7 Ways to Cut Your Monthly Bills in 2023
Retirees often use fixed income products to produce a fixed amount of income each month in retirement. That’s why evaluating recurring expenses while planning for retirement is an excellent way to set you up for success. My goal in writing this blog is to share seven easy and effective ways to cut costs and lower the cost of your monthly bills. If you want to learn how to decrease your electricity bill, save on groceries, and cancel unused subscriptions then read to the end.
Key Takeaways:
· Change Your Electric Supplier
· Why Your Insurance Might Need a Shake-Up
· The Shopping Tip You Can’t Afford to Ignore
· Get Economical with Grocery Shopping
· Unsubscribe From Unnecessary Costs
· Are You Ready to Cut the Cord?
· Any Easy Way to Make Extra Cash
Change Your Electric Supplier
The first way to reduce your monthly bills is to switch your electric supplier. Now let me start with a distinction, the company that supplies the electricity does not have to be the same company that delivers the electricity. The two companies that deliver electricity near me are United Illuminating and Eversource which is dependent on the town you live in. While consumers are given a choice when it comes to the company that supplies the electricity. You could either use the electric company that delivers the electricity (United Illuminating or Eversource in my example) or choose from a list of electricity suppliers.
A list of these options for Connecticut residents can be found on energizect.com. Each option will be accompanied by a different supplier rate that can be locked in. It only makes sense to do this if the listed rate is cheaper than buying the electricity from your electricity company. I did this myself a few years ago and was able to save about $0.03 per kWh, which doesn’t sound like a lot. However, if you are using 1,000 kilowatt hours per month then you would be able to save $30 per month for a grand total of $360 saved per year. Electricity prices have recently increased so those who were able to lock in a price prior would (currently) save on their electricity bill.
There are also rebates and incentives listed on energizect.com. You should check those out if you are thinking of purchasing any new appliances, windows, etc. There are different rebates that you can get to help offset the cost of those purchases so you should take advantage of any that apply.
Another way to reduce your monthly bills is to consider purchasing a smart thermostat on energizect.com. I would recommend that you get one that can connect to the Wi-Fi in your house. If you went out and forgot to turn down the heat or air conditioning, then you could simply adjust the temperature with your smart phone. A bonus is that you can turn the heat or air conditioning on a few minutes before you get home to ensure a comfortable temperature on arrival. So, these are a few ways that you can employ to reduce your energy bills.
Why Your Insurance Might Need a Shake-Up
The next way to cut your monthly expenses is to switch your homeowners and care insurance every few years. To illustrate the process, you will find a good rate, it will change in a few years, and then I will shop for a better rate again. Recently, both of my insurance rates had increased after two years. There were no issues with our cars as we didn’t get into any accidents or receive any tickets. There hadn’t been any claims on our house and yet, the price of the combined policies had gone up over $1,000 a year.
That is when I knew it was time for me to make a switch once again. However, there are certain companies that are more mutually owned. For example, I’ve heard good things about Amica insurance from clients as those rates stay a little more consistent. They also give you the opportunity to get a rebate or dividend so there are a few opportunities to save there. At the same time, you must ensure that you have the right liability coverage. I would recommend speaking to an agent and potentially purchasing an umbrella policy if your current coverage is not sufficient.
The Shopping Tip You Can’t Afford to Ignore
The third way to reduce your expenses is to check the internet for cheaper prices before you buy anything. For example, if I am at the store about to make a large purchase, then I type the item name or brand into my google browser. Once I have located the item, I search other stores websites for cheaper listings of the same item. It’s an easy way to price check and with the amount of competition in the marketplace, you may be able to get a price match at the store.
Recently I was in the market to purchase new tires for my vehicle. I went to a shop that sold tires and found the ones that I wanted. I proceeded to go online and find the same tires for a cheaper price. Since the man wanted to sell the tires, he matched the price that I found online which saved me a significant amount of money. Therefore, I would suggest that you shop around online before purchasing your desired item at the first store you see.
