Why pay more when you don’t have to? You can lower your bills by negotiating your prices, switching your plan, downgrading your service and more. Try a few—or all—of these 56 different ways to lower your bills and see how many saving opportunities you can find.
Need to find more money in your budget? Evaluating ways to lower your bills is a good place to start saving money. Small tweaks can help you save on everything from Groceries to Homeowners insurance.
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Big-ticket items such as Rent, Mortgage and Car payments require more legwork, but can yield a bigger budget boost. Here’s guide on how to lower your bills and save on your monthly expenses in these categories:
How to Lower Your Transportation Bills
Combat rising fuel and train ticket prices with these top money-saving tips.
Transportation costs, whether for a car or a monthly metro pass, fall squarely into the “needs” category of most budgets. Find more room in your budget by lowering what you spend on getting around every month.
1. Shop Around for Better Fuel Prices
If you have a long car journey coming up, your best bet is to search for the cheapest pump you can find before you fill-up.
We found that fuel at supermarket pumps is typically a few pence per liter cheaper than it is at other garages.
You’ll also generally find savings by filling up at a town or city, rather than in a rural location. Try searching online for the prices near you.
Car Payment
2. Sell Your Car. Look into selling your car and using the proceeds to pay off all or most of your current car loan. Then, buy a less expensive model — preferably a used car, which won’t lose value as quickly as a new one.
3. Evaluate Whether You Even Need a Car. If the answer is no, sell your car and use the proceeds to pay off your existing car loan. What you save in monthly insurance, gas, parking and maintenance costs will likely be more than enough to cover public transportation (more on that below) and the occasional Lyft ride.
4. Refinance Your Auto Loan. You can lower your car payment by qualifying for a better interest rate or extending the length of your loan. You’ll need a track record of on-time payments spanning six to 12 months.
Whether you opt for new or used, aim to keep your total costs — gas, insurance, car payment, registration and repairs — below 20% of your take-home pay.
Related Post: How To Save Money On Gas In 2023
Auto Insurance
One of the best ways to keep your auto insurance costs down is to have a good driving record.
5. Get better-value Breakdown Cover. Signing up for a breakdown service can massively reduce costs when a breakdown happens.
Going without it completely could leave you hundreds of pounds worse off in pay-on-use fees and premiums.
It’s also worth opting for a policy including home start (or equivalent), since you’re most likely to have a breakdown at home.
6. Before You Buy a Car, Compare Insurance Costs. Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).
7. Ask About Discounts, such as good student, safe driver and multi-driver, or bundle your car insurance with your home or life insurance.
8. Reduce Your Coverage. Full coverage may not be necessary for an older car. Consider dropping collision and comprehensive coverage, which cover damage to your vehicle, if your car is worth less than your deductible plus a year’s worth of premiums.
9. Increase Your Deductible. This will bump up your out-of-pocket costs if you’re in an accident, but will lower your monthly insurance premium.
How to Lower Your Housing Bill
Lowering your housing costs is a heavier lift than, say, trimming your grocery bill, but doing so can yield big savings. Learn how you can save on your rent, mortgage and homeowners insurance.
Mortgage
If You Have a Mortgage
10. Refinance Your Mortgage. You may be able to lower your monthly payments by changing the type of mortgage you have (fixed rate, adjustable rate, balloon) or finding a lower interest rate. Do some comparison shopping to see if refinancing can save you some money.
Lowering your interest rate by a couple of percentage points can save you hundreds of dollars each month. Make sure your credit is in good shape, so you can get the best rate possible, then shop around and compare rates and fees from multiple lenders. Mortgage refinance calculator can help you narrow it down to your best option.
11. Rent a Room. If you have extra living space, why not rent it out? For example, if your home is near a college, consider renting a room to a student.
12. Move to a Smaller Place. If you don’t need all of the space, downsize.
13. Move Further From the City. Home prices are usually higher in metropolitan areas than in suburban and rural areas. Moving away from where the action is can add up to big bucks in savings.
14. Find a Place With Lower Taxes. Property (and school) taxes can vary by neighborhood. Rates can range from as low as 0.2% to as high as 4% of the value of your home. That’s a huge difference on your wallet.
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15. Raise Your Insurance Deductible. A higher deductible means lower monthly payments. But keep in mind that if you ever file a claim, you’ll pay more out of pocket.
16. Drop Your Private Mortgage Insurance. If you put less than 20% down when you purchased your home, you likely had to get private mortgage insurance. Your lender should drop the PMI requirement once the balance on your mortgage dips to 80% of the home’s original appraised value or its current market value.
The average annual cost of PMI is based on the loan amount and the borrower’s credit score, among other factors. It’s generally between 0.58% and 1.86% of the original loan’s value, according to Genworth Mortgage Insurance, Ginnie Mae and the Urban Institute.
