Wouldn’t it be great to have a bit of extra cash to spend on fun stuff? Here are 10 things you can do right now to save money on necessary-but-dull bills:
1. Get rid of your landline
Can you remember the last time you used your home phone? Do you even know what your home phone number is? If the answer is no, then it’s time to ditch the landline. Instead, download a free calling app – you’ll be able to make calls (including international ones) for free.
2. Switch utility providers
We can think of more fun ways to spend an afternoon than researching utility providers, but it’s definitely worth doing. If you’ve been with the same company for years, you’re probably tied to an old deal – shop around and you’ll find other companies offering you much cheaper deals if you move over to them.
3. Pay by direct debit
The simplest way to save money on your bills without even trying – you’ll know exactly which day the money will come out of your account and if you agree to a fixed monthly direct debit, you’ll probably get a cheaper deal. And you’ll never incur a late payment fee. It’s a win-win.
4. Lose any add-ons
You know when you’re on the phone to someone and they’re trying to persuade you to add an extended warranty, or get extra insurance cover or whatever, and you say yes just to get them off the phone? It’s time to get rid of all those extras if you don’t need them; for example, if you are a home owner and have house insurance – this policy will cover most things. If you pay extra for international calls, get rid of it and use an app to make those calls for free instead.
5. Do it yourself
It’s tough to find the time to do bits around the house, but if money is tight, you may have to reconsider. Do you really need to be forking out, say, £30 a week for a cleaner? If you share a property, write up a rota divvying up all the cleaning duties and save the money.
6. Barter your services
If you’re a useless gardener but handy with a screwdriver (the tool, not the co*cktail), why not swap skills – you offer to put someone’s Billy bookcases together, while they come over and sort out your garden. You’ll save money on a gardener and have some spare cash to spend on a well-deserved drink afterwards.
7. Be clever with your food shopping
Clear some space in your cupboards, then shop online for good deals on non-perishable food (rice, pasta, tinned tomatoes) and other household goods (toothpaste, toilet paper, kitchen roll etc). If you bulk-buy essential items that are on sale, you’ll end up saving a significant amount on your weekly shop.
8. Turn off the lights
Doing little things such as turning off the lights when you leave a room will have a positive impact on your gas and electricity bills over the time. If you have a spare room or a dining room that you don’t often use, turn off the radiators in these rooms.
**9. Change your mobile phone tariff **
If you’re not using up all your free minutes or data every month, it means you are on the wrong tariff – a quick look at a price comparison site will tell you which tariffs are the cheapest. If you choose a tariff with a different provider to the one you’re currently with, you can switch over and still keep your mobile number.
**10. Slash your memberships **
Make a list of all the ‘extras’ that you pay for monthly – gym membership, TV streaming sites, veg box delivered to your house weekly, etc. Put them in order of how often you use them and then cancel the one you use the least.
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FAQs
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
What is the 50 30 20 rule? ›
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
How can I reduce my monthly bills? ›
Here are 10 ways you can lower your bills:
- Negotiate your bills.
- Switch to a fixed pricing plan.
- Downgrade service.
- Use efficient appliances.
- Rotate services.
- Refinance loans.
- Use a balance transfer card.
- Bundle products.
14 Easy Ways to Cut Your Expenses
- Reduce Your Insurance Premiums. ...
- Eat at Home. ...
- Shop with a List. ...
- Check Eligibility for Food Assistance Programs. ...
- Put a Freeze on Your Credit Cards. ...
- Use Cash Only. ...
- Pay Off Your Outstanding Debts. ...
- Start Cutting Your Expenses Today. There's no better time than now to reduce your expenses.
Budgeting by paycheck
Poorman suggests the popular 50/30/20 rule of thumb for paycheck allocation: 50% of net pay for essentials: groceries, bills, rent or mortgage, debt payments, and insurance. 30% for spending on dining or ordering out and entertainment. 20% for personal saving and investment goals.
How to budget $4,000 a month? ›
For example, say your monthly take-home pay is $4,000. Applying the 50/30/20 rule would give you a budget of: 50% for mandatory expenses = $2,000 (0.50 X 4,000 = $2,000) 30% for wants and discretionary spending = $1,200 (0.30 X 4,000 = $1,200)
How to budget $5,000 a month? ›
Consider an individual who takes home $5,000 a month. Applying the 50/30/20 rule would give them a monthly budget of: 50% for mandatory expenses = $2,500. 20% to savings and debt repayment = $1,000.
How much should all your bills be a month? ›
50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).
How to live with little money? ›
How to live below your means
- Understand your current financial habits. Not sure how to start spending less? ...
- Create an effective budget and stick to it. ...
- Look for ways to reduce spending. ...
- Set financial goals for future success. ...
- Save for emergencies or major purchases. ...
- Pay down debt. ...
- Stay aware of lifestyle creep.
Consider which of these frugal habits work for you and your financial goals.
- Choose quality over quantity. ...
- Prioritize value over price. ...
- Use credit wisely. ...
- Declutter regularly. ...
- Use a budget to guide your spending. ...
- Know the difference between wants and needs. ...
- Be a savvy consumer. ...
- Prioritize your values.
The three biggest budget items for the average U.S. household are food, transportation, and housing. Focusing your efforts to reduce spending in these three major budget categories can make the biggest dent in your budget, grow your gap, and free up additional money for you to us to tackle debt or start investing.
What is unnecessary spending? ›
Unnecessary spending usually goes something like this: you go to the store for a new toothbrush, but you end up leaving with a shopping cart full of items you never intended to buy. You're out $100, but at least you can brush your teeth tonight.
What is the 40 30 20 10 rule? ›
The most common way to use the 40-30-20-10 rule is to assign 40% of your income — after taxes — to necessities such as food and housing, 30% to discretionary spending, 20% to savings or paying off debt and 10% to charitable giving or meeting financial goals.
How can I save money if I have none? ›
11 Foolproof Ways to Save Money On a Low Income
- Create a Budget. ...
- Open a Savings Account or Savings Pod. ...
- Drop Unneeded Monthly Memberships. ...
- Take a Hard Look at Your 'Unavoidable' Expenses. ...
- Save Money on Food. ...
- Save Money on Utilities. ...
- Commit to Buying Nothing New. ...
- Change Where You Keep Your Money.
If you have a large amount of debt that you need to pay off, you can modify your percentage-based budget and follow the 60/20/20 rule. Put 60% of your income towards your needs (including debts), 20% towards your wants, and 20% towards your savings.
Is the 50 30 20 rule outdated? ›
If the 50/30/20 budget was once considered the golden standard of budgeting, it's not anymore. But there are budgeting methods out there that can help you reach your financial goals. Here are some expert-recommended alternatives to the 50/30/20.
What is the disadvantage of the 50 30 20 rule? ›
Drawbacks of the 50/30/20 rule: Lacks detail. May not help individuals isolate specific areas of overspending. Doesn't fit everyone's needs, particularly those with aggressive savings or debt-repayment goals.
What is the 40 40 20 budget rule? ›
The 40/40/20 rule comes in during the saving phase of his wealth creation formula. Cardone says that from your gross income, 40% should be set aside for taxes, 40% should be saved, and you should live off of the remaining 20%.
Why is the 50 30 20 rule good? ›
The 50/30/20 rule is designed to help you reach your long- and short-term goals. For example, expenses in your "wants" category are typically short-term goals, while your "savings" category is usually for long-term goals.
