Looking for a way to lower your bills and reduce monthly expenses? Here are some tried and true tips and tricks for cutting down on spending. Some items like adjusting your cable bill or saving on groceries are quick and easy wins, while refinancing a mortgage can save you a lot of money but takes more time and energy.
How to Lower Housing Costs
Lowering your housing costs is one of the most challenging ways to lower your monthly bills, but can have the most significant payoff in the long run.
1. Refinance your mortgage. Lowering your interest rate can save you hundreds of dollars a month – refinancing a $400,000 loan from 5% to 4.5% could save you around $150 a month! First, check your credit score for free at Credit Karma and make sure you are in good shape. Be sure to shop around to find the lowest rate possible. Keep in mind that refinancing will most likely involve closing costs which could cost thousands dollars – you’ll want to make sure the long-term cost savings are worth it.
2. Get a roommate. While this is certainly not possible for some people, if you have a 3 bedroom house with an empty room, consider finding a roommate. If your mortgage payment is $1,500 a month, getting a roommate to pay just $500 a month could cut your payment by 33%! Splitting utilities with a roommate might provide additional savings.