We hear a lot about small and simple ways to see savings over time. But what if you want something a little more substantial when it comes to your monthly budget?
As they say, “don’t sweat the small stuff.” If you’re tired of cutting out the lattes, here are a few strategies that could result in big savings each month, freeing up your budget for better things.
1. Refinance your mortgage
If you haven’t refinanced your mortgage in a while, you might be surprised to see that rates remain near record lows. When you refinance your mortgage, you can potentially get a lower interest rate, as well as a smaller monthly payment. Free up monthly cash flow and pay less in interest over time.
If you’re hoping to refinance your mortgage, there are some companies that can provide you with access to good rates and terms.
- AmeriSave. With AmeriSave, it’s possible to get a customized loan quote online in minutes. Then, you can choose the terms most likely to fit your needs.
- Rocket Mortgage. With a variety of tools and options, Rocket Mortgage can help you decide what’s likely to save you the most money each month, or in the long run. Plus, you can connect with a local mortgage broker if you want.
- Quicken Loans. The grandfather of online mortgages, Quicken Loans can help you refinance or buy a new place. Quicken Loans is America’s largest home lender, with a variety of refinancing options.
Compare rates and companies to get the best deal on your mortgage refinance. Once you’ve locked in the savings, they remain in your budget for the months and years to come.
2. Get new insurance quotes
Once you get insurance, you might feel like you’re set — and never look at your premiums again. However, that might be a mistake. Getting a new quote could potentially reduce your insurance premium by hundreds of dollars per month, especially if you get quotes for multiple policies.
Use a website like Policygenius to compare prices and see if you can save by bundling. After you have two or three quotes, consider going to your current insurer to give them a chance to meet the price.
You might be surprised at how much room you can create in your budget once you lower your insurance premiums.
3. Raise your deductibles
While you’re getting new insurance quotes, double-check to see if you can save even more money by raising your deductible.
Just by raising your deductible on your car insurance from $500 to $1,000, you might be able to save up to 9% on your premiums. Depending on where you live, and other factors, that could mean big bucks back in your pocket each month.
This applies to homeowners or renters insurance, and can even apply to health insurance. Before you raise your deductibles, though, consider the size of your emergency fund. Make sure you have enough money to cover your deductible.
Once you have your emergency fund set up, you can improve your cash flow by boosting your deductible.
4. Change your living situation
According to the Bureau of Labor Statistics, the average American household spends $21,409 per year on housing. That’s a pretty significant chunk of change each month.
If you want to reduce what you spend on housing each month, you can consider changing things up to improve your monthly cash flow. Some ideas for adjusting your living situation can include:
- Downsize. Be realistic about the size of the home you need. You might be able to save money by getting rid of your stuff and moving into a smaller place. Create space in your home and in your budget.
- Move in with someone else. Could you reduce your housing costs by moving in with someone else? That could be moving in with family, friends or a significant other. Run the numbers. In many cases, if you can split living costs with someone else, everyone saves money.
- Let others move in with you. Another possibility is to let others move in with you. Get a roommate, or rent out your room to visitors passing through. You can use the money to put toward your housing costs, allowing you a chance to reduce what’s coming out of your pocket for living expenses.
5. Cancel unused subscriptions and memberships
At first glance, it might seem like this is small potatoes. But the reality is that all of your subscriptions and memberships could be adding up to hundreds of dollars per month.
Review whether you’re really using that gym membership effectively. Do you really need subscriptions to seven different streaming services? Are you paying for bells and whistles you don’t need on a variety of different platforms?
You can use a service like Truebill to help you find the subscriptions and memberships that are costing you the most. It can also help you negotiate monthly bills (including cable) in order to get discounts and save even more money.
Once you start looking for recurring expenses — expenses you’re paying without even thinking about it anymore — you’ll be shocked at how much you’re spending without realizing it. Cancel your unwanted subscriptions with Truebill and reap the monthly savings.
While cutting out your coffee each day can help the pennies add up, you could potentially see even bigger benefits by looking at where the bulk of your dollars is going on a regular monthly basis.
Look for ways to cut back on your biggest costs, and you could put more money in your pocket each month — and those savings remain on autopilot.
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