4 ways to reduce your monthly expenses

4 ways to reduce your monthly expenses

The cost of living is steadily increasing, so it stands to reason that many households across the U.S are looking for ways to save money. Reducing your outgoings even by a small amount here and there can add up and make a big difference to your overall spending.

We appreciate you might not be too sure where to start, so we’ve put together a list of 4 ways to reduce your monthly expenses. Even if you only implement a few of them, you could be surprised at how much you could save.

Don’t use your heating unless necessary

When it is cold outside, there are few things nicer than waking up to a warm home, however, energy prices are soaring at the moment, and so it makes sense to try and reduce your consumption. The more you use, the more it will cost, so before you crank up the heating, consider cheaper alternatives. Throw on another sweater, close doors to keep warm air from escaping, and close your drapes.

Turning the thermostat down a couple of degrees can also help reduce your heating bills each month, so, although you might be tempted, try not to keep putting it up.

Shop around for car insurance

Instead of automatically renewing your car insurance when your renewal notice comes through, use a comparison site to look for the cheapest car insurance available. It should only take 30 minutes at the very most, but the savings you make could be huge.

Another thing to bear in mind is that various factors such as occupation, where you park your car, and whether you choose to pay annually or monthly can all affect your quotes.

Switch off lights and sockets

How often have you walked into a room in your home only to discover the lights are already on or come across phone chargers plugged in and switched on when they are not in use. It’s a common theme, particularly for those with kids, so if this resonates with you, it’s time to do something about it.

Explain to the whole family that electricity costs money and that everyone needs to play a part in helping to reduce the amount they use. Not only will it save you money, but it can help to reduce your carbon footprint too.

Consider a remortgage

Your mortgage is probably one of the most expensive bills you have to pay, so reducing it, where possible, should be a priority. If you are not tied to an existing mortgage product, it’s worth speaking to an independent mortgage broker about remortgaging. Changing your mortgage should enable you to switch from a variable rate mortgage to an alternative mortgage product with a better rate.

If you are happy with a variable rate, another option is to overpay each month. Although this will increase your monthly payments, you will pay off the remaining debt far quicker, which could potentially save you thousands over the lifetime of your mortgage.