Did you know you can save money on your fixed expenses? Maybe you are thinking that doesn’t make any sense. They are FIXED expenses. Yes, they are fixed expenses, as in monthly recurring expenses, but how much they cost can be changed by making adjustments to them in various ways. Okay, now that that is out of the way, let’s find some ways to save some money!
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Mortgage
There are a couple simple ways to reduce your mortgage payment ahead of closing on your house: a) Buy a smaller/cheaper place to live or b) Put a larger down payment down on the house. If you are paying for PMI (Private Mortgage Insurance), look to pay down your mortgage a little faster up front. Once you have 20% equity in your home, PMI is no longer required in most cases.
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Car Payments
The easiest way to reduce this fixed cost is to try to not have one or get rid of it quickly. For the most part, you lower your car payments by purchasing a car outright and not having a car payment or putting a larger down payment on the car. Other big contributors to your loan amount are the purchase price and the value of your vehicle if you are trading it in. Car payments are based off of the loan amount, length of the loan, and your interest rate. Due to the rapid depreciation of vehicles, longer car loans can leave you owing more than the car is worth, while you are still paying of the car. Having good credit will lower your interest rate, and starting with a smaller loan amount are the best ways to go.
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Car and Homeowner’s Insurance
First you should consider raising your deductible. You’ll likely have to give your insurance company a call, but it should be pretty easy for them to raise your deductible. Look at a few quotes with different deductibles about $500 apart. Yes, you should increase your emergency fund to match the deductible difference, but you’ll likely save in the long run. The caveats for this are if you’re not a particularly safe driver or you put a lot of miles on your car. The other option is to shop around to some other insurance companies to see how their rates compare.
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Water & Sewer Bill
Water usage is mainly about being conscious of unnecessary water use. Do you leave the water running excessively when washing your hands, brushing your teeth, or washing dishes? Could you shorten your shower by a minute or two? You could set up a timed watering system to water the grass at the recommended times to reduce the amount lost to the atmosphere. I know these ideas may sound silly, but over time, they add up.
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Electric & Gas Bill
Most of you probably know how to save on heating and cooling your home. Programmable thermostats and multiple heating and cooling zones work best, but also don’t forget that by allowing your house to be slightly warmer (in the summer) and cooler (in the winter) can actually save you a considerable amount of money over the course of a year. Also, program your thermostats to be warmer (in the summer) and cooler (in the winter) when the house is empty or if you are traveling. If you have an old furnace, replacing it with a newer, more efficient model will save you money over time, even with the high upfront cost, especially if you are planning on staying in your home long-term. I know it is a constant battle with kids, but teach them to turn lights off. Switching to more energy efficient lighting (CFL or LED) can also help. Unplugging small appliances and surge protectors/power strips when you go on vacation or even a weekend trip can save money, since they constantly draw some electricity.
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Cable & Internet Bill
Many of you may have already ‘cut the cord’, which is great. Hulu, Netflix, Amazon Prime, Disney+, and YouTubeTV are all great ways to get most of your TV watching in without paying a massive cable bill. Depending on where you live, getting a digital TV antenna could be the way to go. Here are a couple links to types of HD TV antennas: one for a garage or attic and one for inside. You can go to https://www.antennasdirect.com/ to find out the best direction to point your antenna to get your local broadcast stations. They do broadcast in high definition.
The picture above is the antenna we use, and we get NBC, ABC, CBS, FOX, CW, PBS, and lots of other channels. You can also gauge the internet speed you need, since internet service is now coming in tiers. BE CAREFUL when changing plans and cancelling! If you’re in a contract, you could end up paying fees in the hundreds of dollars if you change too early. -
Cell Phone Bill
Two big things here: data plans and type of phone. How much data do you use? Do you need an ‘unlimited’ data plan? Do you own your phone outright or do you pay for it every month? Many people just get used to their cell service and go along for the ride, which is just fine for some people, but you may want to consider a change in your cell phone provider or data plan. You can substantially lower your bill, especially if you don’t use a lot of data every month.
One potential option is to figure out how much data you do use, and how much you need. Can you get out of the ‘phone renting’ cycle? If you’re paying $30-$50 per month for your phone and then paying for data, it is probably one of your largest, if not the largest, monthly bills outside of your rent, mortgage, or loan payments. Some people need large data plans, but you can buy a good phone for less than $300 that doesn’t cost $700-$1000 or more. A few years ago, we switched to Google Fi, which is a cellular service provided by Google, and we have been happy with it. -
Video Subscriptions
There are many options out there now, but what is the right amount of services for you? Because if you ‘cut the cord,’ but still get Netflix ($8.99-$15.99), Apple TV ($4.99), and Disney+ ($6.99), you’re still paying at least $21 per month plus any taxes ($252/year plus any taxes). Could you stagger your video subscriptions through the year and watch each service you want for a few months, cancel and then change to a different service that you want to watch their original movies and shows? It would take a little work, but if you had Netflix for 6 months, Apple TV for 3 months, and Disney+ for 3 months, you would pay $90 for the year plus taxes. You’d save over $160 for the year. If you do have subscriptions and they allow downloading shows videos, download some over WiFi onto your phone or tablet, so you aren’t paying for data streaming while you are out.
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Audio Subscriptions
Audio subscriptions are growing as well, but not all services are created equal. Some services, like Spotify, Google Play Music, and Pandora, allow you to download entire radio stations for offline listening, which reduces your data use. You’d have to spend more time personalizing the service on Apple Music and Amazon Music Unlimited. If you have an audio subscription, you should only have one and tailor it to your use. Another option is to just listen to the radio in the car and stream free stations from your device through different streaming services or radio station apps.
BONUS SAVINGS:
One thing many people are unaware of are digital tools that your library provides. You may have limits on your borrowing or viewing each month, but these options can save you some money. Some of the services we’ve used through libraries have been OverDrive, Libby, RBdigital, hoopla, and Kanopy. Check the website of your local library to get more info!
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