44 Ways To Drastically Lower Living Expenses

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Are you looking for the best ways to lower your monthly living expenses and save money but aren't sure where to start? 

It turns out that there are many effective ways you can lower your household bills. By combining several methods for lowering your expenses, it's possible to save several hundred dollars per month. 

How to Simplify Life and Save Money

Most of us have a lot of household expenses. One way to simplify your life and save money is to reduce your living expenses as much as possible. 

When you lower your monthly household expenses, you'll save more money at the end of the month that can be used for your financial goals, such as saving for a major purchase or paying down your credit card. 

In the following sections, We'll go over what to cut back on to save money. 

Let's get right into it.

1. Lower Your Cable TV/Internet Bill

You might be paying too much for cable and internet. Many companies offer an introductory rate to new customers. It is often possible to get this rate again after they have raised your rate to the standard rate.

There are a few strategies for reducing your cable and internet bills.

First, do your homework. 

• Find all comparable plans by other providers in your area
• Determine how long you've been a loyal paying customer
• Do you pay your bill on time every month? For how long?
• Do you need the package you have, or can you get a lesser package?
• How much time do you have before your contract is up?
• Do you bundle your cable and internet service? 
• Are you willing to sign another contract?

Call your cable provider and ask the customer service representative can offer you a lower rate. 

If you can't immediately get a better deal, mention comparable plans. Mention your time as a customer and that you pay on time if you do.

If you don't bundle your internet and cable, you can often save between $10 and $40 by doing so, depending on your plan and provider.

Consider canceling premium channels or lowering your internet speed, as this can save you quite a bit each month.

You could sign another contract if you're willing. Many cable companies discount $10 or more per month when you're in a contract.

Perhaps you don't need cable TV at all. Instead, consider getting less expensive services such as On-Demand streaming from companies such as Netflix and Hulu.

2. Shop Around for Auto Insurance

You can lower your auto insurance premium by shopping around for different rates and taking measures to lower your current rate.

At The Zebra, you can compare the prices of auto insurance plans in a few minutes. Going with another insurance provider may save you a considerable amount of money.

Your auto insurance company may not be giving you the best rate. And even if you're happy with them despite your rate, shopping around gives you leverage. 

If you know another company will give you a better rate, call your current company and see if they're willing to match. That way, you can keep your current auto insurance company and still pay a lower premium.

If you don't want to shop for a new auto insurance company, here are some options:

• You can raise your deductible. When you have a higher deductible, your insurance can drop significantly. In fact, when you increase your collision and comprehensive deductibles from $200 to $500, you'll save on average 15 to 30 percent. When you go from $500 to $1000 on your deductibles, you'll save an average 40% or more.
• Maintain a good credit score. Having a better credit score can help insurance costs. Insurance companies offer better rates when you pay bills on time and have a higher credit score because studies show people with higher credit scores have fewer claims.
• Take advantage of low mileage discounts. If you drive very few miles per year, many insurance companies will offer a discount. Ask about this offer and see if you can lower your rate.

3. Save Money On Your Mobile Phone

Another household expense that you can lower is your mobile phone bill.

Here are four ways to cut back on cell phone bills.

• If your phone is more than a year old, paying insurance on it might not make sense. That can save you around $10 a month, or $120 per year.
• Another cost that adds up is financing a new phone. When you're ready to replace your phone, consider getting a phone that isn't cutting edge. A mid-tier phone can cost several hundred dollars less than a brand new top-of-the-line phone, and it may be all you need.
• If you're not using your cell phone plan to its fullest (talk, text, and data), consider a less expensive plan, such as one that provides less data.

4. Save Money on Mobile Data Charges

If you don't have unlimited data on your mobile phone, you may occasionally get charged for going over your limit. 

To mitigate this, turn off data on apps that you don't use frequently. This will prevent these apps from using up your data in the background.

5. Lower Your Heating Bill to Reduce Your Monthly Expenses

Here are some tips if you're looking for ways to save money with propane heat or any other form of heat.

