5 Ways to Reduce Monthly Bills
Myriad of obligations and desires pulls all your attention when you receive the paycheck. And among them one thing that needs to the most attention, is your monthly bills. You will find that once the bills are paid and necessary purchases are out of the way, very little remains for your savings.
Often this is the cause of frustration and starts demoralizing us as we continue to struggle for building savings. In this context case both quality of life and financial security gets compromised.
Here in this article we will impart some suggestions to reduce your monthly bills with good effect.
What Are Your Expenditures?
Make a spreadsheet with all the monthly bills that you have and include the name of the organization whom you are going to pay, the amount, category of expenditure and the total balance and interest rates that you need to pay. You will be able to track where your income is going and identify the phase where you can cut back your expenses.
Experts are of the suggestion that our daily expenditures and bill payments just make 50% of the annual salary. Look at the fact that one can truly afford and find out potential means to cut back.
What Are Your Priorities?
Which monthly obligations are the most essential? Rent and mortgage, they are most essential of the lot, while the cable bill can be reduced or eliminated. Do adopt some potential ways to reduce the amount spent on what is remaining behind.
How to Reduce Mortgage Payments?
Are you having a good credit score? Or a sufficient amount of equity? Then you can consider refinancing your home. Interest rates are all time low, and by refinancing you take the advantage of this solution.
However, refinancing isn’t for everyone and one should consider the decision based upon the financial needs. Find all the cost involved in refinancing and compare this to the money saved by locking down in a low interest rate. You can also take the help of a refinancing calculator to find out the potential returns.
Is It Necessary To Lower Down The Utility Bills?
It is necessary to lower down the utility bills by taking simple steps to reduce the water and electricity usages. In order to save water you can lower down the shower time to 10 minutes and run the dishwasher when it is full, do the laundry once a week. Cut back on the lawn and garden watering schedules also.
In order to save on the electricity bills, use LED or CFL bulbs, turn off the lights when they are not in use, raise the thermostat in winter and lower it in winter and when you buy some new appliances, do make sure that they are energy efficient.
How Will You Eliminate Credit Card Debt?
Credit card debts are easy to accumulate but difficult to pay. The interest rates are so high that much of the monthly payments go to the interest and you continue to waste the money. It is hard to get rid of the credit card debt, but it is able to give away.
Pay only in cash and charge an amount that can be paid at the end of the month. Cut back the other expenses and allocate the money saved to pay off the credit card debt.
If you can commit to reduce the monthly bills using the 5 suggestions mentioned above, then you will be able to put away the debt and build your savings.
Author’s Bio: Robin Granger helps people to make money online and a major contributor of finance related topics to many blogs.
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Category: Budget
Dave, this is a very informative post. If you are using a credit card to purchase food and grocery then you consider reducing your budget for food and grocery items. With rising living expenses, increasing food expenditures and ploys marketing there are always a lot of means to lessen your credit card bill.
You need to start somewhere and smarter food shopping is a good place to start. I also recommend this for those who are pretty careful with their shopping. It’s easy to fall back into the old ways. It’s good now and then to sharpen your pencil and see where you can cut in the house budget.
Everyone needs to find ways to save on food bills. It’s a never ending job.
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