Get Economical with Grocery Shopping
The fourth way to cut costs is to be conscious of where you shop for groceries. We all like to shop at stores like Whole Foods, but the truth is that it’s so expensive. There are plenty of generic items that you can purchase at a discount grocery store for less. For example, ALDI’s is more of a discount grocery store. The stores are small and there are less options, but the same items at Stop & Shop or Whole Foods are significantly cheaper there. Therefore, I would recommend that consumers at least purchase generic items such as cereal and bread at a discount grocery store to cut unnecessary costs.
There are a bunch of articles and blogs devoted to tricks and tips that you can use when grocery shopping. I’ll attach a link to my favorite grocery shopping article focused on the deals that shoppers can get at ALDI’s below. For those that don’t have an ALDI’s nearby, I would recommend going to bulk grocers such as Costco. Costco does require a membership fee to enter, but is worthwhile if you plan to do a lot of shopping there.
16 Tips and Tricks ALDI’s Shopper Need to Know: Click Here
Unsubscribe from Unnecessary Costs
The fifth way to reduce your monthly expenses is to unsubscribe from subscriptions that you no longer use. Recently, many companies have shifted to a monthly subscription business plan as they hope to establish a consistent stream of revenue. Unfortunately, consumers tend to sign up and eventually forget to unsubscribe when they no longer use the subscription. There was actually a survey done years ago that found on average, Americans spend $237 per month on monthly subscription services. This is a significant amount of money that consumers can likely reduce by at least $20 by cutting unused services.
To combat this issue, there have been apps created to track which services you pay for each month. The app provides a user-friendly interface that displays all of the different services with a one-click option to discontinue each. Another issue that occurs is that consumers forget their log-in information and don’t want to go through the process of resetting everything. Instead, they kick the can down the road and pay for the service for a couple more months until they are motivated to take care of it.
Another example would be gym memberships. This could apply to both consistent gym-goers and those that sign up after the New Year in search of better fitness. Say you go to the gym consistently, but plan to go on vacation for a month. Many people would forget or neglect to cancel the membership which would cost them about $30-100 depending on the gym. While those who sign up after New Year’s should cancel their membership after a month if they still haven’t gone. This way you can save money and repurchase the membership when you are mentally and physically prepared to start your fitness journey.
Are You Ready to Cut the Cord?
The sixth way to cut your monthly bills is to get rid of your cable provider. Large cable companies such as Comcast give you an attractive rate to get your business. Let’s say that they give you an offer to pay $120 per month for phone, internet, and cable. When those two years are up, your new rate could be double or more. Unfortunately, many consumers fail to realize the change immediately and consequently end up paying an astronomical rate for months.
At that point, if you unbundle your package then you may be able to find a savings opportunity. For example, if you kept Comcast as your internet provider, but got rid of your landline because you no longer use it and cable because it’s too expensive. You can use your cell phone instead of a landline and eliminate the expense all together. For cable, many consumers have shifted towards streaming platforms such as Hulu Live and YouTube TV. Personally, I use YouTube TV which is about $70 per month which is much cheaper than what I paid for cable.
An Easy Way to Make Extra Cash
The final way to reduce your monthly expenses is to sell any unused items that you have online. This would include items that you bought and did not return before the deadline, or gifts that you received without a receipt. Rather than letting it sit or giving it away, you can list the items on eBay for sale. eBay is relatively easy to use and boasts one of the largest auction marketplaces that individual sellers can use. The seller fees on eBay are high and you are responsible for shipping the item and any additional shipping fees.
Another place where you can sell these unwanted items is Facebook Marketplace. Facebook Marketplace gives the seller the option to ship the item or exchange it in person. This can be sketchy, but you can also save money on fees, taxes, and shipping through doing so. In my opinion, you can sell more used items on Facebook Marketplace because the consumers are looking for the cheapest prices. Therefore, if you have any new or used unwanted items that you want to get rid of then you should list them on one of these marketplaces to make some extra money.
If you continue to struggle with cutting your expenses, then I would suggest you make an appointment with a financial planner. If you are interested, I offer a free consultation where we can review your situation and the ways that I could help.