iCrowdNewswire Mar 2, 2021 2:07 AM ET
Financial hardship can strike anyone. You don’t have to be bad at money management or unemployed to find yourself trapped in the cycle of living paycheck to paycheck. Big expenses can come out of nowhere that completely destroy your savings and throw you off track. That unexpected car repair, medical debt or forgotten bill can leave you wondering how you’re going to make your rent or pay your phone bill in the coming weeks.
Although it’s a frustrating place to be, you can find ways to lower your monthly expenses even when you think you’ve cut out everything. Here are three potential solutions that could help you not just save more now and in the future. As you explore additional ways to save, make sure that you are also covering the basics. This includes cutting out wasteful spending, sticking to a budget and lowering costs wherever possible.
Use a Cashback Credit Card
Cashback cards can return 2 to 5 percent of every charge, so you can easily pay back debts and get financially stable while raising your credit score. Rewards cards help you save on everything from gas to groceries. It doesn’t sound like much, but when you are trying to reduce monthly costs, you’ll find that every dollar counts.
A cashback card can be used to cover things like your car insurance premium, cell phone bill and even utilities. As long as you pay back your card on time each month, you’ll be able to keep a decent debt-to-credit ratio and stay current with all your financial responsibilities. It’s not wise to rely on credit cards in lieu of earnings, but in some cases, you need a card to get you through a difficult time. Saving money each month can become easier when you have a card that generates earnings just by spending wisely.
Refinance Your Mortgage
This is a big-scale change that can save you hundreds of dollars a month. Refinancing your mortgage isn’t as difficult as you think, and it can provide thousands of dollars in savings each year. If you’ve experienced job loss or taken on more debt, then you’ll want to ensure that your housing situation is stable without jeopardizing your credit score. If you refinance your mortgage, you can trade your current home loan for one that reduces your interest and lowers your monthly payments. Extending the duration of your mortgage might not appeal to you, but for those who are happy with their current home and just want to live more comfortably, refinancing is worth considering.
Check Your Energy Consumption
Do you leave laptops and cell phone chargers plugged in even when you aren’t using them? Are your kitchen appliances still connected to an outlet despite not being used? How many lights are on in the house when you’re not in the room? There are many habits that raise the cost of your energy bills each month for no reason. Make sure that you’re mindful of how much your house is consuming; swap out your showerhead for a water-saving model. Changing your light bulbs to LED can reduce your home’s energy use by 25 percent monthly.