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How to Cut Spending & Save Money on Bills [21 Proven Ways]

Are you experiencing a financial crisis? Is there a debt you are trying to get rid of?

Whatever your problem is, you may want to search for the best ways to cut expenses.

If you trim expenses on the family budget you will be able to feel more financially stable and have an opportunity to save for your goals.

When you learn how to cut monthly expenses you will have a chance to relax more, retire earlier, have a stress-free life, repay the debt, and save for different things that present value to you. Sounds exciting?

cut spending

Read on to find out the best options on how to cut back on spending and become financially fit.

How to Drastically Cut Household Expenses


Average annual household expenditure

Decrease Television/Internet Expenses

Did you know that 320,059,368 Americans are surfing the net on a daily basis? 

Although television has become common among people these days, it is certainly not the obligatory item to have at home. This is especially true when you are short of cash and want to cut down on bills. 

Why don’t you cut your bill in half by reducing cable bill and getting rid of your TV? After all, this will help to improve your financial stability to a certain extent. 

Instead, ask your friend or colleague to use their computer, join your local library, or surf the net on your work desktop once the working day is over.

You may lower your monthly bills significantly if you consider additional options apart from Netflix. For instance, you can benefit from a free 30-day trial period from Hulu Plus and receive plenty of useful content and network shows. If you are satisfied you may purchase a monthly subscription later for just $7.99.

Trim Cable Bills and/or Phone Bills

Have you ever called the phone or cable service company and asked to lower your monthly bills? What about asking for an extra discount?

If you want to save money on bills it pays to be bold and proactive. Once your promotional period finished, you may call your phone/cable provider and ask for a reduced monthly payment as you can’t afford to pay in full. You might even talk with the cancellation department but the manager will most likely meet you halfway and offer a discount or additional perks. They value each customer so you have a chance of getting upgraded or provided lower monthly fees. Try your best to save money on a cable bill.

Reduce Spending and Avoid Shopping Spree

How often do you go shopping? Do you always create a shopping list or tend to make impulse purchases? 

Neither impulse buying nor spending spree is your best friend if you want to save money monthly. You probably have more significant needs and goals for the future that won’t be achieved unless you follow professional tips on saving money on day to day expenses including shopping. Firstly, you should create a plan in your head and know exactly what you need to purchase and how much it will approximately cost. Don’t be tempted to use credit cards or take too much cash. Chances are the shops will empty your wallet.

Purchase High-Quality Goods

Experts suggest you should buy high-quality products and items if you want to reduce your household expenses. 

This might seem more expensive at first but will save you hundreds of dollars in the long run. For instance, invest in the best quality of your bed, fridge, or even shoes and you won’t need to waste more money on constant repairs. 

Think of other items you use on a daily basis and don’t be stingy to make a good purchase that will last longer. After all, you get what you pay for.

Don’t Eat Out Too Often

How much would you save if you decided to control spending habits? 

The Economic News Release of Consumer Expenditures by the BLS estimated that the average U.S. household spent $3,459 for eating out. 

The cost-cutting ideas will definitely help you stay on track of your finances and save more cash. One of the best ways to cut back on spending your money on food away from home is starting to cook yourself. There are thousands of easy and quick recipes that are healthy and don’t demand a lot of time. 

Also, you may ask your friends to come over with any dish of their choice, so that you set the table together and minimize expenses.

Get a Roommate

Getting a roommate can be a wonderful opportunity to save costs for living expenses. Those who rent out an apartment or a house with more than one bedroom may also get a housemate. This way you two will share your monthly bills and lower your expenditures.

How to Save Money on Monthly Bills and Reduce Expenses

Pay Annually

One of the greatest ways to save money on bills is by paying annually for necessary expenditures. Many types of house insurance, auto insurance, car tax, and TV license come with additional charges if paid monthly. When you decide to pay annually for these services upfront you can avoid paying this fee and decrease the cost of your insurance.

Repay the Debt

When you have a certain debt you are committed to paying it off. 

Whether it is a small loan, a credit card, a mortgage or an auto loan, this debt becomes your commitment. It may prevent you from achieving long-term goals. Consider making regular and on-time payments and increase the amount you repay monthly so that the total sum decreases faster. Once you become debt-free it will reduce monthly expenses and help you focus on relevant needs.

