If you’ve already completed the initial wave of cost reduction measures in your household, like cancelling the cable, reducing the number of times you dine out or cancelling under-utilised club membership, don’t be satisfied with those obvious money saving strategies. Reduce your monthly expenses by trying these alternative approaches to reducing your monthly bill.
Refinance Your Home
You can start with one of your significant expenses: the mortgage. Review your current interest rate, monthly amortisation value and remaining balance. You may have negotiated your loan during a time of inflated prices and may find cost savings by remortgaging your property. Check again with several banks on the prevailing rates and inquire about requirements for refinancing. If you still have a considerable balance or more years left in the term, consider remortgaging with another financial institution for a favourable rate. Don’t forget to prepare conveyancing comparisons from different solicitors and make sure that the costs savings achieved are more than the conveyance and pre-termination fees.
Transfer Your Balance or Request a Lower Rate
If you currently have credit card balances, you may be able to lower the monthly payments by transferring the balance to another credit card and fixing the rate and term instead of just revolving on the current credit card. If you only have one credit card to make monthly payments on time, you can call the bank to ask for a reduced rate.
Bundle Home and Auto Insurance
Now would be a good time to review your home and auto insurance coverages. Shop around for other insurers and their current rates and consider moving your coverages with another insurer. You can even negotiate a reduced premium if you bundle your home and auto insurance coverages.
After your first cost-reduction efforts eliminate the expenses in the more obvious places, try these out-of-the-box approaches to putting more money back into your pocket.