• Turn down your thermostat and bundle up: You'll use less propane this way, and you'll stay warm with an extra layer of clothing or a blanket.
• Consider using a space heater: Space heaters can keep a room warm and will use less power.
• Winterize your windows: If using storm windows is out of your budget, you can place a plastic film to reduce drafts and keep your home warmer.
• Run your ceiling fans in reverse to bring hot air down to floor level.
• Open your curtains and shades during the day to let in the heat from the sun, and close your curtains and shades at night.
• Keep heating vents clear and close off the vents in rooms that aren't used frequently. This will help circulate hot air in rooms you're in.

Check out this guide for many ways to lower your propane bill, much of which can be applied to other forms of heat.

6. Save on Your Electricity Bill

Save money on electricity with these tips.

• Program your thermostat: When you're asleep and not at home, set your thermostat to a lower temperature to put less stress on your electric heat. Program your thermostat only to provide more heat when you're in your home and up and about. Energy Star states that using a programmable thermostat can save you around $180 per year.
• Use LED bulbs: Not only do LED bulbs last up to 50 times longer than an incandescent bulb, but they are much more energy-efficient. This will save you money on electricity and help you lower your monthly living expenses.
• Unplug small appliances that you aren't using: Unplug things such as microwaves, toasters, chargers, and more. This also includes turning off computers when they're not in use. You have the potential of saving up to 10% on your monthly electricity bill when you unplug things that you aren't using.
• Save money on air conditioning-related expenses with tips from this article.

Some electric companies offer a fixed monthly payment based on your average annual consumption. This is an excellent way to budget and save on your electricity bill in the months where you would typically use more power.

7. Use Less Water to Reduce Monthly Expenses

There are many ways to reduce your water bill, which can save you $100 or more each year. Let's go over the top 3 ways to save money on your water bill.

• Use the dishwasher instead of handwashing: Dishwashers use less water than the average amount of water used when handwashing dishes. When in doubt, use your dishwasher with a full load and save throughout the year.
• Reduce shower time by 2 minutes on average: The average shower uses 5 gallons of water per minute. If you shower daily and save two minutes of water a day, you're effectively saving around 3650 gallons of water a year, which can significantly reduce your water bill annually.
• Invest in an efficient washing machine: Look for a washing machine with the WaterSense and Energy Star seals. This means that these machines run on up to 50% less water and use up to 50% less energy per load.

Saving on water every day will add up at the end of the year. It's quite possible to reduce your water bill by $50-$100 each year by cutting back on your usage. 

8. Drastically Cut Expenses by Canceling Unused Subscriptions

You may have unused subscriptions that you’re spending money on and may not even realize it. 

This could include gym memberships, online and mobile games, website subscriptions, apps, and miscellaneous other subscriptions like having beauty products sent to your house every month.

Review all of your monthly subscriptions and memberships and ask yourself if you truly need them. To find potential unused subscriptions, read over your bank and credit card statements.

You could lower your monthly expenses by quite a bit if you really hammer out what you're not using anymore. The app Trim will help you save money by automatically identifying subscriptions you may no longer be using.

9. Use a Discount App When Grocery Shopping

A free app such as Ibotta will allow you to save money on groceries and other commonly bought goods. 

From their website, “Ibotta is a free cashback rewards app that gives you real cash for everyday purchases when you shop with the app and browser extension. Ibotta provides thousands of ways for consumers to earn cash on their purchases by partnering with more than 1,500 brands and retailers.”

You can use Ibotta to earn money whenever you go grocery shopping, which cuts down your overall grocery bill.

Sign up for Ibotta for free and start saving.

10. Save With Public Transportation

Consider using public transit instead of an automobile. Using public transportation can save quite a bit of money.

Additionally, riding a bicycle to local areas will save you mounds of money on gas and car maintenance. As a bonus, riding a bicycle is great exercise.

Public transportation isn't everywhere, however, when it is available, it can truly save you money on everyday auto expenses. 

On top of that, riding a bus or train gives you time to catch up on some sleep, read the news, or chat with people via text.

11. Switch Home Insurance Providers to Save

Similar to switching car insurance providers, look around for a better rate on your homeowner's insurance. One place to look is The Zebra. Here, you can compare different companies side-by-side.

It's always a good idea to try to save on homeowners insurance every couple of years. 

What can you do if you want to save money on your homeowner's insurance but don't want to switch providers?

If you're happy with your current insurance company, consider raising your deductible. Most companies recommend at least $500, but if you raise your deductible to $1000, you can save as much as 25%.