Mortgage Insurance works a little differently with FHA loans, backed by the Federal Housing Administration.
How to Lower Your Rent Bills
If you’ve been in the market for a one-or two-bedroom apartment recently, you know how deep you have to dig into your wallet to find a place you can afford.
Rent affordability – the percentage of income spent on monthly leases – has risen steadily since 2010. Before then, Americans spent 25% of their income on rent. Now, the average is around 30%, but the lower your income, the higher the percentage you pay.
If You Rent
Renting a home can be a substantial expense, and the amount spent on rent each month can significantly impact your overall financial picture.
Rent is likely your highest monthly expense, and it’s also a recurring cost that you cannot easily reduce once you’ve signed the lease. Letting rent payments take up too much of your paycheck can have both short-term and long-term effects on your wallet.
17. Downsize. Moving your family from a three-bedroom apartment to a two-bedroom unit could lower your rent by hundreds, depending on the city. It may, though, mean doubling up on bedrooms or losing a guest room.
18. Get a Roommate. It seems counterintuitive, but you can lower your rent by upgrading to a larger apartment — so long as you share that apartment with a roommate. Having a roommate not only saves you money on your rent, you can split the costs of your utility payments, too!
19. Move to a more-affordable Place. Rents can vary tremendously depending on the age and location of the rental property. Shop around. Most neighborhoods have lots of rental options.
20. Negotiate. Rent is negotiable. If you’ve always paid on time and you are responsible, your landlord may be willing to lower your rent to keep you as a tenant.
Call your landlord today. If moving isn’t an option, try negotiating with your landlord. They may be willing to lower your rent in exchange for a longer lease or handling your own repairs.
In Pittsburgh, for example, the average rent for a two-bedroom apartment is nearly $1,786, according to the website Apartment List. That’s $893 per person if split between two people — nearly $700 less than the average rent for a one-bedroom.
How to Lower Your Homeowners Insurance Bills
The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying homeowners insurance.
21. Maintain a Good Credit Record. Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied.
To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
22. Shop Around for The Best Rate. Homeowners insurance costs an average of $149 per month, according to analysis. Get several quotes before settling on a policy.
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23. Bundle Your Home and Auto Insurance. This could lower your insurance premium by up to 25%, depending on the insurer and your location.
24. Look for Discounts. Ask your insurer about available discounts. For example, you may be able to save money on your homeowners insurance by paying in full, signing up for electronic payments or having a home security system.
25. Improve Your Home Security. You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations.
These systems aren’t cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you’d save on premiums.
How To Lower Your Utilities Bills
Your monthly utility bills are a smart place to look for quick savings. Small tweaks like adjusting your thermostat or signing up for automatic payments can add up to major savings.
It’s not just you. Everyone’s energy bills are getting more expensive. From December 2021 to December 2022, utility gas services jumped by around 19% and electricity by 14%, according to the Consumer Price Index Summary. That’s a brutal hike for utilities, especially because groceries, housing, and much more are also pricier lately.
26. Request an Energy Audit
Shrinking your energy bill can feel like an uphill battle—who really knows whether their water heater, air conditioner, and other units are working harder than they should?
That’s why an energy audit is the first step forward to lowering your expenses.
Cable and Internet – How to lower your cable bill
What do you do if you want to keep your cable subscription but don’t want to pay big bucks for it? Or maybe you’re just looking for the best TV and internet deals around.
Fortunately, there are plenty of ways to lower your bill without sacrificing your favorite reality shows. From supplementing with other services to negotiating like a pro, read on to find out how to lower your cable bill.
27. Get Rid of Extras. Evaluate which streaming services you actually use — and which you haven’t touched in a while. Canceling those unused services will save you money each month.
If there’s a service that provides just a couple shows you enjoy, consider binging them, then canceling the service. Also take advantage of free trials to watch what you want in that time period, without committing to the expense.
Still plugged in? Learn how to lower your cable bill.
28. Bundle Your Cable and Internet. You can typically reduce your cable and internet costs if you bundle those services with the same provider. You can also reduce your internet costs by switching to a lower speed tier or opting to buy a modem rather than renting one from your provider.
What Can I Say To Lower My Cable Bill?
Once you have determined priorities (channels, features, budget), there are different points to bring up with a customer service representative that might allow you to negotiate a lower price for your cable bill:
- If you have a history of on-time payments, find out if that can be used to get a lower price for your plan.
- If you are getting new service or upgrading your current subscription, find out if free activation or free installation is available.
- Ask about perks like free channel additions or free subscriptions to streaming providers like Netflix and Hulu—while these might not lower your bill, they increase the value of your package.
