Did you know that Americans spend, on average, about over $60,000 per year on household expenses? And yes, that is quite a large sum of money. And the worst part of it all is that most household expenses are completely unnecessary.
So, if you’re like most people, you probably want to save money on your household expenses. After all, who doesn’t want to reduce their monthly bills? Good news is that you have tons of ways to do so, and this article will reveal 20 of them.
1. Reduce Electricity Usage
Reducing your electricity consumption is the first step in saving money on household expenses. For instance, you can use energy-efficient appliances and light bulbs. You can also create a schedule for using your electronics.
Unplugging your electronics when you’re not using them is also a good way of reducing electricity consumption. This includes your coffee maker, toaster, and other appliances you tend to leave plugged in.
2. Check Your Monthly Subscriptions
Do a thorough audit of your monthly subscriptions. You may be paying for things you don’t even use or need anymore. For example, many people subscribe to magazines that they never read.
Others have Netflix and/or Amazon Prime subscriptions that they don’t use. These are all unnecessary expenses that will eat away at your monthly income. By reviewing your monthly subscriptions, you can cancel the ones that aren’t worth the money.
To start reviewing your subscriptions, list everything you pay for every month. Then, cross-reference this list with your monthly bills. This will help you identify unnecessary expenses.
3. Reduce Your Cable Bill
Another major monthly expense is your cable bill. Unfortunately, cable companies make it almost impossible to avoid their monthly charges. Luckily, there are some ways to reduce your cable costs.
You can start by canceling your expensive cable subscription and switching to a cheaper alternative. Or, you can also look into internet-only services. With all the online streaming platforms available, getting cable is unnecessary.
4. Update Your Cellphone Plan
If you have an expensive cellphone plan, you could save a lot of money by switching to a cheaper provider. This is especially true if you’re with a major provider. Smaller providers usually offer lower rates.
If you’ve been with your provider for a long time now, then it’s a good idea to check out their competitors. You may be able to switch to a cheaper plan and save a significant amount of money.
You could also save money by switching providers if you have a cellphone plan for your small business. Many business owners overlook this, but checking your options is a good idea. Doing this will help you save money on your household expenses.
5. Explore Cheaper Housing Options
Perhaps the biggest monthly expense for most people is their housing. If you want to reduce your expenses, you may want to start by exploring cheaper housing options.
There are several housing options you can explore, such as renting out a room, buying a fixer-upper, and buying a smaller home. You may even want to consider moving to a cheaper area.
6. Look For A Cheaper House and Auto Insurance
Insurance is an expense that everyone has to deal with, but it isn’t always affordable. You can look for ways to reduce the cost of your insurance by comparing policies from different providers and raising your deductible. However, raising your deductible will increase the amount of risk you assume. So, if you have a car accident or your home is damaged, you’ll have to pay for the repairs yourself.
But if you can reduce your insurance costs by raising your deductible, it’ll be worth it. You can also try raising your coverage limits. This is especially important if you have a mortgage.
7. Save On Groceries
Another way to reduce household expenses is by restructuring your grocery budget. The first step in doing so is to create a meal plan. If you don’t want to do it o your own, you can always opt for using a budgeting app.
The meal plan will help you save on groceries by allowing you to know beforehand the ingredients you’ll be needing and by searching for cheap alternatives. You can also consider visiting a bulk store. Bulk stores are less expensive than traditional grocery stores, and buying groceries in bulk is a fantastic way to save money.
8. Get Rid of Debts
If you have debts, you should get rid of them as soon as possible. Debts will cause you to spend a lot of money on high-interest payments. They also take a long time to pay off.
The best way to do this is to create a budget. This will help you identify your expenses and plan out your finances to pay them off immediately.
9. Think Twice When Eating Out
Eating out is one of the biggest monthly expenses a person can have. Even if you only eat at budget-friendly places, it still adds up to a large amount of money at the end of the month. So, regardless of where you eat, eating out is expensive and will hurt your finances.
To reduce your household expenses, you should think twice before eating out. First of all, before deciding to eat out, think about whether you can eat at home instead. And whenever you decide to eat out, try to look for places that offer deals or accept coupons.
10. Eat At Home
As you read above, the best way to avoid overspending on eating out is to eat at home as much as possible. Aside from saving money, you’ll also be more in control of what you include in your diet, which means more healthy eating. You’ll also be in control of the portions you eat.
