18 Simple Ways to Reduce Monthly Household Expenses to Save Money

Updated: Jun 12


When looking to cut expenses and reduce your household bills, many challenges can present itself. From higher utility rates to increased insurance premiums, it has never been more imperative to find ways to save money when achieving financial freedom.

If you're trying to save money in the home, and have wondered how many more times you must tell other family members to turn off the lights in a room no longer being used, then stay tuned.


In this article, you will discover 18 ways to help your household save money by cutting bills and expenses.

Here are 18 Ways to Reduce Household Expenses and Save Money:


1. Manage Your Household's Thermostat and Electronic Use

2. Improve Your Home's Insulation

3. Seal Off Door Drafts

4. Swap to LED bulbs

5. Update Your Water Heater

6. Use Energy-Efficient Appliances

7. Utilize Power Strips

8. Transfer to a 0% APR Credit Card

9. Try Carpooling

10. Cancel Unused Memberships and Subscriptions

11. Cut Your Cable

12. Reduce Unnecessary Grocery Purchases

13. Limit Online Food Delivery

14. Negotiate Your Bills

15. Search for Affordable Grooming Expenses

16. Shop Insurance Rates

17. Pay with Cash

18. Establish Spending Limits

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1. Manage Your Household's Thermostat and Electronic Use Take a deep dive into where your money is being spent by starting off researching your monthly utility expenses. According to EnergyStar.gov, the most significant expenditures of energy in a single-family home are heating (29%) and electronics (21%).


One way to help mitigating loss in energy expenses is by updating your thermostat. There are two smart thermostats that can be utilized by your smartphone to help control the temperature of your home: Nest Learning Thermostat and Honeywell Home Wi-Fi Smart Thermostat.


A recommended resource to learn other ways to save on heating and cooling is an article written by TheIntentionalMom, "15 Simple Ways to Save on Heating and Cooling in Your Home."

2. Improve Your Home's Insulation Did you know that the most common ways your home loses heat are because of a poorly insulated attic, improper sized furnace, holes, and leaks in exterior walls, and leaky ducts?


According to the GreenHomeGnome, proper insulation can save as much as 20% on your energy bill and reduces the cost of heating and cooling by over 40%.


To resolve the issue, consider adding insulation to your attic. At just under $20 per roll (15" x 32'), you can purchase rolls of insulation from Amazon.

3. Seal Off Door Drafts Another common source for energy loss is from air leaks in your drafty doors. Check your doors for air drafts coming into your home. Fortunately, this is a relatively easy fix.


You can add a door draft stopper for around $0 or less. Learn more about how to Identify the Problems You Want to Fix in your home.

4. Swap to LED bulbs

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If you continuously run a high electrical bill, consider replacing the light bulbs in your home and patio with Compact Fluorescent Lamps (CFL) or Light Emitting Diodes (LED) light bulbs.


Replacing just five of the most "used light fixtures or bulbs with models that have earned the ENERGY STAR...can save $45 each year".


Check out the Wi-Fi and Wink/Alexa compatible LED bulb by CREE or the GE Link Smart Bulb.

5. Update Your Water Heater It is estimated that electric water heaters consume about 4,000 watts for three hours a day costing about $0.10 kWh. For a 50-gallon tank, it is estimated to cost roughly $781/year.

Consider reducing the hot water temperature to 120-degrees Fahrenheit or replacing the unit with an EnergyStar-approved appliance if it is an older model such as an EcoTouch Electric Tankless Water Heater.


6. Use Energy-Efficient Appliances

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Do you love doing laundry? Of course not. While it is no one's favorite chore, did you know that according to the U.S. EPA, a clothes dryer uses about 769 kWh?


The four most expensive appliances in your home are clothes dryer (769 kWh), refrigerator (596 kWh), clothes washer (590 kWh), and your favorite, a dishwasher (206 kWh).

According to the EPA, you can save money by switching to cold water when washing your clothes. With newly formulated cold-water detergents, these brands can now get rid of stains and ensure your fabrics are clean while using more than half the energy it takes to use hot water for cleaning.


Also, when washing, do not fall into the habit of filling up your washing machine with small loads. Ensure you are washing full loads as the machine requires just as much energy to operate no matter how many clothing articles are in it.

Unlike washing machines, the more clothes you have in a dryer, the longer it takes to dry and the more energy it uses. You will need to determine which load size is appropriate but consider air drying on a drying rack if possible or drying on a low setting. While not all clothing articles can dry on a rack, many items will dry on it, and this alone will save you money every month.

Many homeowners are unaware of "Peak Hours." Peak hours are designated times established by your energy company on when charges for electricity are inflated due to high demand. Times do vary based on where you reside, but traditionally, the hours are from 4 p.m. to 7 p.m.

An interview conducted by Bankrate.com reported that Parul Goel tested the use of washing clothes before peak hours and recognized savings of about $30 per month.


7. Utilize Power Strips Did you know, appliances not in use but plugged into your outlets, count for approximately 5% to 10% of your energy consumption, according to HowStuffWorks.com?

Power strips work great to protect your appliances from electrical surges, but these items have no ability in stopping power from continually being used.


By switching to smart power strips, the power is cut off entirely ensuring appliances aren't continuously sucking electricity from the outlets. Take a look at your power strips and consider making the switch.

8. Transfer to a 0% APR Credit Card If you're paying interest on your credit cards, consider transferring to cards that offer 0% APR. There are many great cards out there from Chase Freedom Unlimited to Capital One Quicksilver Cash Rewards which also provide high reward points.