Only insure the value to rebuild your house. If you paid $300,000 for your house, but you can rebuild it for $250,000, then you only need $250,000 in coverage, which will save you money.

Bundle your homeowners insurance with your auto insurance. This can save you between 5% and 15%

Some insurance companies will give you a discount if you make your home more disaster-resistant, such as adding storm shudders, reinforcing your roof, or modernizing your heating, electrical, and plumbing systems such that you reduce your risk of fire and water damage. 

This has an initial cost, but if you plan on staying in your home for many years, you'll save money in the long run.

Many homeowner insurance companies will give you at least a 5% discount if you install smoke detectors, burglar alarms, and deadbolt locks. 

In addition, some companies may offer as much as a 20% discount if you install a sprinkler system, though these can be very pricey, so only consider this if the savings are considerable.

Similar to auto insurance, maintain a good credit score. People with better credit scores generally get better rates on their homeowner's insurance.

12. Create a Budget

Creating a budget will help you lower your expenses because you can identify where you're spending too much money.

A great first step to creating a budget is to make a spending plan with your spouse or significant other.

Use software such as Personal Capital, which will help you track and manage all of your accounts in one place.

Personal Capital offers free online financial software, a mobile app, retirement investment services, and personal wealth management services. Take control of your finances with Personal Capital's personal finance tools.

Another way to create a budget is to use the cash envelope budget system if you want or need more control over your finances.

13. Save Money When You Shop Online with the Honey App

With Honey, every time you reach a checkout on a website, you'll get discount coupons automatically applied if they exist. 

Sometimes you'll save a dollar or two, sometimes much more. 

Additionally, making purchases with Honey will cause you to earn Honey Gold, which can be cashed out via PayPal.

14. Save Money on Drinking Water

Kicking your bottled water habit is the first step to saving money on water. Use a filter, such as a Brita filter, in a pitcher and use your tap water to create filtered water. You can also use a filter that goes directly on your tap.

If you must buy bottled water, consider buying in bulk, such as large water containers or jugs. Buying water like this not only saves you money, but it's better for the environment.

15. Lower Monthly Expenses by Reducing Child Care Costs Where Possible

You can lower your living expenses when you have young children by taking measures to reduce your child care costs. Some of these methods include:

• Shop around for other child care places: If you live in an area where there are multiple child care facilities, compare rates. You may be able to save money by bringing your children somewhere else.
• Take a year off from work to raise your child yourself: If you or your spouse earns enough money, you may actually save money by having one of you stay home with your child. Some people prefer to do this as well to have more time to spend with their children when they're very young.
• Ask your family for help watching your child while you work: If you have family that lives nearby, having a family member assist may save you hundreds of dollars per month.
• Work from home: We learned from the 2020 pandemic that many jobs are doable from home. Ask your employer about work-from-home options, or seek employment in a job that allows you to work from home.
• Consider working part-time: If you can still get health insurance and similar benefits, whether through the marketplace or through your spouse, consider working part-time to save money on child care costs.

16. Move Somewhere Less Expensive To Lower Monthly Rent and Mortgage Costs

You can save money every month by renting or buying a home in a more affordable area. This is especially true if you work from home and don't need to be near your place of employment. Generally speaking, you can find lower rent in more rural areas. 

If you don't need to live in a city or urban area, consider moving into a suburban or rural area to save money on rent. As rent or mortgage payments are generally someone's highest monthly expense, it makes sense not to overpay if you can live somewhere more affordable.

17. Buy in Bulk to Lower Your Grocery Bill

Shopping for groceries in bulk can oftentimes save you a fair share of money. You can shop in bulk at stores like Costco or online at Amazon and other online stores. 

Some great foods you can buy in bulk to save money include:

• Dried Beans
• Frozen meat
• Frozen vegetables
• Dried Fruits
• Nuts in the Shell
• Dried Pasta
• Peanut Butter

When you buy in bulk, it's possible to save 50% or more of what you'd pay for the exact same food if you bought it in a smaller amount. 

When buying dried fruits, pasta, beans, and other staples, buy items that will last several months at a time to maximize your savings.

