Setting up automatic payments is a great way to avoid late fees and ensure your bills are paid on time. If you already use autopay, do you take a look at your bill every month to see how much you're being charged for utilities and other services?
Gaining a better understanding of your bills and reviewing your statements on a regular basis helps you make sure you're not being charged more than you should be. Plus, it helps you see where you can make changes and lower your bills
Read on for a few ideas on how to reduce costs around the house and how to build a budget (if you don't already have one).
Cutting Costs
- Need Consider refinancing your mortgage at a lower interest rate. By doing this you may be able to bring down your monthly payment, pay off your mortgage faster or pull money out for a remodeling project. Learn more about refinancing with WaFd Bank.
- Comparison shop every year before your policies automatically renew (homeowners insurance, renters insurance or auto insurance, to name a few). Look around to make sure you're still getting the best deal.
- You can also reduce water usage—and how much you pay—by installing more efficient products, like faucet aerators. Check out this article on other water-saving tips.
- Keep blinds or curtains closed when it's hot outside or when there's direct sunshine in the window. Blocking the sunlight into your house will keep things cooler inside, reducing the need to power fans and/or air conditioning.
- Ensure your home is properly weatherproofed. Keep your home comfortable and your electric bill low by ensuring there are no cracks or holes, especially around doors and windows. Use caulk on any areas where air may pass through. This way, you won't be paying to heat or cool the yard!
- Consider lowering your water heater's temperature to 120 degrees. This can save between 6 to 10 percent each year in hot water heating costs.
- Cut back on paper waste. Try to use more cloth napkins and towels that you can wash rather than paper towels and paper napkins. This will save you money and reduce one-time use waste at the same time.
Building Your Budget
If you haven't created a personal budget yet, it's never too late. Here are a few tips on getting started:
- The first step in your savings journey is to get a better understanding of your earnings and your expenses. Start by making a list of your monthly bills and spending, but don't worry about being exact. Break them into different categories so you can see where your money goes and where you could make cuts if you need to. This can be entertainment, utilities, groceries, etc
- Find a budgeting app or create a worksheet so you can clearly see how much money you usually bring in and a list of your expenses. Your bank's app might offer a tool already—WaFd Bank offers a tool right inside the app where you can manage a budget and track your spending using your transaction history.
Need Help Managing Your Money?
We're here to help. Visit wafdbank.com to open an account or call us at 800-324-9375 to learn more. Interested in opening a savings account? WaFd Bank's savings account options require just $25 initial deposit (only $10 if under age 18) and feature low minimum monthly balances.