7 ways to cut monthly bills without feeling shortchanged
Cost-cutting strategies can give your wallet some breathing space instead of retirement, and doing so can be easier than you think.
Reducing your monthly spending doesn’t have to be a limited budget. Instead, there are small steps you can take – from shopping around for a new phone plan to combining your insurance plans – to save.
Quick ways to reduce your monthly bills
There’s a good chance you can lower at least one of your monthly expenses, such as utilities or insurance, by reviewing what you pay and looking at other options. Make a list of all your monthly bills, which you can do by looking at your credit card statements. Some banks even set a budget and use tools that allow you to see in which categories – such as entertainment, utilities or food – you spend the most money.
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As you review your budget, see if there are areas where you’re surprised you’re spending too much, and take steps to cut back. Here are seven ways to reduce your expenses in retirement today:
- Shop Mobile Virtual Network Operators (MVNO) Mobile strategies like Mint Mobile or Cellphones, tend to be cheaper than major carriers
- Change your broadcast cable or downgrade your package
- Call your internet provider, explain that you are looking at other options and negotiate a lower cost
- Make energy saving habits with smart plugs
- Use water saving devices to cut utility bills
- Lots of home and auto insurance forums
- Review annual memberships and cancel unused subscriptions
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Calculate the annual savings
Calculating how much you can save can motivate you to cut back on your expenses. For example, deleting two subscription services that cost $9.99 per month will save you about $240 per year. Save $40 per month by exchanging your phone plan for a sub plan that can give you $480 each year.
That’s $240 or $480 that you can invest in an index fund and watch it grow.
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Create a savings plan that will stick
You can reduce monthly expenses without cutting out essential items – but you also don’t want to overdo the things and activities that bring you joy. Review your expenses and decide which expenses you can cut without losing money. Doing this will make it easier to stick to your budget, instead of going back to your previous budget in a few months.
And remember that dealing with all the bills at once can be stressful. After reviewing your expenses, start by trying to reduce one expense. In this way, you can tie up small wins and gradually see how much money you have dropped into your budget. Those small wins can snowball and generate momentum as you see your budget flexibility grow.
