Economies around the world have suffered greatly as a result of the ongoing pandemic. From income reduction to job losses, and mental health challenges, many people have undergone huge financial suffering for more than a dozen months. Nonetheless, life has to go on regardless of the tough economic times. Most people have learned to survive with the little they get by making budgetary cuts and adjustments to their spending habits.
Well, the pandemic aside, sometimes monthly bills can be quite frustrating to one’s bank account. Recurrent expenses such as water bills, electricity bills, internet, and telephone bills can feel burdensome if not annoyingly high. The truth is, lowering your spending on monthly expenses can make a huge difference to your financials. But again, it may not be a walk in the park for many people. Identifying areas where you can reduce your monthly bills can be nerve-wracking.
To avoid stressing over it, let’s walk together as we explore three easy ways to easily reduce your monthly expenses.
1. Reevaluate Your Energy Use
If you take time to evaluate, you might find that bills in these two areas are always high. Electricity is the major culprit when it comes to high utility bills. If energy bills have been hurting your pocket lately, there are a few things you can do. First, be sure to compare electricity and gas prices of your current provider to other energy providers. If you are paying higher rates per unit of electricity, switching to a new plan or provider can provide significant savings off monthly energy bills.
Moreover, those long showers we take, leaving lights unnecessarily on, and having unused electrical devices plugged in can also cause skyrocketing bills. If you will be away from home for a while, there is no need to leave your HVAC unit on. If possible, try to invest in energy-saving home appliances, switch to energy-efficient light bulbs, and only purchase energy-star-rated electronics. For your dishes and laundry, try to do full loads rather than a few items. Having a programmable thermostat will be good to regulate your home heating while keeping energy consumption to a minimum.
2. Manage Debts and Credit Cards Properly
If you are like many people out there, a huge chunk of your monthly income probably goes into repaying debts like mortgages and student loans. These often carry high-Interest rates that will affect your finances for a long time. Finding a solution to reduce these rates is advisable. If possible, you can get another source of income to help in faster payment. Also, you can consider loan consolidation. This allows you to merge all your high-interest loans into a personal loan with a lower interest rate.
Another way to manage debt is via loan refinancing. If you qualify for a refinance loan, you can use it to pay the previous ones and enjoy better rates. Managing your credit card will help save some money as well. Most of us end up doing impulse purchases because we know we have a credit card. To avoid falling into the credit card debt-cycle trap, train yourself to use it wisely. This can help you free yourself from unnecessary debt.
3. Cut on Home and Entertainment Spending
Most people do not have a budget for in-house expenses like grocery, meals, and occasional entertainment. This can be a great way of losing money. Having a budget of what you need in the house allows you to be more responsible. It also allows you to do bulk purchasing, especially for non-perishable products. Cut back on eating out or buying coffee and other takeout meals. Instead, invest more in home-cooked meals. Cooking may not be your strongest forte but hey! That is what cookbooks are meant for.
Entertainment contributes to our high bills. Cable service is expensive and if possible cut that cable cord. Streaming TV service allows you to enjoy great content at a reduced fee. While at it, you should consider using a cheaper internet provider. Do your research. Besides, you do not have to go to the movie theatre to enjoy a movie. Prepare your popcorns at home and enjoy the great show in the comfort of your four walls. Also, you can cancel the membership to clubs and groups you rarely attend. All this is towards the money-saving goal.
Reducing your monthly bills may seem daunting at first but the smile you will wear after seeing your reduced bills will let you know it was worth it. You may not achieve all at once, but you can start with the basics and work your way to the complex ones. Take advantage of discounts, coupons and contact your service providers for better rates. Since your main goal is to save from your expenses, money discipline will also be vital. Hopefully, the above tips will help you realize a significant difference in the amount you spend on your monthly bills.