6 Ways to Save on the Expensive Monthly Bills You Can’t Escape
You’ve done what you can to cut back your spending.
You brew coffee at home, you don’t walk into Target and you refuse to order avocado toast. (Can you sense my millennial sarcasm there?)
But no matter how cognizant you are of your spending habits, you’re still stuck with those inescapable monthly bills. You know which ones I’m talking about: rent, utilities, cell phone bill, insurance, groceries…
Although we can’t swipe these off the table for you, we can give you a few tips to help you save on your monthly bills.
1. Credit Cards: Tell Them to Take a Hike
A lot of us are being crushed by credit card interest rates north of 20%. If you’re in that boat, consolidation and refinancing might be worth a look.
That’s where a company like Fiona can be helpful. It can help you find personalized lending options to refinance or consolidate your debt to potentially save thousands of dollars in interest.
Fiona will show you all the lenders willing to help you pay off your credit card and eliminate the headache of paying bills by allowing you to make one payment each month.
If your credit score is at least 620, you can borrow up to $100,000 (no collateral needed) and compare interest rates, which start at 3.84%. The idea is to secure a loan at a lower interest rate, potentially helping you save thousands. Repayment plans range from 24 to 84 months.
Take, for example, Katherine, who faced $12,000 in credit-card debt. Holding her back? The 15.24% interest rate. By refinancing with a 5%-interest, seven-year personal loan, she saved $12,000 in interest.
If she’d kept on the same road, she would have paid something like $14,000 in interest alone over 25 years. Yikes.
So even if you’re simply curious about what’s out there, know that checking rates on Fiona won’t hurt your credit score — and can probably save you in interest.
2. Car Insurance: Find Out if You’re Overpaying
You’re probably overpaying for car insurance. And how would you know, really?
Have you shopped around lately? Have you compared rates from the 20 largest auto insurers that do business in your area? That sounds kind of difficult and time-consuming, doesn’t it?
Fortunately, a service called Gabi will do it for you, and you don’t even have to fill out any forms. Simply link your insurance account and provide your driver’s license number, and Gabi will go to work.
Once you link your insurance account to Gabi, it will:
- Scan your existing insurance plan.
- Analyze what coverage you have.
- Compare the major insurers’ rates for that same coverage.
- Help you switch on the spot if it finds you a better rate.
Gabi says it finds an average savings of $720 per year for its customers.
3. Electric Bill: Invest in a $14 Occupancy Sensor
There are a number of ways to save money on your electric bill, but one of the easiest is to install an occupancy sensor in the busiest areas of your home.
An occupancy sensor (your workplace might have them in meeting rooms) detects when someone walks into a room and will active the lights. No one’s around? The lights stay off.
The U.S. Department of Energy says you can save as much as 30% on wasted electricity with this little device. You can get from Amazon for about $14.
4. Grocery Bill: Earn Cash Just for Buying Groceries
If you’re someone who just wants to get in and out of the store and save money without doing much thinking — there’s an app we recommend. It’s called Fetch Rewards, and all you have to do to earn rewards is take a photo of your receipt.
No scanning barcodes; no searching for offers; no store limitations.
Here’s what to do:
- Download the Fetch Rewards app. (Pst: Enter the code PENNY to earn 2,000 free points!)
- Create an account with your email address or through Facebook.
- Take a photo of your grocery receipt (must be from the past 14 days).
Fetch Rewards finds opportunities for you to earn rewards for your everyday purchases.
Every time you scan a receipt that includes one of more than 250 participating brands, you’ll earn points — without worrying about matching specific product offers.
If the app does find a match, you’ll earn even more. For example, we recently saw an offer of 2,000 points when you purchase a Suave female hair product. And another for 2,000 points for a 12-pack of Blue Moon.
Once you collect enough points, cash out for a gift card to any of a number of retailers. For example, 10,000 points will get you a $10 Sephora gift card. Or 3,000 points will get you a $3 Panera Bread card.
Go ahead, and start fetching points toward gift cards by downloading Fetch Rewards.
(And, yeah, we somehow resisted the obvious “Mean Girls” reference. You’re welcome.)
5. Student Loans: Reduce Your Interest Rates
For some, a lower interest rate could be one of the best steps to paying off student loans.
Try getting a lower interest rate on your federal and private loans by refinancing with a company like Credible. Other companies offer similar services, but we like that the average Credible user saves about two interest points on their current federal loans.
Refinancing will generally mean replacing your laundry list of loans with one (or a few) loans that bring all of your student debt under one umbrella.
This could simplify your life with one monthly payment, instead of several. It may also lower your monthly payment, improve your interest rate and/or give you more time to pay.
It might seem like a small difference, but a lower interest rate can mean a lot of savings over time. It’s helping grad Ashley Williams save more than $18,000 in interest over the life of her loan.
6. Cell Phone: Cut Your Bill to $9/Month
Your phone buzzes. It’s your cell phone provider, which might text you more often than some of your friends.
“90% of your data plan has been used,” it kindly informs you. “We’ll add 1GB of shared data to your plan for $15.”
How nice. Just go ahead and add that to my already-enormous cell phone bill.
If you’re sick of of paying your cell phone carrier hundreds of dollars each month, look beyond the so-called Big Four and into the discount carrier Twigby.
Twigby offers cell-phone plans starting at $9 per month, and new customers get 25% off the first six months of service.
That’s what Zak Wilson did. He’d been paying Verizon Wireless about $180 a month for two lines. So he tried Twigby. For both phones, he’s now paying $60 a month.