18. Go Out to Eat Less Frequently and Save 

The average person spends $228 per month eating out every month. $228 per month over 12 months is $2,736. So if you're the average person, you could save $1,368 per year by eating out half as often.

Cooking your own meals can take time, so what do you do when you eat out because you don't have enough time to cook? An alternative to eating out is a meal prep service where the meals are delivered to you.

Home Chef is a great example of a meal prep service company. You can generally get an entire meal for $9 each, plus you'll learn how to cook. 

This is still more expensive than cooking from scratch but generally significantly cheaper than going to a restaurant and eating out, considering you'll need to add tax and tip.

When you cook for yourself, your savings are immense. Here are three examples:

• A pound of store-brand pasta is generally less than $1.49 and can serve four people. That's less than 40 cents per person. 
• A pound of chicken breast is generally in the $4-$6 range. This can serve two people.
• Canned soup runs anywhere from $1 to $3 usually.

In these three simple examples, you can see how much you can save by finding time to make your own meals.

Of course, it's not to say you shouldn't eat out or order in once in a while, but finding time to cook will create an abundance of savings over the course of a year.

19. Avoid Soft Drinks When You Do Takeout

When you order takeout food, skip the soda and instead buy your own soda from the supermarket. 

You can get a 2-liter bottle of soda for under $3, whereas you might pay $3 for a single soda when you order it at a restaurant or from a takeout place.

Or, skip the soda altogether, as it is unhealthy, and opt for filtered water.

20. Cancel the Gym and Workout at Home

Gym memberships can cost $50-$100 per month. That's $600-$1,200 a year just to have access to machines or free weights inside the gym.

To cancel your gym membership and still get some exercise in at home, you can do home workout videos on YouTube for free.

Here are some other inexpensive ways to work out:

• Get a pair of dumbbells at Target or Walmart and start lifting: Dumbbells with weighted plates range from as little as $20-30, but that can easily serve a person exercising at home their entire lives
• Start jogging outside: Jogging is one of the cheapest forms of exercise. You don't need any fancy equipment to get started.
• Use your local park: Many cities and towns have free parks with walking trails or even outdoor gyms where you can do pull-ups, sit-ups, and other exercises.

21. Consider Buying Used Cars and More Fuel-Efficient Cars

The average American who buys a new car spends over $500 per month on their car payment.

When you combine buying a used car that's also fuel-efficient, you could end up paying only half the monthly payment for your auto loan and fill up on gas much less frequently.

Also, consider keeping your car for a few extra years. 

By buying a used car and driving it 3-4 years longer than you would a new car, you'll not only pay less on your monthly auto loan payments, but you'll also eventually not have a loan payment at all, which will cut down on the total cost to own your car significantly.

22. Always Negotiate When Buying a Car

If you're in the market to buy a new or used car, always negotiate. 

You may think negotiating is embarrassing and uncomfortable, but it could save you thousands of dollars over time, depending on how much you're planning to spend on your next vehicle.

To prepare for this situation, research what local cars are selling for, and look up fair market values of the car you want. 

When you're at a dealership, don't reveal the amount you're willing to spend, but instead ask for their best price and then work from there.

23. Maintain Your Appliances and Buy Reliable Ones

When you buy and maintain reliable appliances, you'll have fewer breakdowns and issues, meaning you'll spend less money in the long run.

A washing machine that costs $600-$900 will last for years and years, meaning you'll rarely need to replace it. However, if you get an inexpensive washing machine that lasts less than 3-5 years, then you'll have to replace it multiple times.

Investing in quality appliances may cost you more now, but down the road, you'll have more money in your wallet.

Companies that produce high-quality appliances include:

• Bosch 
• Electrolux 
• Miele 
• Whirlpool

24. Sign Up For Rewards Programs

Rewards programs like Swagbucks can be used to earn money by doing various tasks, but they can also be used to save money. For example, with Swagbucks, you can earn cash back on groceries and other commonly purchased goods.

Additionally, Swagbucks offers cash back at dozens of retailers that you can find all over the country. By using this app whenever you shop, you will save money by receiving a little bit of money back from things you buy.

25. Buy Refurbished and Used Goods

It's tempting to buy new things, however, when you buy refurbished, used, or generic goods, you can save more money.

