As all adults like to joke about, the thing they miss the most about their childhood is not paying bills. This is completely true because the day adults dread the most every month is the due date of their bills.
Fortunately, reducing our monthly bills without sacrificing our convenience is possible. The typical bills we pay include mortgage, credit cards, utilities, phone, internet, cable, and some luxuries such as club memberships. You may also be subject to student loan payments. If you compute the total amount of all those bills, the result is no doubt painful to look at.
So, here are the ways to cut down on your monthly bills and enjoy your savings more:
- Refinance Your Mortgage
There are several good reasons to refinance your mortgage. It lowers your interest rate, shortens your loan term, consolidates your debts, relieves you of PMI (Private Mortgage Insurance), and lets you build up your home’s equity faster.
However, before looking into more favorable mortgage refinance rates, consider how long you plan to stay in your home, your general financial goals, and overall financial situation. Refinancing is a good decision if you don’t have plans of moving out for the next several years. The lower monthly payments would also be beneficial if you have other important financial obligations, such as your children’s education, or emergency medical bills.
- Consolidate Your Debts
Debt consolidation is basically a new loan that converts your separate debts into a single liability. Refinancing your mortgage also makes this possible, but if you’re not under a mortgage loan, you can apply for debt consolidation from banks, credit unions, or credit card companies.
You may also consider a debt settlement, or a debt settlement in conjunction with a debt consolidation, if you wish to reduce your obligations rather than the number of your creditors. This would relieve you of the loans that you can no longer afford to pay, but without affecting your credit score.
- Get Cheaper Gas and Electricity Deals
Be updated on the latest fuel deals that can considerably cut down your gas expenses. Similarly, look out for energy-efficient appliances that can significantly lower your electric bills. Replace your fluorescent lights with LED bulbs, and install a programmable thermostat so you can control your HVAC’s thermostats anywhere from your smartphone.
Using a power strip can also reduce your electric bills, as it gives you more control of the energy you’re consuming. Just turn off its switch, and the phantom charges in all the plugged-in devices will be blocked, allowing you decrease your usage on your electronic appliances.
- Look into More Affordable Insurance Policies
If you don’t go on medical appointments frequently, a health insurance with a lower premium might be more suitable for you. Consider a high deductible health insurance plan, which gives you just enough coverage for a medical emergency. But before shifting to this insurance plan, weigh your expected savings first against the additional amount you may have to shell out annually. Remember than a cheaper insurance policy doesn’t always mean better.
- Cancel Unnecessary Memberships and Subscriptions
If you’re still paying for your gym membership despite months of missing workouts, then you’re better off cancelling that membership. Likewise, cancel also other memberships and subscriptions that you aren’t really benefiting from.
With these monthly expenses reduced, you will no longer feel compelled to skip vacations and other activities that you enjoy because you can’t afford them. However, remember that your goal for lowering your bills is to save more money, so don’t go spending all the cash you’ve saved on unnecessary things.