8. Bank Fees
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Is your bank charging you a fee to use the account? Or if you don’t carry a specific daily balance?
It’s a total pain to switch banks, but is worth it if you can find another bank or credit union which doesn’t charge fees to store your money there and to use their services.
My bank had informed me that they were no longer offering my account and I needed to switch to an account which came with various fees of $10/month. Um, no thanks.
I found a credit union that not only didn’t have any fees, but also had a cash back feature on the account. Over 10 months, I was able to ‘earn’ back $36 dollars from purchases I would have made anyways, which is far more in interest then I could have earned anywhere else.
9. Automatic Payments
Have you signed up for any ongoing expenses with automatic payments, only to never use the service?
I hate when this happens, because I realize I have wasted so much money and never used the subscription. Like the time I paid $29/month for 14 months on a writing program I used 3 times…
Take the time to review all your automatic payments and make sure you are still using them. If not, cancel that subscription as fast as you can!
However, I am a big fan of setting up automated payments for your regular monthly expenses to be deducted on a specific date in order to prevent missing the deadline and getting stuck with a late fee.
10. Credit Card Interest
Paying interest on something you purchased a couple months ago is really an expense which you need to get rid of, as it is a huge money pit.
I don’t use a credit card personally, because you tend to spend more when you don’t have the emotional connection of handing hard-earned cash and because I don’t like paying for things multiple times over.
However, I realize that not everyone is willing to go without having any credit cards.
If you still want to keep your credit cards, fine, but please, for your sake, get to the point of paying the balance in full every month, so you don’t have to pay for those items again and again in interest.
11. Electricity
This past year, I was able to see tangible savings on my electric bill by using a Time of Use plan, where certain hours are peak and non-peak, and a budget billing plan, where I pay the same each month, through my electric company. Altogether my savings totaled $100 for the year. In order to cut down the electricity down even further, I experimented by turning the AC temperature up by a couple degrees during peak hours in the summer, which resulted in an $14/month decrease for the next 6 months! During the winter, I am trying to keep the temperature a little cooler than normal. There is nothing wrong with wearing a sweater inside when you want to save money. A programmable thermostat will help regulate the temperature inside the home. Turning lights off when not in use and cooking with a crock pot (see mine here) or an electric pressure cooker (I love this one) will help add to your monthly savings.Honeywell RTH2300B1012/E1 5-2 Day Programmable ThermostatTP-Link Smart Plug, No Hub Required, Wi-Fi, Control your Devices from Anywhere, Works with Amazon Alexa (HS100)2 Pack - Belkin Power Conserve Illuminated Switch F7c016q - Bulk Packaging
And the most important step: Track your savings!
As you reduce monthly expenses one by one, the best tips I can give you are
- Keep the line item in your budget the same as the original amount.
- Decide ahead of time where the savings will go (towards your current money dream is a great place).
- Track your savings each month.
Otherwise, the money saved will grow wings and fly away before you can even blink!!
You will be surprised to see how quickly all these little savings will add up and you will be able to make substantial progress towards your money dream by reducing your monthly expenses.
Are you excited about saving on household expenses? Check out how you can save money when you buy glasses up next!
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Like this post? Check out all the rest in :
- Successful Budget Tips Series
Hi! I’m Charissa. I’m on a mission to help hardworking women overcome money struggles and gain financial peace with a Biblical perspective so they can have the freedom to impact their families and communities. Ready to make some changes that will impact your finances in 2020? Click here to get a free worksheet to help you make it happen!
Paula Jackson says
My monthly income is only $1,300 per month. I’m on Social Security Disability and single. I have looked into utiliriescthat offer assistance, based on income. Even if you don’t qualify (I qualify for one), it doesn’t hurt to try. Do your u have a cell phone AND landline? Do you really need your landline? You can save by only a cell phone. Good luck
Charissa says
Hi Paula, thank you for stopping by. That’s a great idea to look into utilities assistance if you are having a hard time pay that bill. Great point about only needing one phone, thank you for sharing!