Some examples of great places to buy used goods include:

• Craigslist 
• eBay
• Facebook Marketplace
• Thrift stores

Buying new things gives us a feel-good feeling, but it also takes its toll on our bank accounts. So instead, shop for deals and shop used, as in the long run, you'll have more money that you can use for other important things in your life.

26. Pay in Cash to Avoid Easily Swiping a Credit Card

It's easy to swipe your credit card, but it's harder to spend cash. Studies have shown that handing over cash when you buy something triggers pain sensors in your brain, making you feel more pain than handing over a credit card.

When you pay in cash, it also feels like you're actually spending money, which makes you think twice before throwing down another $3 on that latte at Starbucks or dropping $20 on a shirt for work.

27. Sleep On All Purchases

An impulsive spender doesn’t think twice before buying something that looks good.. However, after a day or a week has passed, they come back to their senses and decide they really don't need whatever it was they purchased.

Instead of giving in to impulse purchases, sleep on them for at least 24 hours. Then, if you still want the item after sleeping on it for a night, go for it.

If you have trouble with impulse spending, check out our article on how to curb your habit.

28. Make Your Own Coffee at Home

A simple way to save money is to make your coffee at home. By making your own coffee, you won't spend $2-$5 on a cup of coffee from Starbucks or Dunkin Donuts.

You can often buy coffee from stores like Walmart, where each cup ends up costing you less than 10 cents. Compared to $2 to $5 from common coffee places, you'll save quite a bit over time.

Of course, you won't get wealthy by cutting out your daily coffee. The point here is to form good money-saving habits across the board, such as making your own coffee versus buying it each morning.

29. Buy Reusable K-Cups

If you have a Keurig, you probably spend quite a bit of money on k-cups. For example, the average k-cup costs around 75 cents each, meaning you're paying 75 cents for each cup of coffee you make at home. 

When you make your own coffee from grounds, you'll pay about 18 cents per cup.

Keeping this in mind, if you pay $1.50 for a reusable k-cup and then use your own coffee grounds, you'll save 57 cents per cup of coffee, which comes out to $208.05 saved per year if you drink one cup of coffee per day.

That's a great savings for simply switching up one component of your coffee making routine.

30. Find Fun Low-Cost or Free Activities To Do

Entertainment is often a costly expense for many. To save money on entertainment, find low-cost or free activities to do instead. Such activities could include:

• Free events in your local community like summer movie nights, plays by the local theater company, or other performances.
• Museums and similar places near you may be low-cost or free as well.
• Going for a walk in a local park
• Playing games with friends and family members at home or online

Use a site like Groupon to find amazing deals on fun activities around you.

31. Aggressively Pay Down Debt

Having debt can add to your monthly expenses as you're paying these debts each month and incurring interest.

Paying down debt aggressively can put a lot of money back in your pocket since you’re no longer losing money to interest payments.

If you have a lot of debt, consider making extra payments each month by any means necessary. If you're earning rewards on your credit cards, use those rewards to pay off more of your principal balance.

Two methods of paying off debt include the debt snowball method and the debt avalanche method. Here's an article that explains both debt payoff methods.

32. Carpool To Work

Carpooling to work saves everyone involved a bit of money. If you work at a major company in a city, there's a good chance someone you work with may live near you.

If anyone in your office is willing, the two of you, or however many live nearby, can all save money as only one person will be driving. This saves on gas, tolls, and maintenance, and is better for the environment.

33. Refinance Your Mortgage to a Lower Interest Rate

If you have a mortgage, consider refinancing to a lower interest rate. Getting the lowest possible interest rate on your mortgage is crucial to saving money over the long term.

Even a rate reduction of a single point of interest can go a long way over time. Before you refinance, make sure you understand any changes to your terms and the costs associated.

34. Request to Lower Your Credit Card Rates

If you have a history of timely payments with your credit card companies, it's worth calling to request for your interest rates to be lowered. 

Be polite with the representative while also being firm that you would like a lower rate. You can cite that you are considering taking your business to a competitor.

The representative may not be able to help you, so consider asking to speak to a supervisor. If you get to a supervisor and they still won't help you, it might make sense to call back at a later date.

Continue to make on-time payments and keep your balance low or at zero each month so that you show the credit card company that you can be trusted with credit. 

By doing so over time, you may be able to request a rate reduction every year until you reach their minimum rate.

