20 Ways to Save
Money and Stretch Your Household Budget
These days, it seems like everyone’s looking
for ways to cut costs and stretch their income further. Fortunately, there are
some simple steps you can take to reduce your household expenses without making
radical changes to your standard of living. When combined, these small
adjustments can add up to significant savings each month.
Here are 20 things you can start doing today
to lower your bills, secure better deals, and begin working toward your
financial goals.
- 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.
- 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.1
- Bundle Cable, Phone, and Internet - You can also save money by bundling your cable, phone, and
internet services together. 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.
- 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 favorite shows are probably available on-demand
through a less expensive streaming service subscription.
- 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.
- Adjust Your Thermostat - Turning
your thermostat up or down a few degrees can have a noticeable impact on
your monthly heating and cooling costs. To maximize efficiency, change
your filters regularly, and make sure your windows and doors are well
insulated.
- Use Less Hot Water - After
heating and cooling, hot water accounts for the second largest energy
expense in most homes.2 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.
- 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.3
- 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.4
- 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).
- 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.
- Prepare Your Own Meals - It
costs nearly five times more to have a meal delivered than it does to cook
it at home.5 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.
- 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.
- 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!6
- 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.
- 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.
- 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 right now, try to negotiate a better interest
rate. If you have a good credit score, you may be able to qualify for a
balance transfer to a 0% or low-interest rate credit card. Keep in mind,
the rate may expire after a certain period—so be sure to read the fine
print.
- Get a Cash-back Credit Card - If you regularly pay your credit card balance in full, a
cash-back credit card can be a good 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.
- Ask for Deals and Discounts - It may feel awkward at first, 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 are able to price match (or beat) their
competitors. And if an item is slightly defective or nearing its
expiration date, ask for a discount.
- 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.
Want more help getting a handle on your
finances? Use the budget worksheet below to track income and expenses—and start
working towards your financial goals today! Please reach out to me for a
downloadable version.
HOUSEHOLD BUDGET WORKSHEET
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Expected
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Actual
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Difference
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HOUSING
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Mortgage/taxes/insurance or Rent
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Utilities (electricity, water, gas, trash)
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Phone, internet, cable
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Home maintenance and repairs
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FOOD
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Groceries
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Restaurants
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TRANSPORTATION
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Car payment/insurance
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Gas, maintenance, repairs
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OTHER
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Health insurance
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Clothing and personal care
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Childcare
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Entertainment
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Gifts and charitable contributions
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Savings, retirement, college fund
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INCOME
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Salary/wages
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Tips and other
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MONTHLY
TOTALS
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Total Actual Income
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Total Actual Expenses
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ADDITIONAL
SAVINGS
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WE’RE
HERE TO HELP
We would love to help you meet your financial
goals. Whether you want to refinance your mortgage, save up for a down payment,
or simply find lower-cost alternatives for home repairs, maintenance, or
utilities, we are happy to provide our insights and referrals. And if you have
plans to buy or sell a home this year, we can discuss the steps you should be
taking to financially prepare. Contact us today to schedule a free
consultation!
The above references an opinion and is
for informational purposes only. It is not intended to be financial advice.
Consult a financial professional for advice regarding your individual needs.
Sources:
1. Insurance Information
Institute -
https://www.iii.org/article/twelve-ways-to-lower-your-homeowners-insurance-costs
https://www.iii.org/article/twelve-ways-to-lower-your-homeowners-insurance-costs
2. Department of Energy -
https://www.energy.gov/energysaver/water-heating/reduce-hot-water-use-energy-savings
https://www.energy.gov/energysaver/water-heating/reduce-hot-water-use-energy-savings
4. Harvard University -
https://green.harvard.edu/tools-resources/poster/top-5-steps-reduce-your-energy-consumption
https://green.harvard.edu/tools-resources/poster/top-5-steps-reduce-your-energy-consumption