These expenses include everything from a mortgage to electricity bills. If you feel like more of your money is going out than coming in, finding ways to reduce your monthly expenses is a must.
The first thing you need to do when trying to lower your cost of living is to perform a thorough audit of what you are paying. Putting all of your monthly expenses down on a piece of paper can help you see where resources are being wasted (aka, do a monthly budget). Read below to find out more about quick ways you can cut down your monthly expenses.
Image Credit: DepositPhotos.com.
1. Are you getting the best electricity rates for your area?
SPONSORED: Find a Qualified Financial Advisor
1. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.
2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals get started now.
If you are looking for ways to reduce the number of your monthly expenses, the first thing you need to look at is your current electricity rates. For individuals living in the great state of Texas, finding a good deal on electricity is a breeze. Since the deregulation of the electricity industry in this state, consumers have been able to get better rates on their monthly service. The various electricity providers in Texas are trying to gain the lion’s share of the residential power market, which is why they have lowered prices significantly.
Finding the best electricity rates is easy when using the power of the Internet and the EnergyBot website. If you are looking for more information on how to save money on your monthly power bills, you can get it from here.
Image Credit: Stock-Asso/shutterstock.
2. Focus on saving money on food
Homeowners with large families know all too well how expensive buying groceries can be. If you and your family eat out a lot, your monthly food budget can get out of control. Rather than losing money due to this type of frivolous spending, you should focus on reducing your food budget immediately. Accomplishing this goal will be easy when doing things like:
- Using coupons at the grocery store
- Planning out every meal in detail
- Buying commonly used items in bulk
- Meal prepping is beneficial
- Use a cash back app like Rakuten
By making these small changes, you can decrease the amount of money you have to spend on groceries each month.
Image Credit: Imgorthand.
3. Replace outdated appliances
Using appliances like stoves, microwaves, and washing machines are pretty standard for most homeowners. The longer you have the same devices in your home, the more inefficient they will inevitably become. Ignoring the need for new and more energy-efficient appliances can result in a lot of money being wasted.
While new appliances will be costly at first, they can save you money in the long run. Energy-efficient appliances will work better and use far less electricity than your outdated appliances. Taking the time to research all of the different appliances on the market is the only way to ensure you choose the best ones.
Image Credit: .
4. Cutting the cord can save you money
Most homeowners fail to realize just how much money they spend on basic cable and the Internet. On average, homeowners spend roughly $120 a month on cable. If you find yourself watching streaming services like Hulu or Netflix regularly, you may need to cut the cord and get rid of basic cable.
In most cases, it is cheaper to increase your Internet speed and pay for a few streaming services than it is to hang on to the basic cable. With a bit of research, you can get an idea of how much money cutting the cord can save you.
Image Credit: Prostock-Studio/iStock.
5. Hire professionals to perform an energy audit
Do you live in an older home? If so, chances are a lot of air is escaping through your attic, doors, and windows. Finding and fixing these issues will be much easier with the help of an experienced electrician. Hiring professionals to perform an energy audit on your home can help you discover problems that need to be fixed. Properly sealing up drafty doors and windows is essential when trying to reduce the amount of electricity your home uses every month.
Image Credit: DepositPhotos.com.
6. Purchasing used items is cost-effective
American consumers buy a lot of merchandise. If you are continually buying new things, you know how expensive this can be. Rather than buying everything new, you need to figure out what items can be purchased used. For instance, if you need new furniture, you need to see if you can find someone in your area with a quality set for sale. Often, you can get a much better deal on used furniture.
You may also want to think about buying used clothing. Many consignment businesses offer used clothing that is both appealing and affordable. If you are looking for a way to make a few extra dollars, you may even want to sell some of your old clothing on a site like Mercari. Visiting the website of a business that buys used clothing will make this transaction smooth and stress-free.
Or if you don’t want to purchase used items, at least look online to see where you can get good deals. For example, sites like consumermattressguide.com frequently share good deals on mattresses. There are many similar sites you can find.
Image Credit: iStock.
7. Be mindful of your monthly subscriptions
One of the most common strategies businesses use to attract consumers is free trials. In most cases, these free trials will offer a discounted price on an item or service only if you allow the company to set up a subscription auto-draft.
The main problem most consumers have is remembering to cancel these subscriptions. Taking the time to look at your bank account, and the number of auto-drafts you have set up is a must. In most cases, you will find several auto-drafts that need to be canceled.
The money you save on these unneeded subscriptions can be better invested in building wealth. Routinely auditing your bank account is also a great way to find out where all of your money is going. Cutting out wasteful spending will be difficult, but well worth the effort you invest.
Image Credit: DepositPhotos.com.
It’s time to get to work
As you can see, there are many ways to reduce your monthly expenses. If you are ready to save money, it may take a bit of time and effort at first, but you will be well on your way to having extra cash at the end of the month!
Image Credit: laflor.