reduce household expenses

Ways to Reduce Your Household Expenses

Eight Tips for Cutting Your Monthly Spending

Everyday household expenses can quickly add up and, if you’re not paying attention, they can end up consuming a large portion of your income. When this happens, saving enough for financial goals like buying a house, paying for a college education, or saving for retirement can become difficult. Below are eight ways you can reduce your monthly household expenses.

Tip #1: Save Money by Bundling Your Services

Bundling your services together with one company is a smart way to reduce your household expenses and save money. Most companies offer deals to customers who combine services like internet, phone, and cable under one umbrella. Call your providers and ask what offers they have for bundling these services. You can also visit websites like allconnect.com that do the heavy lifting for you by finding the best service bundle available in your area.

Tip #2: Only Pay for What You Use

Take stock of what you are truly using every month. Are there services you pay for that you don’t use? Do you still have a subscription to a streaming service you purchased for a specific television show and now you’re no longer using it? Do you have a full cable package but only watch a few channels? Are there any magazine or newspaper subscriptions that you never seem to have the time to read? Compare what you use versus what you pay for in your budget and cancel what no longer serves you.

SEE ALSO: How to Estimate How Much You’ll Need to Retire


Tip #3: Master Your Budgeting Using Coupons and Sales

In 2019, Americans spent 10% of their disposable income on groceries and eating out. Some families reported spending as much as 30% of their income on food! Coupons are a quick way to save big every time you go to the store or your favorite take-out joint. You should also consider signing up for a loyalty card at your local grocery store because over time stores will recognize your frequent purchases and cater future coupons to what items you are frequently buying. Other stores offer point systems where you can “buy” a discount the next time you shop or get a discount at the gas pump. Be strategic about your coupon use and be sure you don’t let a good deal convince you to buy a product you wouldn’t usually purchase.

Think ahead when it comes to future purchases, so you have time to watch for sales. Be on the lookout for end-of-season deals for clothing and housewares, and annual sale events for big-ticket items. For example, Black Friday through Cyber Monday are usually the best days of the year to shop for electronics.

Using coupons and shopping sales can drastically reduce household expenses by the end of the year.

Tip #4: Shop Around for the Best Auto Insurance Premiums

Paying monthly auto insurance premiums is a fact of life for most people, so keep your eye out for better deals. This means shopping around among competing companies, as they often offer deals to lure new customers. If you can’t find a better rate but see a current promotion from your own insurance company, talk to a representative to see if they will apply the discounted rate to your current policy. You can also look for conditional discounts for things like being a college student, being in the military, or being a good driver.

Another way to lower your insurance premiums is to take the advice from tip number two above and bundle some of your insurance policies together. Many companies offer package deals if you combine services like auto and homeowner’s insurance.

SEE ALSO: Social Security Survivor Benefits and How They Work

Tip #5: Energy Efficiency is Money Efficiency

Opening monthly utility bills can be a stressful event, especially for services that fluctuate in use during the cold months when you are using more gas or oil. Here are eight ways you can decrease your energy consumption and your bills:

  • Buy energy-saving appliances and electronics. Replacing an older fridge or energy-efficient dryer can save you big on your monthly bills.
  • Caulking and weatherproofing your house can save almost 8% off your monthly heating bill.
  • Switch to energy-efficient lightbulbs.
  • Make sure to turn off lights and unplug when not in use.
  • Lower the temperature on your water heater
  • Instead of raising the heat, try wearing a sweater and sleeping with more blankets.
  • Install a smart thermostat and make sure the house is only being heated or cooled when people are present.

Using these tips can create the overall effect of lowering your utilities and increasing monthly household savings.

Tip #6: FREE Yourself from Entertainment Expenses

You don’t have to spend a lot of money to have a good time. There are many entertainment opportunities all year round that are inexpensive or free. Instead of going to the movies every weekend, consider streaming movies from home. Libraries are a great resource, as some offer free streaming services like Kanopy or hoopla. If you are spending a lot of money on books or e-books, consider borrowing from the library instead.

It’s also useful to check your local newspaper and community Facebook groups for free events like outdoor concerts, trail hiking challenges or virtual trivia nights. You can also make your own fun! Just pack a picnic, drive somewhere relaxing, and explore for the day. Not only is it free, but it’s also a great way to get exercise.

Tip #7: Pay Your Bills on Time (Every Time)

Life is busy and it’s easy to forget a due date on a bill, but paying bills late almost always results in a late fee. Paying fees for several bills multiple times adds up – and it’s a habit that can result in higher rates that will strain your budget even further. Take advantage of autopay features to make sure you never get another late fee. If using autopay isn’t an option, set reminders in your calendar. Some banks allow you to set up a bill pay option with your checking account, too. All of these options but down the likelihood of late payments – and resulting fees.

Tip #8: Do It Yourself

Develop the skills needed to perform simple repairs, installations, and even food preparation to save on expensive service calls and dinners. In this age of DIY television shows and internet clips, it has become easier than ever to find solutions to some of your household fix-it problems. Consider taking care of your gardening, fixing that running toilet, or painting that guest room yourself. You’ll earn a sense of accomplishment, and save in the process.

