Lower Your Fixed Expenses- The economy is not the way it used to be. Not just here in our country, but in the world at large. An average family cannot afford to spend like they used to. If they do, the several expenses they have to pay will tell on their income and savings. Everyone is finding means to generate more income and to cut costs.
You may ask: ‘How do I know if I need to lower my fixed expenses?’ You should rather ask yourself: ‘if my financial circumstances should change, would I be able to afford my current lifestyle?’ If the answer to that question is ‘no’, then you need to find ways to lower your fixed expenses.
One very common way several people address the issue is by increasing savings. While it is good to do that, it is also necessary to increase your streams of income. You can find out online things that you can do to increase your income. There are tons of them and I can assure you that they would be of great help.
Those are not my focus in this post, my focus is to show you another way you can increase your income. You increase your income by cutting your fixed expenses. You never thought about that right? I am here to help. For you who have thought about it but do not know how to go about it, I am here to help you out.
I would be sharing with you 13 ways to lower your fixed expenses. That way you would create some room in your budget to allow for other things that are more important. The sweet thing about this is that you only need to do it once in a year and then you would reap the rewards all through the year.
There are some expenses that nothing can be done about them, but there are some that can be gotten rid of. You should also know that there are some things that may work for someone but may not work for another person. Because our needs differ and our wants are not the same. You should find what works for you and do it.
Some of the measures would be drastic while some would only require minor changes in your lifestyle. Let me go on to show you the 13 ways you can lower your fixed expenses.
11 Ways to Lower Your Fixed Expenses
1. Loan Payment
Make sure you pay off debts as quickly as possible. You can use the snowball method to do this. Rather than you paying off the debt on a monthly basis, take the smallest and pay off as fast as you can. While paying the smallest debt, make sure you are also making the minimum payment on the other ones.
When you are done with that one, take the same payment and make it on the next smallest debt. Go on and on until you are completely debt free. Try as much as possible not to get into any debt anymore
2. Cell Phones
If the cell phone service provider you are using does not provide you with comfortable deals or contracts, then find another service provider. With the way the world is now, there are very cheap phone companies that you can use their services. With all of the options available, there is no reason, you should be paying above $50 per month on cell phone services. Why would you pay for a contract when you can access the same service with the same phone at a cheaper rate?
Another way you could cut bills on cell phones is to have just one phone, rather than have one phone for work and another phone at home. You can also cut bills by making fewer calls and finding alternative means to communicate with people.
3. Get Rid Of Cable
When we were building our savings, we got rid of cable. If you haven’t, you should try to get rid of cable. There are more available options that you can make use of and that are not exactly expensive. You can make use of streaming services like Netflix, Hulu Amazon prime, You can also rent movies and television shows at the library or even use YouTube.
Cutting cable can save you over a hundred bucks a month. Talk about maximizing money! When we cut out cable we found we didn’t even miss the extra programs at all. We found we had more quality time and accomplished more because we were watching shows we wanted rather than zoning out through crappy programs and reruns.
You may find you hardly miss cable at all
4. Refinance Your Student Loans
With $1.3 trillion in outstanding student loan debt in the United States, many feel the impact of their student loan payments dragging down their finances month-after-month.
Because of how much student loan debt there is in the United States, there are companies like SoFi that offer student loan refinancing. They are willing to refinance all your debt at a lower interest rate so that you can save potentially thousands of dollars that otherwise would have gone towards interest.
If you are looking to pay off your student loan in a very fast way or maybe you want to put less towards interest and more towards completing the payment of your loan, this could be a great option.
5. Check For Insurance Rates
How much is your insurance costing you each month and what benefits is your plan providing you with? It’s best to compare insurance rates every now and then to make sure you’re getting the best deal.
It is not a shame if you decide to change or choose another insurance company that will provide you with the benefits that you need at a rate that is convenient for you or that you can afford.
I found out that after you have been with an insurance company for some time, they really are not eager to offer you the lowest rate/ discounts.
You can also see if you can get a discount by bundling your insurance packages as well. I have auto and insurance and renter’s insurance with the same company and they offer me a discount as a result.
6. Move to A More Affordable House
If you feel that the house you are staying is too expensive for you to manage, it is better you leave the place for a more affordable place. As a general rule, your housing expenses should not take more than 25% of your gross income. If this is the case, you may just be setting up yourself for a whole lot of financial trouble down the line.
7. Ask For Discount From Your Internet Provider
At times, it doesn’t hurt for one to ask for a discount. If you are the type that uses the internet so often and wants to try a new company, be sure to ask if they have any introductory promotions that you can take advantage of to cut your cost.
See if the company will offer you a discount based on your customer loyalty (If you’ve been a customer for a while) and the fact that you’ve continued to pay your bill on time.
There are certain possibilities that you will receive some type of discount on your bill because your internet provider wants you to stay with them than lose you to another company.
8. Shop Around And Check For Prices
Before getting anything, try to check around if you can get that product at a much lesser price or offer.
- Save on Your Water, Heat & Electric
None of us want to run around worrying about turning off light switches and powering down electronics all the time. There are simple steps you can take to reduce your electricity, water and heating bill.
A good trick is turning your thermostat up a few degrees in the summer or down a few degrees in the winter you can see a big reduction in your costs.
Put a gallon bottle in the back of your toilet to cut water usage, install a water-saving showerhead and turn your water heater down to 110 degrees (you won’t notice a difference when you shower, I promise).
We also use a power strip on electronics so one can turn them all off at once and install energy saving light bulbs. You can reduce your utility bills by a noticeable amount with these small, painless steps.
9. Cut Off Gym/ Exercise Classes
Buy used gym equipment for your house or join a free fitness meet up (find them on meetup.com or Facebook). Are you’re attached to your gym? (and you’re really using that costly membership), If the answer is Yes for you, see if you can find other ways to save.
Rather than spend a lot on exercise classes, try to do some active chores around the house. Walk a little bit more, chop some firewood, do something that helps you burn fat naturally.
10. Children’s Extracurricular Activity
If your child is such that is talented and you feel he/she might make a headway, then spend the money. But if it is just to while away time, let it pass. You can limit each kid’s toys. That’s right, we’ve set a toy limit. My number is 30 per child, but only 20 toys (total, for everyone) can be out at a time. Sell everything else and exchange old toys for new when your kids receive gifts. This not only saves money, but it makes cleanup manageable for little ones.
11. Apply For Scholarships
Rather than spend all your income trying to send your kid to school, especially if the fees are expensive, try to apply for scholarships for that child. That way either all or at least a part of the fees is not catered for from your income.
I hope you take these steps now that there are no financial burdens or worries. You don’t have to wait till that time comes before you take steps. I would also love to know what steps you have taken in the past to cut fixed costs! Feel free to share with us in the comment box below.