35. Reduce Hair and Nail Expenses

You can save money on grooming expenses by cutting back on how often you get your hair done or go to the nail salon. 

For example, depending on your current habits, it might make sense for you to getting a trim every 3-4 weeks instead of every 2 weeks, and only getting your nails done once per month instead of two times per month.

Additionally, you can learn how to cut your own hair and trim your nails at home by watching YouTube videos. If you're married or live with someone, you can each learn how to cut hair and save by cutting each other's hair.

Halving your grooming expenses can lead to substantial annual savings for some people.

36. Quit Unhealthy Habits

Unhealthy habits like drinking alcohol and smoking cigarettes are often quite expensive. An alcoholic beverage at a typical bar could cost you $5-8, and a pack of cigarettes could cost you $7-10.

You can save potentially hundreds of dollars each month by quitting smoking or drinking. For example, if you smoke a pack of cigarettes per day, you're spending an average of $180 to $240 per month, which comes out to over $2,160 per year.

37. Exercise Good Dental Care

Dental care is expensive, so by taking care of your teeth and practicing good dental care, you can save quite a bit of money over time.

By flossing your teeth daily and brushing twice per day with a quality toothpaste, you can cut costs associated with cavities, root canals, and gum disease.

See your dentist for regular cleanings and to catch any issues before they get worse (and more expensive).

38. Book Flights on Sunday

According to Expedia, the best day to buy airline tickets is on Sunday, because Sundays are the days where airfare is the lowest. Additionally, flying on Tuesdays and Wednesdays are generally the cheaper days to fly, so planning your trips around these points will help you save money.

39. Buy Furniture at Furniture Liquidator Stores

Furniture liquidator stores are picking up loads of furniture from around the country while companies downsize their offices and go remote. This leaves a perfect opportunity for you to get high quality furniture for a lot less money than if you bought it new at a traditional furniture store.

Look for furniture liquidator stores in your area to start saving.

40. Check out Yard Sales and Estate Sales

Yard sales and estate sales are interesting places to find things such as jewelry, furniture, tools, and other things that the former owner no longer uses. You'll save a lot of money not paying retail price by buying it from someone else.

You can often find great deals on eBay and Craigslist as well.

41. Confirm That Your Medical Care is In-Network

If you're having a procedure done, call your insurance company ahead of time to make sure that those involved with the procedure are in-network. If they're not in-network, consider seeking out another care provider if possible.

Having to pay more for out-of-network providers can create medical debt that's tough to pay down in a short period.

42. Sign Up For Patient Assistance Programs

Many offices have a patient assistance program to help you pay for services if you have a low income. Consult with your practitioner's billing department to see if you can work out a payment plan or a lower payment entirely.

You may have to provide information such as bank account statements, tax returns, and pay stubs, but if approved, you're likely to save a lot of money on visits to the practice.

43. Use GoodRx to Save Money on Prescriptions

GoodRx is a free prescription discount card that can save you a significant amount of money on your prescriptions. Enter your prescription information and GoodRx will provide you with coupons for lower prices at pharmacies near you.

Use this coupon in addition to insurance when possible, so that you're getting the best price available on the medicine.

44. Ask About Your Dentist's Membership Plan

Your dentist may have a membership plan to help cover expenses for those without dental insurance.

Dental memberships generally include things like a set number of cleanings, comprehensive exams, x-rays, and emergency visits. You may save over $100 per year by signing up for a membership plan if insurance isn't possible.

An Automated Approach to Saving Money

One way to save money automatically is to use the app Trim. Trim is an app that negotiates your cable, internet, and phone bills for you. It can also negotiate medical bills, bank fees you were charged, and it can lower your credit card interest rates. 

Lastly, Trim will identify subscriptions you have so that you can cancel them if you're no longer using them.

Trim is mostly free, as you only pay a small portion of your first year's worth of savings. So check out Trim today to take a chunk out of your living expenses.

Wrapping It Up

Saving money is important, and reducing everyday expenses is one way of saving more money each month. 

With this extra money, you can get yourself out of debt faster, save for the future, or reward yourself with something new. 

By reducing monthly expenses now, you significantly increase your long-term savings. With enough savings, you may be able to save upwards of $10,000 every year.