expense in most homes. To cut back, repair any leaks or dripping faucets, install low-flow fixtures, only run your dishwasher when full, and wash clothes in cold water when possible.
8. Lower Overall Water Consumption
To decrease your water usage, take shorter showers, and turn off the sink while you brush your teeth and wash your hands. If you don’t have a low-flow toilet, retrofit your current one with a toilet tank bank or fill cycle diverter. And irrigate your lawn in the morning or evening to minimize evaporation.
9. Conserve Electricity
Save electricity by shutting off your computer at night and installing energy-efficient LED light bulbs. You can minimize standby or “vampire” power drain by utilizing power strips and unplugging idle appliances.
10. Purchase a Home Warranty
While there is an upfront cost, a home warranty can provide some protection and peace of mind when it comes to unexpected home repair costs. Most plans provide coverage for major systems (like electrical, plumbing, and HVAC) and appliances (such as your dishwasher, stove, or refrigerator).
11. Outsource Less
From lawn care to grocery shopping to minor home repairs, we pay people to do a lot of things our parents and grandparents did themselves. To save money, try cutting back on the frequency of these services or taking some of them on yourself.
12. Prepare Your Own Meals
It costs nearly five times more to have a meal delivered than it does to cook it at home. And home cooking doesn’t just save money; it’s healthier, cuts down on calorie consumption, and can offer a fun activity for families to do together.
13. Plan Your Menu in Advance
Meal planning is deciding before you shop what you and your family will eat for breakfast, lunch, and dinner. It can help you lower your overall food bill, eliminate waste, and minimize impulse purchases. When possible, buy produce that is in season, and utilize nutrient-rich but inexpensive protein sources like eggs, beans, ground turkey, and canned tuna.
14. Plant a Garden
You can save even more on produce by growing it yourself. If you have space in your yard, start-up costs are relatively minimal. Gardening can be a rewarding and enjoyable (not to mention delicious) hobby for the whole family. And it could save you around $600 per year at the grocery store!
15. Review Memberships and Subscriptions
Are you paying for services and subscriptions you no longer need, want, or can utilize? Determine if there are any that you should suspend or cancel.
16. Give Homemade Gifts
Who wouldn’t appreciate a scratch birthday cake or tin of cookies? And if you enjoy crafting, Pinterest and Instagram are full of inspiring ideas. Show your recipient how much you care with a homemade gift from the heart.
17. Minimize Your Debt Payments
The best way to reduce a debt payment is to pay down the balance. But if that’s not an option, try negotiating a better interest rate. If you have a good credit score, you may qualify for a balance transfer to a 0% or low-interest rate credit card. Remember that the rate may expire after a certain period—so be sure to read the fine print.
18. Ask for Deals and Discounts
It may feel awkward initially, but becoming a master haggler can save you a lot of money. Many companies are willing to negotiate under the right circumstances. Always inquire about special promotions or incentives. See if they can price match (or beat) their competitors. And if an item is slightly defective or nearing its expiration date, ask for a discount.
19. Track Your Household Budget
One of the most effective ways to reduce household expenses is to set a budget—and stick to it. A budget can help you see where your money is going and identify areas where you can cut back. By setting reasonable limits, you’ll be able to reach your financial goals faster.
20. Get a Cash-back Credit Card
If you regularly pay your credit card balance in full, a cash-back credit card can be an excellent way to earn a little money back each month. However, they often come with high-interest rates and fees if you carry a balance. Commit to only using it for purchases you can afford.
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