20 Ways to Save Money and Stretch Your Household Budget
Originally Posted on 5/29/2020 These days, it seems like everyone’s looking for ways to cut costs and stretch their income further. Fortunately, you can take some simple steps to reduce your household expenses without making radical changes to your standard of living. When combined, these small adjustments can add up to significant savings each month. Here are 20 things you can start doing today to lower your bills, secure better deals, and begin working toward your financial goals. Refinance Your Mortgage - For prime borrowers, mortgage rates are at or near historic lows. Depending on your current mortgage rate and the terms you choose, refinancing could save you a sizable amount on your monthly payments. There are fees and closing costs associated with refinancing, so you’ll need to talk to your lender to find out if refinancing is a good option. Evaluate Your Insurance Policies - If it’s been a while since you priced home or auto insurance, it may be worthwhile to do some comparison shopping. Get quotes from at least three insurers or independent agents. Try bundling your policies to see if there’s a discount. And inquire about raising your deductible, which should lower your premium.1 Bundle Cable, Phone, and Internet - You can also save money by bundling your cable, phone, and internet services together. Shop around to see who is willing to give you the best deal. If switching is too much of a hassle, ask your current provider to match or beat their competitor’s offer. Better Yet, Cut the Cord on Cable. In many cases, you can save even more if you cancel your cable subscription altogether. An antenna should give you access to the major stations, and many of your favorite shows are probably available on-demand through a less expensive streaming service subscription. Revisit Your Wireless Plan - You can often save by switching from a big brand to an independent, low-cost carrier. If that’s not feasible, ask your current provider for a better deal or consider downgrading to a cheaper plan. Adjust Your Thermostat - Turning your thermostat up or down a few degrees can have a noticeable impact on your monthly heating and cooling costs. To maximize efficiency, change your filters regularly, and make sure your windows and doors are well insulated. Use Less Hot Water - After heating and cooling, hot water accounts for the second largest energy expense in most homes.2 Repair any leaks or dripping faucets, install low-flow fixtures, only run your dishwasher when full, and wash clothes in cold water when possible. Lower Overall Water Consumption - To decrease your water usage, take shorter showers, and turn off the sink while you brush your teeth and wash your hands. If you don’t have a low-flow toilet, retrofit your current one with a toilet tank bank or fill cycle diverter. And irrigate your lawn in the morning or evening to minimize evaporation.3 Conserve Electricity - Save electricity by shutting off your computer at night and installing energy-efficient LED light bulbs. You can minimize standby or “vampire” power drain by utilizing power strips and unplugging idle appliances.4 Purchase a Home Warranty - While there is an upfront cost, a home warranty can provide some protection and peace of mind when it comes to unexpected home repair costs. Most plans provide coverage for major systems (like electrical, plumbing, and HVAC) and appliances (such as your dishwasher, stove, or refrigerator). Outsource Less - From lawn care to grocery shopping to minor home repairs. We pay people to do many things our parents and grandparents did themselves. Try cutting back on the frequency of these services or taking some of them on yourself. Prepare Your Own Meals - It costs nearly five times more to have a meal delivered than it does to cook at home.5 Home cooking doesn’t just save money; it’s healthier, cuts down on calorie consumption, and can offer a fun activity for families to do together. Plan Your Menu - Meal planning is deciding before you shop what you and your family will eat for breakfast, lunch, and dinner. It can help you lower your overall food bill, eliminate waste, and minimize impulse purchases. When possible, buy produce in season, and utilize nutrient-rich but inexpensive protein sources like eggs, beans, ground turkey, and canned tuna. Plant a Garden - You can save even more on produce by growing it yourself. If you have space in your yard, start-up costs are relatively minimal. Gardening can be a rewarding and enjoyable (not to mention delicious) hobby for the whole family. And it could save you around $600 per year at the grocery store!6 Review Memberships and Subscriptions - Are you paying for services and subscriptions you no longer need, want, or can utilize? Determine if there are any that you should suspend or cancel. Give Homemade Gifts - Who wouldn’t appreciate a scratch birthday cake or tin of cookies? And if you enjoy crafting, Pinterest and Instagram are full of inspiring ideas. Show your recipient how much you care with a homemade gift from the heart. Minimize Your Debt Payments - The best way to reduce a debt payment is to pay down the balance. But if that’s not an option right now, try to negotiate a better interest rate. If you have a good credit score, you may qualify for a balance transfer to a 0% or low-interest rate credit card. Keep in mind that the rate may expire after a certain period—so be sure to read the fine print. Get a Cash-back Credit Card - If you regularly pay your credit card balance in full, a cash-back credit card can be an excellent way to earn a little money back each month. However, they often come with high interest rates and fees