You can also save money – and eat healthier – by making a meal plan and picking one or two nights per week to cook at home. Cooking doesn’t need to be time consuming and complex. Start small and expand your repertoire as you gain experience. Mastering several simple recipes will go a long way, and you’ll be cutting your takeout bill every week.

Final Thoughts on Ways to Reduce Household Expenses and Save Money

Many of our everyday purchases and monthly bills seem trivial or small, but they can add up quickly and create long-term financial challenges. Use the eight tips above to reduce your household expenses, increase your potential for saving, and keep your household on firm financial footing.

This information is provided and intended to be used for general educational and informational purposes only and is not intended as a solicitation for you to buy or sell any financial product. This information is not mean to be relied upon as actual financial or tax advice. The ideas, thoughts, and strategies presented here are those of the Management Team and provide an insight to our views at Peak Financial Freedom Group, LLC and its affiliates. None of this information is intended to give you specific tax, investment, real estate, legal, estate, or financial advice. The planning and ideas in this data are not suitable for all individuals or situations. Consult a qualified financial professional before making any investment decision.

All research information provided is public source material. This material may also include additional references to articles, news, commentary, opinions, viewpoints, analyses, and other information developed by Peak Financial Freedom Group and/or affiliated and/or unaffiliated third parties, which is subject to change at any time without notice. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Peak Financial Freedom Group and its affiliates are not responsible for errors or omissions in the material and do not necessarily approve of or endorsed the information provided. This information is provided “as is” and no party makes any representations or warranties of any kind either express or implied, with respect to this information. Peak Financial Freedom Group, LLC and its affiliates do not warrant the information provided to be correct, complete, accurate or timely, and is not responsible for any errors or omissions in the information or any investment decisions, damages, or other losses resulting from, or related to, use of said information. The ideas, thoughts, and strategies presented here are those of our management teams and provide an insight into our views on Peak Financial Freedom Group, LLC, and its affiliates. Every detail presented here is subject to change without notice at any time.

Peak Financial Freedom Group
2520 Douglas Boulevard, Suite 110
Roseville, CA 95661


All presentation data is provided and intended to be used for general educational purposes only and is not intended as a solicitation for you to buy or sell any financial product.  By contacting Peak Financial Freedom Group, you may be offered additional information regarding the purchase of financial products. None of the material presented is intended to give you, nor are the presenters engaged in giving you, specific tax, investment, real estate, legal, estate, retirement, or financial advice, but rather to serve as an educational platform to deliver information; nor is it intended to show you how the strategies presented can specifically apply to your own tax, investment, estate, financial, or retirement position, but rather to offer an idea of how these principles generally may apply. Consult with a qualified investment, tax, legal, and/or retirement advisor before making any decisions.

Stocks, bonds, or mutual funds have risks and can lose principal, even with a stop loss, and there are no guarantees of gains, as past performance is not indicative of future positive investment results. Hypothetical examples are used to explain concepts and are not indicative of potential results you could receive. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund a new portfolio and/or annuity may have tax consequences, early withdrawal penalties, or other costs and penalties as a result of the sale or liquidation. You can’t invest directly into a stock market index. A fixed index annuity with an income rider can protect your savings from losses and provide you guaranteed lifetime income, but you could incur surrender charges, gains aren’t guaranteed, you’ll pay a fee, and guarantees are backed by the financial strength claims paying ability of the issuing annuity company. If you place assets under management with our firm, we receive advisory fees for assets you place under management and commissions from insurance companies you buy products from. Seminars, radio shows, TV productions, book releases, magazine and book promotions are sponsored, promoted and paid for by Peak Financial Freedom Group, LLC.

Peak Financial Freedom Group LLC and Fiduciary Solutions LLC do not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by an unaffiliated third party, whether link to Peak Financial Freedom Group LLC’s web site or incorporated herein and take no responsibility therefore. All such information is provided solely for the convenience purposes only and all users thereof should be guided accordingly.

2019(1), 2020(2), and 2021(3), Five Star Professional Wealth Manager Award - Dan Ahmad and Jim Files have been nominated for and have won the 2019, 2020, and 2021 Five Star Wealth Manager awards. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Once awarded, wealth managers may purchase additional profile ad space or promotional products. Award does not evaluate quality of services provided to clients. The Five Star award is not indicative of the wealth manager’s future performance. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. Award winners represent an exclusive group of wealth managers who have demonstrated excellence in their field by satisfying 10 objective selection criteria. For additional information on the Five Star award, including a complete list of the 10 objective selection criteria and their research/selection methodology, go to https://fivestarprofessional.com.

Investment advisory services are offered through Fiduciary Solutions, LLC, a Registered Investment Advisor (CRD #148118). Insurance products and services are offered through PFFG Insurance Agency LLC, a licensed insurance agency (CA License #0N14013). Peak Financial Freedom Group, LLC is a financial planning and umbrella marketing organization, which enables the provision of multiple financial services under one brand. Peak Financial Freedom Group LLC, PFFG Insurance Agency LLC, and Fiduciary Solutions LLC are affiliated entities with common ownership and control. Jim Files is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1620449) and is a licensed insurance producer with PFFG insurance Agency LLC (CA Insurance License #0F06511). Dan Ahmad is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1491561) and is a licensed insurance producer with PFFG insurance Agency LLC (CA Insurance License #0732913).

© 2020 Peak Financial Freedom Group