Reducing Your Expenses

Regardless of whether your expenses are fixed or variable, you can always research options to lower your monthly costs.

Below are common types of bills, along with tips to potentially lower their cost:


  • Move to Cheaper Apartment

Benefit(s): Moving could lower the cost of your rent and could also serve as an upgrade if you’re not happy where you’re currently residing.

Note: This does require a lot of research. You want to make sure you check reviews, visit the area, and reach out to the leasing office to ask questions.

Car Note

  • Refinance Your Car Loan

Benefit(s): Refinancing essentially means renewing the loan for a lower interest rate. Depending on how high your initial interest rate is, this may be a great option for you.

Note: It’s important to check to see if there may be fees. You don’t want it to cost more than it’s saving you money.

Pre-Requisite(s): For this to work successfully, the recommendations are having a credit score of over 620-650, no late payments from the time you financed the vehicle, no collections on your credit report, and some positive equity on your car.

Car Insurance

  • Check for Discounts

Benefit(s): Contacting your current insurance company can open doors to discounts you may not have been aware of.

Pre-Requisite(s): If you’ve had car insurance for six months or longer and no recent citations/accidents, you should be golden for discounts.

  • Switch Insurance Companies

Benefit(s): If there’s no discounts available, try checking if your insurance premium would be cheaper somewhere else. Insurance companies love when you switch to them; so, they might have better offers for you.

Pre-Requisite(s): You should have had car insurance for six months or longer and no recent citations/accidents to qualify for the best rates.

Cell Phone

  • Change Your Plan

Benefit(s): If you have Wi-Fi at home, consider lowering your monthly costs by opting for a cheaper data plan.

  • Switch Phone Companies

Benefit(s): Contract Holders – depending on the company, there are promotions that offer to pay off your termination fees, if you switch to their service. This is awesome, considering it could cost $300+ to terminate your contract.

Benefit(s): Non-Contract Holders – it’s even easier to switch if you have no contract because you’re not bound by any fees. Just shop around for cheaper phone services and make the switch if it makes sense.

Note: If you’re financing your phone, you will have to pay off the remaining balance for you to terminate your contract. You can call for a payoff quote or check online to see your remaining balance.

Other Loans

  • Debt-Consolidation

Benefit(s): Debt-Consolidation combines all your current loans and/or credit card balances, into one loan with one interest rate and one balance. It’s convenient for those that have high interest rates and high credit card balances.

Note: You have to apply for a loan that covers the outstanding balances of all your other loans and/or credit card balances.

Pre-Requisite(s): In order to qualify, you would most likely need to use an asset as collateral. When using an asset, it needs to have enough equity to cover the amount you need to loan.

{Equity is when the asset is worth more than what is currently owed. For instance, if my car was worth $10,000 and I only owe $7,000 on my car loan, that would mean I have $3,000 in equity to use as collateral.}

Pre-Requisite(s): Since you are applying for a loan, you will ideally have a decent credit score of 640+, no late payments since the disbursement of your other loans, and no collections/derogatory marks on your credit score.

Although most of these tips come with terms and conditions, the difference in costs here and there add up tremendously.

Before you opt for a big change, make sure you’re aware of all the pros and cons, so you don’t end up in a worse situation than when you started.

As always, feel free to come to me with any questions or comments. Click here to send a personal message. 😊

-Kat B.