It can be tough to keep track of monthly bills and figure out where you can cut corners each month. But don’t worry, this article is here to help!
This blog post will discuss four things that you should have in mind when trying to reduce your monthly expenses. So read on for some helpful tips!
Eco-friendly solutions have a double benefit: saving you money and saving planet Earth. The contracting solar team at Trusted Solar explains how panels on your roof can provide a steady stream of income, and going green doesn’t have to mean going without.
Apart from that, there are also some other ways you can go eco-friendly.
Get an energy audit. You may be surprised at the number of little things you can do to decrease your energy consumption and save money on your electric bill each month.
Seal up drafts, switch to CFL or LED light bulbs, unplug electronics when they’re not in use, and adjust your thermostat a couple of degrees in the summer and winter can make a big difference.
Try to change the way you do laundry. Washing your clothes in cold water can save you money on your water bill and decrease the wear and tear on your clothes. And, if you line-dry your clothes instead of using a dryer, you’ll save money on your electric bill.
You can also replace old appliances with energy-efficient models. If your refrigerator is more than 20 years old, chances are it’s not very energy efficient.
Replacing it with a newer, energy-efficient model can save you hundreds of dollars each year on your electric bill. The same goes for washing machines, dishwashers, and other appliances.
Make A List Of All Expenses
Every household has a number of expenses that usually become very high once you add everything up. These are the following:
- Housing costs: this is likely the highest bill that you have to pay every month. It includes your mortgage or rent, property taxes, and insurance.
- Utilities: these include electricity, water, gas, trash, and sewer.
- Phone and internet: most people have a landline, cell phone, and internet service.
- Food: groceries for cooking at home as well as eating out at restaurants.
- Transportation: car payments, gasoline, public transportation costs.
- Clothing: clothes for yourself and your family members.
- Medical expenses: health insurance premiums, copayments/deductibles, prescription drugs.
- Childcare: if you have young children, you may need to pay for daycare or babysitting.
- Entertainment: this can include going to the movies, playing sports, and vacations.
Now that you have a list of all your expenses, it’s time to start making some changes. One way to save money is to shop around for better deals on your housing costs, utilities, phone and internet service, and transportation.
You may also want to consider making some lifestyle changes, such as eating out less often or cutting back on entertainment costs.
Finally, make sure you are taking advantage of any discounts or coupons that are available to you. With a little effort, you can easily save hundreds of dollars each month!
Track Your Spending
You have to keep track of everything you spend. Luckily, there are personal finance apps that can do it for you. All you have to do is link your bank account and credit cards to the app and it will track your spending.
Some people like to keep a physical tracking system, like a bullet journal. If that’s what works for you, stick with it. The important thing is that you’re tracking your spending so that you can see where your money is going.
Once you know where your money is going, you can start making changes. Maybe you’ll find that you’re spending too much on eating out or buying coffee every day. Or maybe you’ll realize that you need to start budgeting for things like vacations and new clothes.
Whatever the case may be, tracking your spending is the first step to cutting your monthly bills.
Create a Budget
You need to make a monthly budget and stick to it. This is the only way to make sure you’re not spending more than you can afford and that your money is going where it needs to.
There are a lot of great tools out there to help you create a budget, like Mint or You Need A Budget. But even if you don’t use a specific tool, creating a budget is pretty simple.
First, list all of your regular expenses: rent/mortgage, car payment, insurance premiums, student loan payments, etc. Then estimate what you’ll spend on variable expenses each month: groceries, gas, entertainment, etc.
Subtract your regular expenses from your estimated variable expenses and that’s how much money you have leftover for things like savings and unexpected costs.
Bills can quickly pile up and you are left with a small amount by the end of the month, which is why many people decide to go eco-friendly which saves them a lot.
It’s also smart to make a list of all expenses to know what you’re spending on, as well as tracking what you spend every time you pay for something.
Finally, create a monthly budget and don’t let yourself waltz away from it. This will make sure that you have a certain amount saved up!