Another option is to call your credit card company and ask for a rate reduction. If you're in good standing with the company, never missed a monthly payment, and show you have been responsible, the firm may consider it and be willing to work with you.

9. Try Carpooling

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Americans are driving less. According to a study by the University of Michigan Transportation Research Institute, the annual mileage accumulated by Americans has reverted back to levels not seen since the mid-90s.


Also, it is becoming more beneficial for commuters to carpool. If you live in a big city, many highways and interstates reward drivers with the advantage of driving in an HOV lane if the automobile occupies more than one person.


Do you have a coworker who lives within a few miles from you and you can rideshare? By taking turns to drive, not only are you keeping the atmosphere clear of pollutants, but you are saving money on fuel.


10. Cancel Unused Memberships and Subscriptions

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Tally up the total cost of memberships and monthly subscriptions being paid each month. Next, determine what's required and a necessity. Are you actively using it? Is it "nice to have"? You can easily save $100 or more every month instantly.

11. Cut Your Cable How do you scare cable companies? Tell them you're canceling the service and all of a sudden, discounts and deals are easily offered. It is this lack of integrity why online streaming services are so popular and revolutionizing the entertainment world.


By now, most households have alternate options such as Netflix, Hulu, Amazon Prime, Disney Plus, and Apple TV.

Recommended Article:

Your Guide to Cable Alternatives

7 Best Apps to Lower Monthly Bills & Expenses

12. Reduce Unnecessary Grocery Purchases It isn't surprising to learn many Americans overspend on groceries and waste quite a bit too. Fortunately, there are several tips to save money while shopping.

SouthernLiving.com recommends reviewing the store ads for weekly sale items before shopping. Also, try incorporating vegetables from meals into other meals such as soups or a side dish with your baked chicken, for example.

You may consider coupon clipping, buying generic brands, and buying in season, but I recommend using 5dollarmealplan.com. For $5 a month, you will receive a weekly meal plan that is designed to keep your meals low-cost, creative, and fresh and helps you save time grocery shopping.

Choose between two custom plans: Classic Plan or the Gluten-Free Plan.

13. Limit Online Food Delivery

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With the ease of technology apps, making it is faster and easier to order meals online, it can be tempting, especially in a time crunch. It is also destroying your budget. You are paying in excess anywhere from 15-40% more per meal. Find alternatives by picking up the meals yourself, or prepping a similar meal at home.

14. Negotiate Your Bills With app and website services such as Billfixer, Billshark, Trim, Truebill, you authorize companies to negotiate your bills on your behalf. Each firm is different in its fee structure, but the cost is usually a set percentage in the amount they save you. If they don't save you money, then there is typically no cost but check their fee structure for exact terms.

For example, if a firm can save you $100 on your phone bill and the percentage is 30%, then $30 will be the cost of getting this assistance.

15. Search for Affordable Grooming Expenses How much are paying for haircuts, shampoos, face washes, and nails? If you are still looking for ways to cut expenses, can you reasonably extend the waiting period of getting a haircut by one week? How about switching to a shampoo that is a few dollars less?


For example, if you are using a name brand tea tree shampoo and conditioner, this may run you up to $50 compared to an all-natural organic combo for around $26.

While it can be enticing to purchase products from your local salon, shop around and see if online stores such as Amazon can sell you the products at a lower price.


16. Shop Insurance Rates Are you overpaying on your insurance premiums? Many households are not aware because they haven't shopped around. At least once a year, you should explore the possibilities of new rates.


As technology continues to improve, firms are finding it easier to operate more efficiently and more cost-effective. Try rate browsing with Allstate, eSurance, and Liberty Mutual.

If you are one of those consumers who have insurance but don't mind overpaying because of loyalty to a firm, then it is completely understandable.


However, if you are looking to cut expenses, it can save you money but browsing around online to receive quotes on an automobile, health, life, and renter's insurance.

17. Pay with Cash

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Start paying cash for items when possible. According to an article by Psychology Today, cashless payments have drastically increased, finding "only 14% of American consumers use cash for everyday purchases".


While it is convenient to use a debit or credit card, "paying with a credit card is less painful than paying with cash." You are more likely to stick to your budget when paying cash because of the associated pain factor that goes along with it.

You can physically see your money disappearing. This makes you become a more responsible spender while second-guessing purchases.

18. Establish Spending Limits When budgeting your monthly expenses, establish spending limits on your categories. For instance, in the entertainment category, perhaps you limit your monthly spending to $200.


While it is challenging to do this for categories that include fluctuating expenses such as utilities, you can reign in your expenditures to limit the possibility of your overspending.

Cutting expenses in your household budget doesn't have to be complicated. By following just a handful of the tips mentioned above, you can reduce household budget leakage to save you more money and to assist you in managing your money better


BONUS:


Limit the Possibility of Your Overspending  


Another option is going back to the basics and better utilizing your checking account. While not available with every banking institution, most savings accounts offer mobile apps which give you daily, weekly or monthly reminders to keep you on track with your savings or spending goals.


If you're shopping for a new savings account, compare your options and recognize what tools you will need to reach your financial goals. Consider a bank or credit union's online experience, their mobile apps, initial start-up fees (if any), ability to transfer between accounts, interest rates, and how accessible your money is.



#savingmoneyonutilities #laundry #programmedthermostats #smartthermostats #averagegrocerybill


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