- If you are bundling your cable TV with an internet plan, ask if there’s a lower internet speed that’s cheaper than what you’re currently using and if that will still give you the speed needed for a quality viewing experience.
- Let the provider know you have seen better offers from competitors and ask if they can match or better that price in order to keep you as a loyal customer.
Cell Phone
It’s no secret that cell phone bills are out-of-this-world expensive. J.D. Power reports the average monthly bill will set you back $157. After your monthly housing, grocery and utility costs, it might just be the next priciest thing in your entire budget.
But are there actual ways you can have a lower cell phone bill? We’re surrounded by a million different cellular providers and too many plans to count. It can be overwhelming when you try to look over all the options to save money on your bill. But guess what—it is possible to save money!
If you’re tired of paying a small fortune every month just to make calls, try these 12 tips to have a lower cell phone bill.
29. Sign Up for Automatic Payments. Setting up automatic payments does more than help ensure you pay your bills on time. Many wireless carriers, including Verizon, AT&T and T-Mobile, also offer monthly discounts on select plans when you sign up for automatic payments.
Like with all automated payments, track your money to make sure you have enough to fund these bills without over drafting.
30. Keep Your Phone Longer. Want a lower cell phone bill? This is one of the easiest ways to do it! Hang on to that phone as long as you can! Does your “old” phone make calls just fine? Great. Keep it a little longer. Don’t get tempted by the latest and greatest shiny cell phone on the market. A phone is a phone.
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31. Change or Remove Your Insurance. Check with your cell phone provider to see if they offer a less expensive protection plan. Standard insurance may provide enough coverage and is often a few dollars less expensive than premium options.
32. Switch Your Plan or Carrier. Take inventory of your plan and data usage, then see if you can get a better deal with your carrier or another one. Switching to a prepaid service may lower your cell phone bill even further.
33. Buy no-contract Phones. Cell phone companies know how to make money—lots and lots of money. One way they do that is through contracts. To buy a phone through them, you’ll usually have to sign a two-year or even three-year contract to use their network. And then they’ll hit you with a ridiculous cancellation charge if you try to switch carriers.
So, what do you do instead? Buy no-contract, gently used phones. These phones are labeled “unlocked” (meaning you can use them with any carrier) and can take a SIM card. Ask around and look online for older phone models to purchase at a discounted price.
A Lower Cell Phone Bill Is What Your Budget Needs
Your budget is all about the numbers. If you have a lower cell phone bill and it becomes a smaller part of your budget, you’ll have more money on hand to hit your goals each month—whether that’s throwing more at your debt or saving up for your future.
Keep track of your cell phone bill and other monthly expenses with our free budgeting tool, EveryDollar. You’ll be able to see exactly where your hard-earned money is going each month and find even more ways to cut back and free up extra cash!
How To Lower Your Electricity, Heat and Water Bills
34. Unplug “Vampire” Appliances. These household items suck up energy even when you’re not using them—and account for 10% of the average home’s energy use. So look around your home for anything that doesn’t need to be plugged in all the time, such as cable/satellite boxes, coffee makers, and charging cables. Unplugging them—or leaving them plugged into a power strip that you can switch off—could put dollars back in your account every month.
35. Dial Down Your Thermostat. Dropping the temperature degrees at night or when you’re away can lower your heating bill. Doing the same on your water heater can also help lower your heating or gas bill.
36. Power Down Energy Hogs. You may reduce your average electric bill with a smart power strip, which shuts off power to devices not in use. Also consider requesting an energy audit from your utility provider to get household-specific insights.
Is Money Tight?
You may need more help if you’re struggling to pay for basic expenses, like utilities. Learn about ways to save on a tight budget, including getting support and negotiating with service providers.
How to Lower Your Membership Bills
Your monthly subscriptions may not feel like a lot, but $7.99 here and $9.99 there can add up quickly. Use these tips to chip away at your membership fees.
Streaming Services
37. Look into Family Plans. Popular music streaming services like Spotify and Apple Music also offer family plans, which allow multiple people to share one account and save big.
38. Limit The Number of Services to Which You Subscribe. Finding one that does double duty can also save you money in the long run. Amazon Prime members, for example, get free streaming and free shipping.
Gym Memberships
39. Cancel Your Membership and Gym-hop. Most gyms and studios will give you a free class or two to test the waters. And many yoga studios hold community classes that are free or by donation. Thousands of free online workouts let you break a sweat without leaving home — and the only cost is dedication.
40. Negotiate for a Lower Monthly Membership Rate. Come to the conversation armed with competitors’ rates and the gym’s own new customer promotions to get the best deal.
Magazines and Newspapers
41. Cancel any Publications You Don’t read Regularly. You can always re-subscribe at a discounted rate. Or, better yet, pick one up at your local library.
