4 Tips To Shrink Your Monthly Payments
Short of earning a raise at work, the only way to suddenly sprout some spare cash is by reducing the amount you’re spending. Many sources advise people in their 20s and 30s to save about 20% of their income, and that percentage grows higher as retirement age grows nearer.
Chances are, if you’re looking to budget, you’ve already cut out luxuries like cable TV or a housekeeping service and have put the kibosh on frequent shopping trips. To free up even more cash to bolster your savings account, try these tips to trim back your more necessary bills.
Revisit Loans
Do a bit of research into your outstanding loans and lay out your options. Is refinancing a possibility for a home or auto loan? If your credit has improved or if national interest rates have fallen since you took out the loan, you could end up lowering your monthly payment and saving hundreds or thousands over the life of the loan. If you have student loans, pay close attention to the interest rates. Consolidating could lower your overall interest rate and combine all of your loans into a single reduced monthly payment, and many loan servicers also offer a small reduction in interest rates for enabling autopay.
Buy in Bulk
If done properly, and with the right items, buying in bulk can save your household money and waste. Nonperishables, such as toilet paper, soap, laundry detergent, paper towel, and shampoo, can be enormously cheaper if you buy them en masse. Even some food items bought in bulk, such as applesauce, canned goods, or yogurt, can be portioned into glass jars and/or saved for future use.
Meal Planning
Food is one of the largest expenses in a household, after housing, transportation, and personal insurance, according to data from the Bureau of Labor Statistics. The easiest way to fastidiously enforce your food budget is to plan your meals in advance. If you can sketch out a menu for the week that utilizes similar ingredients, you’ll have a more focused trip to the grocery store and you’ll end up throwing less away weeks after it’s been shoved to the back recesses of the refrigerator. Instead of running to the store and perusing potential ingredients, look in your refrigerator first and use that information to decide your next meal. Making a conscious effort here saves you money and it keeps food waste out of landfills.
Energy Conservation
Lowering your energy consumption is a low-hanging fruit when it comes to cutting monthly expenses. The small changes of swapping incandescent bulbs for CFLs or LEDs can save you money on your utility bill, plus LEDs last roughly 25 times longer than traditional bulbs, dramatically cutting replacement costs. Even while they’re turned off, plugged in electronics continue to pull energy. To stop the drain, plug your TVs, computers, and other devices into power strips that can be easily unplugged when not in use. Cut back on water usage by taking shorter showers, washing only full loads of laundry, and using your dishwasher if you have one — doing dishes the old-fashioned way can use 6 to 12 gallons more.
Some of these tips might take weeks to accomplish — such as researching your loan options and refinancing — but others can deliver results almost immediately. Keep a close eye on your daily habits as well as your checking account for even more opportunities to save.
Sam Radbil is a contributing member of the marketing and communications team at ABODO, an online apartment marketplace. ABODO was founded in 2013 in Madison, Wisconsin. And in just three years, the company has grown to more than 30 employees, raised over $8M in outside funding and helps more than half a million renters find a new home each month.
About Thomas C. Corley
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