How to Lower Your Bills: 41 Ways to Save
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Lead Writer Need to find more money in your budget? Evaluating ways to lower your bills is a good place to start.
Small tweaks can help you save on things like groceries and homeowners insurance. Cutting more significant expenses, such as rent, mortgage and car payments require more legwork but can yield a bigger budget boost.
Here's how to lower your bills and save on your monthly expenses in these categories:
Housing
Lowering your housing costs is a heavier lift than, say, trimming your grocery bill, but doing so can yield big savings. Learn how you can save on your rent, mortgage and homeowners insurance.
Rent
1. Downsize. Moving your family from a three-bedroom apartment to a two-bedroom unit could lower your rent by hundreds, depending on the city. It may, though, mean doubling up on bedrooms or losing a guest room.
2. Get a roommate. It seems counterintuitive, but you can lower your rent by upgrading to a larger apartment — so long as you share that apartment with a roommate who contributes to the rent.
In Pittsburgh, for example, the current median rent for a two-bedroom apartment is $1,364, according to the website Apartment List. That’s about $682 per person if split between two people, compared with $1,120 median rent for a one-bedroom place by yourself.
3. Negotiate. If moving isn’t an option, try negotiating with your landlord. They may be willing to lower your rent in exchange for a longer lease or handling your own repairs.
» Learn how much to spend on rent
Mortgage
4. Refinance your mortgage. If you're able to lower your existing interest rate, you could save money on your monthly mortgage payment.
Our mortgage refinance calculator can help you understand how much you could save.
Get your free credit score and make sure it’s in good shape, so you can get the best rate possible. Then shop around and compare rates and fees from multiple lenders.
5. Drop your private mortgage insurance. If you put less than 20% down when you purchased your home, you likely had to get private mortgage insurance. Your lender should drop the PMI requirement once the balance on your mortgage dips to 80% of the home’s original appraised value or its current market value.
The average annual cost of PMI is based on the loan amount and the borrower’s credit score, among other factors. It’s generally between 0.46% to 1.5% of the loan amount, according to a December 2023 report from the Urban Institute's Housing Finance Policy Center. Borrowers with excellent credit get the lowest PMI rates. (Learn about credit score ranges.)
Mortgage insurance works a little differently with FHA loans, backed by the Federal Housing Administration. (Learn more about FHA mortgage insurance.)
Homeowners insurance
6. Shop around for the best rate. Homeowners insurance costs an average of $160 per month, according to a NerdWallet analysis of the average cost of homeowners insurance. Get several quotes before settling on a policy.
» Get started: See home insurance quotes
7. Bundle your home and auto insurance. This could potentially lower your insurance premium by up to 30%, depending on the insurer and your location.
8. Look for discounts. Ask your insurer about available discounts. For example, you may be able to save money on your homeowners insurance by paying in full, signing up for electronic payments or having a home security system.
» Learn how to save on home insurance
Utilities
Your monthly utility bills are a smart place to look for quick savings. Small tweaks such as adjusting your thermostat or signing up for automatic payments can add up to major savings.
Cable and internet
9. Bundle your cable and internet. You can typically reduce your cable and internet costs if you bundle those services with the same provider. You can also reduce your internet costs by switching to a lower speed tier or opting to buy a modem rather than renting one from your provider.
Cell phone
10. Sign up for automatic and paperless payments. Many wireless carriers, including Verizon, AT&T and T-Mobile offer monthly discounts on select plans when you sign up for paperless billing and automatic payments, which also help ensure you pay your bills on time.
Like with all automated payments, track your money to make sure you have enough to fund these bills without overdrafting.
11. Change or remove your insurance. Check with your cell phone provider to see if it offers a less expensive protection plan. Standard insurance may provide enough coverage and is often less expensive than premium options.
12. Switch your plan or carrier. Take inventory of your plan and data use, then see if you can get a better deal with your carrier or another one. Keep in mind that the cheapest phone plans are typically prepaid.
» Learn how to compare cell phone plans
Electricity, heat and water
13. Dial down your thermostat. Dropping the temperature degrees at night or when you’re away can lower your heating bill. Doing the same on your water heater can also help lower your heating or gas bill.
» How do you compare? Here’s the average gas bill
14. Power down energy hogs. You may reduce your electric bill with a smart power strip, which shuts off power to devices not in use. Also consider requesting an energy audit from your utility provider to get household-specific insights.
Is money tight? Use this tool if you need help paying bills ASAP. Or call your provider to learn about hardship programs that may help. Here’s a script for what you could say on that call.
Transportation
Transportation costs, whether for a car or a monthly metro pass, fall squarely into the “needs” category of most budgets. Find more room in your budget by lowering what you spend on getting around every month.
Car payment
15. Refinance your auto loan. You might be able to lower your car payment by qualifying for a better interest rate or extending the length of your loan. You’ll need a track record of on-time payments spanning six to 12 months.
» Learn how to refinance a car loan
16. Sell your car. Look into selling your car and using the proceeds to pay off all or most of your current car loan. Then, buy a less expensive model — preferably a used car, which won’t lose value as quickly as a new one.
Whether you opt for new or used, aim to keep your total costs — gas, insurance, car payment, registration and repairs — below 20% of your take-home pay, or net income.
» Learn what is net income?
17. Evaluate whether you even need a car. If the answer is no, sell your car and use the proceeds to pay off your existing car loan. What you save in monthly insurance, gas, parking and maintenance costs will probably be more than enough to cover public transportation (more on that below) and the occasional rideshare ride.
Auto insurance
18. Increase your deductible. A higher car insurance deductible will bump up your out-of-pocket costs if you’re in an accident, but will lower your monthly insurance premium.