Find a Side Gig

Many people want to find ways to cut down an electric bill or save on bills in general. 

How can you do that if your stable monthly income isn’t enough? 

Well, how about landing a second part-time job? Or maybe even a third one? Having a full-time job is normal but more and more people tend to find a side gig. Think about things you may do to earn some extra cash. You may become a tutor, bake cookies for sale, babysit, walk the pets, or become an Uber driver.

Define Your Wants and Needs

Determining what you want and what you really need can help you lower monthly bills. 

There are obligatory things such as paying rent or buying groceries and those things we want to get but don’t necessarily need right away. 

There is a 30-day general rule to avoid impulse shopping. If you believe you need to purchase a certain item, put the money for it on your savings account and wait for 30 days. If you still want to purchase it after the month is over, go ahead and spend that sum. But often this easy trick will help you save cash.

Manage Your Car Expenses

Your car needs a lot of money every month. Consider trimming costs by using public transport when you aren’t in a hurry. Using public transportation from time to time will not only help to reduce bills but also is healthier for the environment.

Carpool to School or Work

Sometimes you may also minimize spending by choosing to carpool with your colleagues. If you live in the same area you can create a schedule and take turns driving your coworkers and picking them up. The same can be done for school children whose families live near each other and want to save time and money.

Reduce Electricity Bill Tricks

How else can you start cutting household expenses? 

It’s easy to do by purchasing energy-efficient light bulbs for the whole apartment or house. LED and CFL bulbs may be more expensive than the regular ones but you will notice the difference. Just invest a little more in advance, and these bulbs will save you more cash in the long run. Each bulb will save you over $0.66 per month. Even if you replace five light bulbs in the house you can save about $40 annually and lower your bills.

Switch the Electronics Off When Not in Use

Another way to cut electricity bill is by switching off and unplugging the devices and electronics you aren’t using at the moment. When you are off to school or work, it pays to unplug even those devices that are turned off. In addition, this trick will protect your devices from power surges.

Avoid Taking Out Frequent Loans

Requesting loans can become a rather expensive solution for any unexpected costs or urgent bills. Although a financial emergency might happen with anybody, there are alternative ways to get the necessary funds. Try to tap your family members or friends, ask your employer to give you a salary in advance. Try to avoid loans as they often come with high interest rates and can cost a lot in the end.

Sell Your Car

Some people want not just to reduce the bill but also earn some money for the upcoming expenses or save for an important event. Selling a car can be a great option for people who don’t use it often. This will also help you save cash on its insurance and get additional money for things you may need at the moment.

Sell Things You Don’t Need

Have you heard about Craigslist or eBay? They can bring you some extra dollars in times of monetary shortfall. Just search around for the used items you don’t need anymore. Go ahead and sell them so that this money can be used to cover urgent expenses or used for savings.

Make Automatic Debt Repayment Plans

Do you have an installment loan? Well, we have good news for those who want to lower monthly bills and fees. You can sign for automated monthly debt payments and it will lower the interest rate for many loan types. Moreover, this easy technique will ensure you don’t miss a payment. This automatic monthly billing system is available for all installment loans.

Cut Back Your Entertainment Costs

Cancel Your Club Membership

How often do you really go to your local gym? Is it affordable to keep on paying for a gym membership when you may cancel it and save cash? Those who visit the gym once in a while or several times a month are just wasting their funds. Instead, you can do a workout at home and lower spending.

Cancel Magazine Subscriptions

You may have subscribed to a magazine or newspaper a while ago and completely forgot about it. If you aren’t interested in a particular issue at the moment, cancel your subscription. You will see how much you can save annually.

Trim Travel Expenditures

Although people tend to travel more these days, we should also keep in mind that various special offers or travel credit cards may help to drastically lower expenses. Also, consider staying at hostels or not luxury hotels that offer the same service but cost cheaper and can save your money. 

Here are some of the most drastic changes than can be implemented to drastically cut expenses. Follow these easy tips and tricks to start living on less and save more in a big way.