20 Ways to Drastically Cut Household Expenses

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household expensesThese days, far too many people are struggling financially with household expenses and wondering how they will make ends meet. While a simple solution is to increase the amount of money you make, it is an obvious solution.

However, that may be more complex for some. An alternative might be a better way, and in this article, we would like to offer some ways to cut the amount of money you currently spend. This might help you stretch the amount of money you make every month.

Below, we have compiled 20 things you can do to stretch your money further.

Ways to Cut Household Expenses

1. Pay Off Your Car

Today’s cars are far more expensive to purchase and operate monthly. One of the best ways to save money is to figure out how to pay off the loan or financing early. Most banks allow you to make double payments to repay the loan faster without penalty.

2. Reduce Your Rent or Mortgage

For most people, housing is likely the single largest living expense. For some, depending on what part of the country you live in, a home can take up upwards of 40% of your take-home pay. You can reduce your monthly housing expenses by downsizing to a smaller, cheaper house or apartment while saving money.

3. Consider Getting a Roommate

One of the best ways to help with living expenses, especially in some of the more costly metropolitan areas, is to share the costs with one or more roommates. This is easier to accomplish if you are single, but even if not, finding a third person with whom you are compatible might just work out.

4. Reduce Household Electricity Usage

You can help to keep the monthly bill for electric usage lower by turning off the lights, lowering the thermostat temperature in the winter months, and raising it a few extra degrees in the winter to keep the amount of time the HVAC runs to a minimum.

5. Review Your Cable/Internet Service

Another luxury you should consider cutting out is cable television and Internet services. However, if you are too dependent on them, you should look into bundling them from the same provider. Most cable companies offer discounts if you sign up for cable television and Internet at the same time.

6. Cut Back on Clothing Expenses

With money being tight for many people, new clothes should be way down on your priority list unless necessary for work. The cost of new clothes these days can quickly eat up the money in your bank account, and if you need a pair of shoes or jeans, consider shopping at a store like TJ Maxx or Ross.

7. Cut Back on Eating Out

Another significant expense is likely food, including lunches at work. Many people like to eat out once or twice a week and buy food for lunch a few times per week. Unfortunately, doing this a lot adds to a lot of money spent for the month. Consider cooking most of your meals at home and only going out to eat on a special occasion.

8. Eliminate Your Debt

According to statistics, the average household has racked up quite a bit of debt these days, mostly on credit cards. For many, this comes from unexpected medical bills and other expenses that came up without having the money to cover them. The quicker you can pay down the debt, the lower your monthly expenses will be.

9. Find Free Activities

The good thing about lowering expenses is that not everything has to cost money. While many things you like to do for fun involve spending money, there are things you can do that don’t cost money or very little. You plan a day at your local park or beach if there are any nearby that you don’t have to drive to. Here’s a list of free things to do.

10. Review Your Current Service Plans

These days, your phone and Internet are likely an integral part of your daily existence, primarily if you work from home or have an outside sales job. One thing to consider is frequently reevaluating your service plans, especially your phone. Cellphone service companies occasionally offer cheaper plans that may save you money.

11. Eliminate Your Cable Service

Cable television has become very expensive, and if you aren’t watching as much TV, consider cutting the cord and eliminating it. Several options for television programming, such as YouTube TV and Disney+, don’t require cable television; they only need an Internet connection.

12. Bundle Service

If you are currently paying separate service providers for cable, Internet, and phone, you should consider checking around to see if there are any local providers that offer discounts to bundle multiple services together on the same billing.

13. Shop at Thrift Stores

When you need to replace household items and clothing, consider looking for a local thrift store. These businesses sell used or slightly used items that are found in most fancy department stores but at a lower price. Just remember that you get what you pay for most of the time.

14. Cancel the Gym Membership

If you are like so many people these days, you go to the gym at least a couple of days a week to try and lose a few pounds or stay in shape. You might consider converting a space or room into a home gym. This will save you on the weekly or monthly fees charged by the local gyms and fitness centers.

15. Use Coupons

Manufacturers and other businesses offer money-off coupons to entice shoppers into buying specific items in stores and online. There are several ways to find these coupons; most local newspapers still offer coupons in daily and Sunday newspapers. You can also find coupons and online coupon codes all over the Internet. Rakuten and Swagbucks are two sites that you can check out that have coupons

16. Refinance Your Loans

Personal and student loans can strain your budget. One way to keep your expenses lower even when you have multiple outstanding loans is to consider refinancing at a lower interest rate. This will help you reduce the amount that you have to pay each month. I used Sofi to refinance my student loans. They have options to refinance both. Learn more below.

Refinance your student loan here.

Refinance your personal loan here.

17. Stay Home

While you might like to go out on the town occasionally, consider having a movie night at home. Renting a movie on your television service would be far cheaper than going to the movie theater when you factor in all of the associated costs (parking, theater tickets, and refreshments).

18 Take Advantage of “Happy Hour”

Most businesses, like restaurants and bars, offer special food and beverage pricing during a specific time. These are often referred to as Happy Hour, even though the duration of the special pricing is usually far longer than an hour.

19. Avoid Late Fees

Banks and credit card companies make a killing off of the late fees that they charge for people missing or making payments late. These tend to add up and often come at the worst time. To avoid these fees from being added and costing you extra money that you weren’t expecting, follow these tips.

20. Use Groupon

Lastly, you can save quite a bit of money these days by looking for Groupon deals frequently offered for local businesses. These Groupons can add up to a significant amount of savings.

Cutting household expenses is not only doable but also empowering. You may save a lot of money and prepare for a more secure financial future by practicing these techniques. This will free up your time to concentrate on the important things in life.

Image Credits: DepositPhotos

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Jason Butler is the owner of My Money Chronicles, a website where he discusses personal finance, side hustles, travel, and more. Jason is from Atlanta, Georgia. He graduated from Savannah State University with his BA in Marketing. Jason has been featured in Forbes, Discover, and Investopedia.