19. Reduce your coverage. Full coverage may not be necessary for an older car. Consider dropping collision and comprehensive coverage, which cover damage to your vehicle, if your car is worth less than your deductible plus a year’s worth of premiums.
20. Ask about discounts, such as good student, safe driver and multi-driver, or bundle your car insurance with your home or life insurance.
» Learn how to save on car insurance
Food
Switching to store brands at the grocery store and finding discounts may cut your food costs.
Groceries
21. Make a grocery list. You’re less likely to overspend if you have a plan. Plus, you can look for coupons and save money on groceries. (Learn more about how to coupon.)
22. Opt for the store brand. Generic labels and store brands are a surefire way to save money, even if you’re shopping at pricier stores.
23. Become a member. Unlock exclusive sales and coupons by signing up for the store’s loyalty program and downloading its app, if it has one.
Dining out
24. Scope out specials. Take advantage of happy hours or other specials, like burger nights, Taco Tuesday deals and game-day promotions.
25. Skip or split the entree. Order an appetizer instead of an entree to shave $5 to $10 of your dining bill. Or save money by splitting an entree with your friend or date.
Debt
There are many ways to pay off debt, whether you handle it yourself with strategies such as the debt snowball or debt avalanche, or if you use a loan or credit card for debt consolidation.
Student loans
26. Apply for an income-driven repayment plan. Federal loans have several income-based options that cap your monthly payments at 5% to 20% of your discretionary income.
An important note: These income-driven repayment plans, as well as the SAVE repayment plan and student loan forgiveness, may disappear during the Donald Trump presidency. Learn what borrowers can expect in 2025 and beyond.
27. Ask for a deferment or forbearance. These halt your payments for a time. However, interest may still accrue, increasing your overall balance. It’s wise to first apply for an income-driven repayment plan. Private loans don’t come with the same protections, but your lender may work with you to reduce or temporarily suspend your payments.
28. Refinance your student loans. If you qualify for a better interest rate, you can lower your payments by refinancing student loans with a private lender. With this option, you’ll lose any federal protections.
» Learn more about how to lower student loan payments
Credit card debt
29. Ask for a lower interest rate. Your card issuer is more likely to give you a lower interest rate if you have a solid payment history and good credit score.
30. Transfer your balance. Take advantage of a balance transfer offer with an existing card, or open a balance transfer card with a 0% interest rate. Moving your balance to either will allow you to pay it off interest-free for a designated length of time — after that period ends, you’ll face interest on your balance. This move generally requires an excellent credit score.
31. Consolidate your credit card debt. Personal loans often have lower interest rates than credit cards. If you qualify for one, you can consolidate your credit card debt with a personal loan to lower your monthly payments and save on interest charges in the long run.
» Compare the best best balance transfer credit cards
Memberships
Your monthly subscriptions may not feel like a lot, but $7.99 here and $9.99 there can add up quickly. Use these tips to chip away at your membership fees.
Streaming services
32. Limit the number of services to which you subscribe. If there’s a service that provides just a couple shows you enjoy, consider binging them, then canceling the service. Also take advantage of free trials to watch what you want in that time period, without committing to the expense.
Finding a service that can provide multiple benefits can also save you money in the long run. Amazon Prime members, for example, get free streaming on hundreds of movies and shows and free shipping. (If you’re choosing just one, learn the best streaming service for you.)
33. Look into family plans. Popular music streaming services such as Spotify and Apple Music also offer family plans, which allow multiple people to share one account and save big.
» Learn how much does Spotify cost? and how much does Apple Music cost?
Gym memberships
34. Negotiate for a lower monthly membership rate. Come to the conversation armed with competitors' rates and the gym’s own new customer promotions to get the best deal.
35. Cancel your membership and gym-hop. Most gyms and studios will give you a free class or two to test the waters. And many yoga studios hold community classes that are free or by donation. Thousands of free online workouts let you break a sweat without leaving home — and the only cost is dedication.
Magazines and newspapers
36. Cancel any publications you don’t read regularly. You can always resubscribe later when you see a discounted rate. Or, better yet, pick one up at your local library.
37. Downsize print subscriptions. Not willing to give up your daily subscription to The Wall Street Journal or The New York Times? Consider opting for digital-only versions or for Sunday-only print deliveries.
Shopping
Purchases like clothing and household goods can be a significant part of your budget, so finding thrifty alternatives makes sense.
Clothing
38. Shop secondhand. Thrift stores are good for more than donating items. Thrift stores and other stores that allow you to shop secondhand are a great way to help you cut costs, and in a sustainable way. Keep in mind that some thrift stores and consignment shops often have special discount days or allow you to save even more money when you donate.
39. Sell your clothes. You can sell your gently used clothing at brick-and-mortar secondhand stores like Buffalo Exchange and local consignment shops. Or, try a virtual secondhand retail site like thredUP, where you can both sell and shop for items. With thredUP, you receive a bag and shipping label, so you just bag up your items and ship them, and receive a payout for the items that are accepted.
» Learn where to sell clothes
40. Find free or low-cost clothing via social media. Search on Facebook or Nextdoor for “freecycle” or “buy/sell” groups, where members offer items at no charge or less than new. Many communities also have clothing swaps, where participants bring clean, unwanted items to exchange for others’ items. They’re sometimes themed by size or category, such as maternity wear.
Household purchases
41. Save money with savvy online shopping. For instance, browser coupon extensions like Honey and RetailMeNot search the web for the best coupon codes and allow you to apply them to your online shopping cart. And online sites can help you compare prices before buying.
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