11. Become Eco-Friendly
One way to reduce your household expenses is to become eco-friendly. Many eco-friendly products are cheaper than their non-green alternatives.
For example, organic foods and energy-efficient appliances are often less expensive than their non-organic and non-energy-efficient counterparts. Going green will also help you reduce your carbon footprint, which is good for the environment. As such, becoming eco-friendly can help you reduce your household expenses and make the world a better place at the same time.
12. Consider Going Solar
Another way to start cutting expenses is to consider going solar. Solar panels are rising in popularity and are becoming one of the smartest investments at the moment, as it helps reduce your electricity bills drastically.
Once you find out how much it costs to install solar panels, you might think otherwise. But having a home that runs on solar energy will lower your electricity bills for years.
Depending on where you live, you could even make money by selling power back to the grid. Again, this is a big commitment, so you need to do your research before making a decision.
However, if you go solar, you could save thousands of dollars every year. You might even be able to pay off your system in a few years.
13. Become Water Efficient
Another effective way to reduce your monthly expenses is to become water efficient. This can include things like fixing leaks and taking shorter showers.
Another method is to use water-saving appliances, such as a high-efficiency washing machine or dishwasher. These can seem like small changes but can add up over time.
For example, if you fix just one leak every year, you could potentially save thousands of dollars. If you take shorter showers, you could also potentially save hundreds of dollars each year.
14. Control Your Thermostat
The thermostat is another big monthly expense that people forget about. By simply lowering your thermostat a few degrees can help you save on cooling and heating costs. You’ll be shocked by how much it impacts your monthly bills.
For example, if you lower your thermostat by just two degrees for eight months, you could potentially save hundreds of dollars. Again, this seems like a small change, but it can have a big impact.
15. Take Advantage of Discounts and Coupons
Another effective way to reduce your monthly expenses is to take advantage of discounts and coupons. This includes things like enrolling in loyalty programs at grocery stores and pharmacies. You can also take advantage of coupons when shopping for virtually anything, including appliances and furniture.
16. Pay Your Bills On Time
This might seem obvious, but it’s actually something many people struggle with. You get charged a penalty fee whenever you accidentally miss the date on paying your bills.
However, paying your bills on time can save you hundreds of dollars annually. If you struggle to pay your bills on time, you could benefit from using a budget. A budget will help you learn how to manage your money better, so you can make sure you pay your bills on time.
17. Start Making DIY Cleaning Products
If you want to start saving money on household expenses, one of the first things you should do is start making your own cleaning products. You can easily make your own cleaning products from ingredients you probably already have in your house. These homemade cleaning products not only cost less than the store-bought options, but they are also safer for you and your family.
For example, the next time you run out of dishwashing soap, try making your own. You can get the recipe for homemade dishwashing soap online. You can also try to create your own laundry detergent.
18. Lead a Simpler Life
Simplifying your life means getting rid of the things you don’t need. Getting rid of these items and habits can reduce your household expenses.
For example, see if you can get into the habit of working out at home instead of paying a monthly gym subscription. Or, instead of watching television as a pastime, pick up a book. The less you use your T.V., the less electricity you’ll consume, which means the more money you’ll save.
19. Look For Cheaper Entertainment Ideas
Social outings are also expensive at times, depending on the activity you decide to do. So, instead of always choosing expensive places to visit, you should look for cheaper ways to entertain yourself. In other words, finding cost-effective ways to have fun.
For instance, you can host a movie night or board game event at home. Or depending on your location, you can even find tons of free events to attend around your area, such as museums or local concerts.
20. Keep Track Of Your Spending
Keeping track of your spending is an ultimate must if you’re aiming to reduce your monthly household expenses. You can do so by using a budgeting app.
Or you can also create a monthly excel sheet or use a journal if you prefer. Write down everything you buy on a daily basis and the exact cost.
Once you choose a method of tracking your spending, write down every single day what you’ve spent on. Then, once the month is coming to its end, you can pinpoint where your money goes and find new ways to save money.
Reduce Your Household Expenses With These Tips!
As you just read, there are lots of different ways to reduce your household expenses. Whether you want to go eco-friendly or save money on your water bill, there are ways to save money on just about everything. And if you follow the 20 tips listed above, you’ll notice a drastic change in your finances.
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