5 Cheap Ways to Lower Monthly Necessity Bills

Woman with billsWhat do you spend money on each month? These necessities range from money to pay for your food costs to money on utilities. The bulk of the money most people earn goes towards paying the bills. If you could cut back on some of those bills, though, you may end up having more money in the bank to pay for the things you want and need. What would you do if you have more money in the bank than you thought was possible? You could, if you take a few extra steps to cut down on the necessities you have right now.

The following tips will help you to cut down on those things in your budget that you feel you have to pay for. You may find you could save substantially.

  1. Refinance your mortgage if the current interest rate you are paying is higher by a percentage point or more. At the same time, try to reduce the term of that loan. This will save you thousands of dollars over the course of homeownership. To lower your monthly payment, extend the terms for a longer period.
  2. Convert to solar power. Solar power systems are becoming far more affordable than they ever were. In fact, many people are now able to save money by converting to a near off the grid energy system. Chances are good you will save money over the long term by investing now.
  3. To cut down on your food budget, perhaps the biggest flexible spending you have, focus on growing more of what you eat. You can even do potted plants on your deck to help defray the costs. Another option is to focus on coupons. Many people are able to pay between 20 and 50 percent less, sometimes far more, just by clipping coupons.
  4. Even if you do not go with a solar system for power in your home, you can save by reducing energy consumption. To do this, raise that thermostat by two degrees in the summer and lower it by two degrees in the winter. Unplug appliances you are not using. Use the sun to light up your home instead of using lights. Cool the home by placing trees on your property.
  5. Cut down on the amount of gas you use, as it is one of the most in demand costs for the budget. Focus on biking whenever possible. Combine trips to save money. Carpool or take public transportation to work. The key is just to use less and ensure that when you do need to use gas, you are operating a vehicle that is in the best possible condition.

When it comes to reducing your necessity bills, these tips can get you started. Take a closer look at what you are paying for each of your necessities right now. Take the time, then, to find the best way to pay less for your energy costs overall. This will help you to save money overall. Be creative in the ways you save.

George Gallagher is a personal finance blogger and accounting professional. He contributes to many online publications, including work with CUStudentLoans and their private student loans program.

{ 2 comments… read them below or add one }

1 Phil Fremont-Smith June 16, 2011 at 11:25 am

Great post! Another necessity you can lower your bills on is your Cable Package – and start to get more of your TV and other media from Hulu.com Netflix.com and Amazon.com among others. All offer readily accessible On-Demand media. You just pay for what you want – not the 300 channels you never even really look at. I’ve restricted my cable bill to Only Internet – and we’re now getting all of our entertainment from Online sources. Saving approximately $200/month. And that’s not too bad.


2 Heidi June 16, 2011 at 4:38 pm

We use Netflix and haven’t had a cable bill for over six years. I’ve tried Amazon, but although I love them for everything else, I was creeped out when they started recommending products for me based on what I watched on Netflix. I don’t mind them tracking the things I purchase or watch through their own site, but giving them access to track everything I watch was too much for me. We ended up taking them off our Roku box.


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