Feeling swamped by bills? I was always advised growing up that bills are a necessary evil in life. However, that doesn’t mean it’s normal to constantly feel short on money because of paying bills.
If your bills are sky-high and causing financial difficulty, remember you’re not stuck in this situation.
There are various strategies to reduce your bills and make your budget more manageable. Here are my top 7 tips for decreasing your bill load:
1. REDUCE GROCERY EXPENSES
Often your grocery bill can be one of your heftiest monthly expenses. Many find it hard to rein in their grocery expenses due to their buying preferences. Impulse shopping, particularly when using a credit card, can easily result in overspending.
To budget effectively, I suggest using only cash for purchases and shopping with a list. If you frequently eat out for working lunches, consider purchasing items to make and bring your lunch from home.
Several years ago, we started doing this, and surprisingly it didn’t significantly inflate our grocery bill.
Also, you can use cash back apps such as Ebates to earn rebates on your grocery buying. It’s really straightforward to use. You can find a guide on how to use it here.
2. SCALE BACK YOUR MOBILE PHONE SERVICE PLAN
If you’re not tied into a contract with your phone service provider, ensure you’re getting the most value from your plan.
I personally prefer prepaid plans, as they’re often cheaper than contract plans. Nowadays, popular mobile phone companies offer competitively priced prepaid plans or flexible contract terms.
Your choice will depend on the phone features you require and what you’re willing to pay. I’ve been using Straight Talk for several years, with plans as inexpensive as $35/month for talk, text, and data. It’s good to know if I ever need to save more, I can effortlessly downgrade my service and keep more money in my wallet.
3. MAKE USE OF A PROGRAMMABLE THERMOSTAT
Among the simplest ways to reduce your heat or cooling costs is to delay turning on your heating or AC as long as possible. In the summer, I use fans and find other ways to cool our home before resorting to the AC.
If you have a programmable thermostat, make sure to maximize its use when needed. It automatically adjusts the temperature depending on your daily schedule.
For example, you can schedule the thermostat changes for when you’re asleep or out of the house. Using a programmable thermostat can easily save you at least $15/month on your utility bills.
4. UTILIZE ENERGY ASSISTANCE PROGRAMS
If you’re still struggling with your electricity bill and are on a low income, you may qualify for energy assistance programs.
Several government and community organizations offer programs to help you with your utility bills by covering a proportion of the payment.
These programs usually require you to meet certain income limits and other criteria. If you’re having a hard time, consider this and other similar programs as temporary solutions until your situation becomes more stable.
5. INCREASE YOUR INSURANCE DEDUCTIBLES
A readily applicable strategy to reduce your insurance payments is to raise your deductible. However, it exposes you to potential risk as you’d have a higher deductible to pay before your insurance coverage starts.
This said, if the deductible is manageable and you rarely claim from the insurance, a lower premium might be the better option for you. Alternatively, shop around to compare insurance products for a potential switch to a cheaper plan with equivalent coverage. This is something I often do with my car insurance, which results in significant cost savings.
6. CONSIDER GETTING A ROOMMATE
Sharing your living costs with a roommate can decrease several of your bills. Obviously, this may not be a viable option for everyone. But if you have spare space in your home, you may consider renting it out.
This is a consideration my husband and I are exploring with our spare room. The roommate could pay a flat rent for your space or a share of the utilities in the shared living space.
7. CUT DOWN ON UNNECESSARY BILLS
While some bills are unavoidable, the same can’t be said about others. If you’re feeling burdened by copious bills, audit them to check for unnecessary ones. These could include subscriptions that you might want to cancel if you’re struggling to afford mandatory bills like utilities or medical expenses.
A free service called Trim can help you identify and eliminate forgotten subscriptions.
Sometimes, a clear boundary between wants and needs gets blurred, leading to unnecessary financial stress. Even a temporary cutback can make a big difference to your budget.
How do you manage to lower your bills? Any additional tips or ideas? Feel free to share below.
