Practical Tips to Lower Your Monthly Bills

Finding ways to save money on monthly bills can make a significant difference in your budget. Small changes can add up to meaningful savings over time. However, not all savings require drastic changes; sometimes, it’s about making smarter choices with what’s already there.

Whether it’s tweaking your housing expenses or cutting back on streaming services, there are numerous strategies to reduce your costs. This guide provides straightforward tips to help you lower your bills across various categories, from housing to transportation. Let’s dive in and explore how you can save more each month.


Lowering your housing costs is a heavier responsibility than, for example, decreasing your grocery bill, but doing so can provide significant savings. There are multiple ways to save on your rent, mortgage, and homeowners insurance.

For those with a mortgage, refinancing can be a smart move. By refinancing to a lower interest rate, you can save money on your monthly payments. Ensure your credit is in good shape for the best rates, and compare fees from various lenders. Our mortgage refinance calculator can help pinpoint your best option.

If you put down less than 20% when you bought your home, you likely had to get private mortgage insurance (PMI). Your lender should drop the PMI once your mortgage balance falls to 80% of the home’s original appraised or current market value.

Renters can save by moving to a smaller unit. Downsizing from a three-bedroom to a two-bedroom apartment can save hundreds each month. This may require sharing rooms or losing a guest room, but the savings can be substantial.

Another tip for renters is to get a roommate. In some cities, upgrading to a larger apartment and sharing it with a roommate can actually lower your rent. For example, in Pittsburgh, a two-bedroom apartment split between two people can be cheaper than each renting separate one-bedroom units.

Lastly, negotiating with your landlord can also lead to savings. Offering to sign a longer lease or take care of minor repairs yourselves might convince your landlord to lower your rent.

Homeowners insurance can be reduced by shopping around for the best rate. On average, homeowners insurance costs around $152 per month. Compare several quotes to find the best policy.

Bundling your home and auto insurance can lead to discounts as high as 25%, depending on your insurer and location. Also, always inquire about available discounts, such as those for electronic payments or installing a home security system.


Your monthly utility bills are an excellent place to find quick savings. Small actions like adjusting your thermostat or enrolling in automatic payments can add up.

Review which streaming services you still use and cancel the ones you don’t. This can save money every month. If you watch only a few shows on a service, consider binging them, then canceling. Take advantage of free trials to watch the content without committing financially.

Bundling your cable and internet services can help reduce costs. Switch to a lower speed tier or buy your modem instead of renting it to save more.

Switching your cell phone plan or carrier can also result in savings. Automatic payments can provide discounts from carriers like Verizon, AT&T, and T-Mobile. Check if a prepaid service is cheaper based on your data usage.

Dialing down your thermostat at night or when you’re away can reduce your heating bill. Similarly, lowering your water heater temperature can help cut costs.


Transportation costs can take up a large portion of your budget. Whether it’s for a car or public transit, finding ways to save here can free up a lot of money.

If you have a car payment, refinancing your auto loan for a better interest rate or extending the loan length can lower monthly payments. You need a history of on-time payments for six to 12 months to qualify.

Another way to cut costs is by selling your car. Use the proceeds to pay off your loan and buy a cheaper vehicle. This can reduce expenses like gas, insurance, and maintenance.

For those who don’t really need a car, selling it and using public transport can result in significant savings. The money saved on car-related expenses can cover public transportation costs and other occasional travel.

Auto Insurance

Raising your auto insurance deductible will lower your monthly premium. However, remember this increases your out-of-pocket costs if you’re in an accident.

Reducing coverage can also save money. For older cars, full coverage may not be necessary. Consider dropping collision and comprehensive coverage if your car is worth less than your deductible plus a year’s worth of premiums.

Inquire about available discounts such as those for good students, safe drivers, or multiple drivers. Additionally, bundling car insurance with home or life insurance can result in savings.


Food expenses are another area where you can save without making big sacrifices. Planning your grocery shopping and dining out can make a substantial difference.

Creating a grocery list helps avoid impulse buys and keeps spending in check. Using coupons can also help save extra money on groceries.

Switching to store brands instead of name brands is a simple way to cut costs without sacrificing quality. Most store brands are as good as or even better than more expensive alternatives.

When dining out, look for happy hour deals or specials like Taco Tuesday. These deals can make eating out more affordable.

Additionally, opting for an appetizer instead of an entree or splitting a meal with a companion can save money while still enjoying a night out.


Relief on debt payments is possible through refinancing or consolidation. These methods can lower your monthly payments and relieve some financial pressure.

For student loans, consider income-driven repayment plans. These plans cap payments at a percentage of your discretionary income, making monthly payments more manageable.

If you’re struggling, look into deferment or forbearance, which temporarily halts payments. However, interest may still accrue, increasing the overall loan balance.

Refinancing student loans at a lower interest rate can also reduce monthly payments. However, be aware that refinancing federal loans with a private lender means losing federal loan protections.

Credit card debt can be managed by asking for a lower interest rate. A good credit history increases the chances of your issuer agreeing to this request.

Transferring your balance to a card with a 0% interest rate can also help. This will allow you to pay off the balance interest-free for a set period.

Consolidating credit card debt with a personal loan is another option. Personal loans generally have lower interest rates, which can save you money over time.


Monthly subscriptions can add up, but there are ways to reduce these costs without feeling the pinch.

Limit the number of streaming services you subscribe to. Opt for one that offers multiple benefits, like Amazon Prime, which includes free shipping and streaming.

Family plans for music streaming services like Spotify and Apple Music can save significant money as they allow multiple users on one account.

Negotiating with your gym for a lower membership rate is also worth a shot. Come prepared with competitors’ rates and the gym’s own new customer promotions.

Canceling your gym membership and using free classes or online workouts can help you stay fit without the monthly cost. Many gyms offer free trial classes, and various online platforms offer free workout routines.


Shopping for clothing and household goods can become costly, but there are ways to reduce these expenses significantly.

Buying secondhand from thrift stores or consignment shops can offer great bargains. Many of these stores also have special discount days or bulk purchase savings.

Selling clothes you no longer wear is another way to save money. Local consignment shops or online platforms like thredUP make this easy. You can also buy and sell items, getting a payout for accepted items.

Search social media for free or low-cost clothing options. Platforms like Facebook or Nextdoor have groups where members offer items at no cost or for less than new. Clothing swaps in your community can also be a great way to trade items you no longer need.

Household Purchases

Save money on household purchases by using smart shopping strategies. Browser extensions like Honey and RetailMeNot can find and apply the best coupon codes to your online shopping cart.

Comparing prices before making a purchase is another savvy way to cut costs. Online sites can help you find the best deals on household items, ensuring you’re not spending more than necessary.

By implementing these strategies to reduce your monthly bills, you can achieve notable savings across various aspects of your life. From housing and utilities to food and transportation, every small adjustment contributes to a healthier financial situation.

Being mindful of your spending habits and regularly reviewing your expenses will make long-term savings more achievable. With consistent effort, these tips can provide greater financial freedom and peace of mind.

Source: NerdwalletYoutube