42. Downsize Print Subscriptions. Not willing to give up your daily Wall Street Journal or New York Times subscription? Consider opting for digital-only versions or for Sunday-only print deliveries.
How to Lower Your Food Bills
We’ve all got to pay the grocery bill. If you’re both busy and surrounded by restaurants and fast food places (as many of us are), you may be spending more on food than you’d like.
Even if you rarely eat at restaurants, preparing food at home can rack up a more deceptive bill. Throwing out uneaten leftovers is a common practice.
The average family throws away $2,500 worth of food in a year, adding to the estimated one-third of food produced in the world that goes to waste annually.
Related Post: How To Save Money On Groceries
You probably know the basics: less takeout, more cooking. And anyone who’s lived in a college dorm knows microwaved ramen noodles will do in a pinch.
But what money-saving tips will keep you healthy and lower your food bill at the same time? We’ve compiled a few easy, doable changes below—no ramen required.
You probably don’t need to resort to peanut butter sandwiches or instant noodles to cut your food costs. Instead, switch to store brands at the grocery store and take advantage of happy hour deals when dining out. Learn more on how to save on food bills.
Groceries
43. Become a Member. Unlock exclusive sales and coupons by signing up for the store’s loyalty program and downloading its app, if it has one.
44. Make a Grocery List. You’re less likely to overspend if you have a plan. Plus, you can look for coupons and save even more on your groceries. (Learn more about how to coupon.)
45. Opt for The Store Brand. Generic labels and store brands are a surefire way to save money, even if you’re shopping at pricier stores.
Dining Out
46. Skip or Split The Entree. Order an appetizer instead of an entree to shave $5 to $10 of your dining bill. Or save money by splitting an entree with your friend or date.
47. Scope Out Specials. Take advantage of happy hours or other specials, like burger nights, Taco Tuesday deals and game-day promotions.
How to Lower Your Debt Bills
Yes, you can get relief on debt payments. Consider refinancing or consolidating debt to lower your monthly payments. Federal student loan holders have additional options, including income-based repayment.
48. Develop a Budget to Track Your Expenses
A budget can help you monitor how much you’re earning and spending, and what you’re spending money on. Being more aware of your income and expenses can help you to eliminate or reduce unnecessary costs.
Student Loans
Refinancing, consolidating or choosing an income-driven repayment plan can lower your monthly student loan bill.
There are several ways to lower student loan payments. Which option is best will depend on your financial situation and whether you have federal or private student loans.
If you have stable finances but want a smaller student loan payment to free up extra money each month, these strategies could be best for you:
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Student loan refinance: Get a lower interest rate and new term with a private lender.
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Federal student loan consolidation: Combine multiple federal student loans with the Department of Education and get a new term that could lower your monthly payment.
If you need to lower your monthly student loan payment to make ends meet, consider these strategies:
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Income-driven repayment: Decrease your federal student loan payment based on your income.
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Temporary payment decrease: Temporarily reduce your private student loan payment.
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Forbearance or deferment: Stop payments, on federal or private loans, for a set period of time.
49. Apply for an income-driven repayment plan. Federal loans have several income-based options that cap your monthly payments at 10% to 20% of your discretionary income.
50. Ask for a Deferment or Forbearance. These halt your payments for a time. However, interest may still accrue, increasing your overall balance. It’s wise to first apply for an income-driven repayment plan. Private loans don’t come with the same protections, but your lender may work with you to reduce or temporarily suspend your payments.
51. Refinance Your Student Loans. If you qualify for a better interest rate, you can lower your payments by refinancing student loans with a private lender. With this option, you’ll lose any federal protections.
How To Lower Your bills On Credit Card Debt
52. Pay off Your high-interest Debts First. If you have multiple bills to pay, paying off the debts with the highest interest rates and fees first will reduce the amount of money you owe in the long run.
53. Don’t take On More Debt. Work toward paying down what you currently owe before adding any new debt. Avoid any unnecessary purchases. Adding more debt by making unnecessary purchases when you still have debt to repay will make managing your debt more difficult.
54. Consolidate Your Credit Card Debt. Personal loans often have lower interest rates than credit cards. If you qualify for one, you can consolidate your credit card debt with a personal loan to lower your monthly payments and save on interest charges in the long run.
55. Ask for a Lower Interest Rate. Your card issuer is more likely to give you a lower interest rate if you have a solid payment history and good credit score.
56. Transfer Your Balance. Take advantage of a balance transfer offer with an existing card, or open a balance transfer card with a 0% interest rate. Moving your balance to either will allow you to pay it off interest-free for a designated length of time — after that period ends, you’ll face interest on your balance. This move generally requires an excellent credit score.
Track your spending categories. See what you’ve spent across your accounts, upcoming bills, and how much you’re on track to save.
