Almost half of the American population doesn’t have $1000.00 to cover an emergency expense that comes up.
That means that if someone were to fall ill and medical bills cropped up or if a hole opened up in their roof and water started to pour in, millions of people would have no recourse.
One of the primary reasons why Americans don’t have the money that they need to live a decent quality existence is that they’re on the hook for too many bills.
Student loan payments. Mortgage costs. Car expenses… The list goes on.
In this article, our aim is to shed some light on how you can bring down common household expenses so you can better afford to invest in other pertinent areas of your life.
1. Refinance Your Mortgage
One of the largest bills that you likely tackle as a homeowner each month is your mortgage payment. Given the rapidly rising costs of housing, your monthly bill could easily be well over $3000.00.
Did you know though that much of your mortgage bill is actually interest?
To bring down the interest portion of your mortgage, you may be able to find a lender that’ll buy your debt off of your existing lender at a lower rate.
Always shop around to see what deals are available to you.
2. Take Care of Your Appliances
Replacing expensive appliances like refrigerators or washing machines are expenses that most people don’t plan for. When something breaks though, you’re either going to have to pony up thousands to get your unit swapped out or you’re going to be eating out of an ice chest.
Keep your appliance expenses manageable and elongate their life by reading this guide and getting informed on how to properly care for the technology that keeps your life convenient.
A little bit of proactivity on this front can go a very long way.
3. Day-cations Over Vacations
Vacations for large families cost thousands of dollars and are over in about a week. You can make your budget stretch a lot further by planning a bunch of day-cations.
Day-cations can mean lots of beach days throughout the summer, hikes, trips to discount theaters and other fun activities that make your weeks feel fulfilling without emptying your wallet.
4. Optimize Your Savings Interest
A lot of people don’t take the time to consider how much money they’re not making on their savings account.
Here’s the thing though, if you put $50,000 in a savings account that’s yielding .03% interest and put the same amount of money in an account that has a 2.3% interest rate, in the former account you’ll make $15.00 per year and in the latter account you’ll make $1,150.00.
That’s a pretty big spread and all it takes to be on the high end of it is to shop around for an account that’s going to make your savings dollars go further.
5. Consolidate Your Debt
One of the most common household expenses that the average family struggles with are debt payments.
Student loans. Car loans. Credit card debt… Managing all of those bills and their various interest rates can be a serious hassle.
Fortunately, debt consolidation can add a lot of ease to your financial burden.
Find a lender that will buy all of your debt off of your other accounts and let you pay it at a lower interest rate. That way you only have one person to pay and you’ll be paying that person much less money.
6. Purge Your Junk
Saving on expenses often correlates with saving on space.
The more junk you have, the more tempted you’re going to be to upgrade your space, buy private storage, etc.
To keep you from going down that path, every spring, clean out your house. Find junk that you don’t need and put it for sale, donate it or throw it in the garbage.
Believe us when we say that not only will clearing the clutter from your house make you feel good but it’ll also save you a lot of cash (and even earn you some) in the long run.
7. Make Your Home Utility Friendly
Our final household expenses suggestion for you is that you should do what you can to cut back on the amount of power and water that you’re using. It might not seem like those bills are wreaking havoc on your net worth but over the course of the year, those bills could be a serious burden on your family.
Making your house utility friendly is pretty simple.
Swap out your existing light bulbs for long-lasting energy-friendly ones. Even if they’re slightly more expensive than what you’re typically used to paying for a bulb, the upgraded devices will pay for themselves over time.
Also, add low-flow heads to your water spouts (sinks, shower heads, hoses, etc.). They can reduce your water usage by as much as 50% without substantially impacting the way that you use water.
Wrapping Up Our Tips on Cutting Household Expenses
Household expenses can balloon over time and can eventually render you unable to do the things that you want with your life. To give yourself the best chance of keeping your spending in check, we recommend enacting our tips above.
A little bit of effort making those small lifestyle changes can equal massive and even life-changing results!
Managing money correctly is a lifelong journey. To get more out of your money management endeavors, consider reading more of the financial content that we have up on our website today!