if you carry a balance. Commit to only using it for purchases you can afford. Ask for Deals and Discounts - It may feel awkward at first, but becoming a master haggler can save you a lot of money. Many companies are willing to negotiate under the right circumstances. Always inquire about special promotions or incentives. See if they will price match (or beat) their competitors. And if an item is slightly defective or nearing its expiration date, ask for a discount. Track Your Household Budget - One of the most effective ways to reduce household expenses is to set a budget—and stick to it. A budget can help you see where your money is going and identify areas where you can cut back. By setting reasonable limits, you’ll be able to reach your financial goals faster. Want more help getting a handle on your finances? Use the budget worksheet below to track income and expenses—and start working towards your financial goals today! Please reach out to me for a downloadable version. HOUSEHOLD BUDGET WORKSHEET Expected Actual Difference HOUSING Mortgage/taxes/insurance or Rent Utilities (electricity, water, gas, trash) Phone, internet, cable Home maintenance and repairs FOOD Groceries Restaurants TRANSPORTATION Car payment/insurance Gas, maintenance, repairs OTHER Health insurance Clothing and personal care Childcare Entertainment Gifts and charitable contributions Savings, retirement, college fund INCOME Salary/wages Tips and other MONTHLY TOTALS Total Actual Income Total Actual Expenses ADDITIONAL SAVINGS WE’RE HERE TO HELP We would love to help you meet your financial goals. Whether you want to refinance your mortgage, save up for a down payment, or simply find lower-cost alternatives for home repairs, maintenance, or utilities, we are happy to provide our insights and referrals. And if you have plans to buy or sell a home this year, we can discuss the steps you should be taking to financially prepare. Contact us today to schedule a free consultation! The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs. Sources: Insurance Information Institute - https://www.iii.org/article/twelve-ways-to-lower-your-homeowners-insurance-costs Department of Energy - https://www.energy.gov/energysaver/water-heating/reduce-hot-water-use-energy-savings Money Crashers - https://www.moneycrashers.com/ways-conserve-water/ Harvard University - https://green.harvard.edu/tools-resources/poster/top-5-steps-reduce-your-energy-consumption Forbes - https://www.forbes.com/sites/priceonomics/2018/07/10/heres-how-much-money-do-you-save-by-cooking-at-home/#2c53b2f35e54 Money - https://money.com/gardening-grocery-savings/
Add Value To Your Home With These 9 DIY Improvements
Whether you’re prepping your house to go on the market or looking for ways to maximize its long-term appreciation, these nine home improvement projects are great ways to add function, beauty, and real value to your home. The best part is, once you’ve secured the materials, most of these renovations can be completed over the course of a weekend. And they don’t require a lot of specialized skills or experience. So grab your toolbox, then get ready to boost your home’s appeal AND investment potential! 1. Spruce Up Your Landscaping Landscaping improvements can increase a home’s value by 10-12%, and many buyers put a lush lawn at the top of their wish list. Fill in bare spots with grass seed or new sod for an average return of 417% and 143% respectively. 2. Clean The Exterior Use a pressure washer to remove built-up dirt and grime from your home’s exterior, walkway, and driveway. This simple project can add as much as $15,000 to a home’s sales price. 3. Add A Fresh Coat Of Paint New paint is one of the most cost-effective ways to update a home. Maximum your return at resale by sticking with a neutral color palette that will appeal to a broad range of buyers. 4. Install Smart Home Technology Buyers are often willing to pay a premium for homes with smart technology features. Fortunately, many smart devices are simple to install and pay for themselves over time by making your home more energy-efficient. 5. Modernize Your Window Treatments Upgrading your window coverings has gotten easier and less expensive in recent years. A number of retailers specialize in affordable shades and blinds that are simple to hang yourself. 6. Replace Outdated Fixtures Give your home a facelift by swapping dated light fixtures, faucets, and cabinet hardware for modern alternatives. For maximum impact, prioritize replacing those that are in highly visible areas, like your entryway and kitchen. 7. Upgrade Your Bathroom Mirror Much like a work of art, your vanity mirror serves as a focal point for your bathroom. Replace a basic mirror, or try adding a frame. Several retailers offer DIY kits that can be made to your specifications. 8. Shampoo Your Carpet According to Consumer Reports, you can rent a machine and purchase cleaning fluid and supplies for around $90. With an average return on your investment of 169%, it’s well worth the effort and expense. 9. Customize Your Closet A closet remodel can add $2500 to a home’s selling price. And while a professional renovation can cost upwards of $6000, there are many less expensive but high-quality DIY closet systems you can customize and install yourself. GET A COMPLIMENTARY ANALYSIS OF YOUR PROJECT We’ve been talking averages. But the truth is, the actual impact of a home improvement project will vary depending on your particular home and neighborhood. Before you get started, contact us to schedule a free virtual consultation. We can help you determine which upgrades will offer the greatest return on your effort and investment.
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