If you’re like most people, you realize that you put a budget in place to limit spending and to reach other financial goals of saving money or paying down debt. Of course, like most people after living on a budget for a while, you may find that although it does help you save and get rid of debt, it doesn’t make life a whole lot of fun.
The answer to this dilemma is not to change your budget and reduce your savings, it’s to change your bills to free up more of your money. Use these tips to help get more freedom in your budget.
Lower Your Bills
The easiest way to free up money without taking away from your savings contributions is to lower your “fixed expenses” each month. You may be thinking if they are “fixed” how can I lower them? That is a good question!
Many of the bills you think of as fixed, can actually be reduced quite a bit if you’re careful. For example, your electric bill may be relatively stable from month to month, but by carefully adjusting your heating and cooling, turning off lights, and unplugging unused electronics, you can shave a bit off of that monthly expense.
Also things like monthly subscriptions such as cable, magazines, NetFlix etc. can all be reduced or eliminated thus lowering your monthly expenses not just once but for every future month as well.
Groceries are another place where many people can see some added savings. Between cutting coupons, shopping sale papers, and switching to store brands, you just might reduce your grocery spending enough to afford a dinner out each month.
Lower Your Banking Expenses
Another set of bills that can be lowered, but are often overlooked, are your banking expenses. Lately in an effort to increase profitability banks have been raising the fees they charge for services. But Credit unions like TruPartner Credit Union offer a great way to get inexpensive banking services. Credit unions are usually member owned, which means they generally charge cheaper fees, lower interest rates on loans and are more likely to have free accounts because their allegiance is to the members rather than to shareholders. In the long run, paying lower interest rates and saving those extra charges can make a big difference in your budget.
You can also check out refinancing rates at your local credit union since it’s very possible that if you qualify, you can get an even lower interest rate on your mortgage. This can cut your mortgage amount by a lot and free up even more room in your budget.
Budgets feel restrictive because they’re meant to be. They restrict your spending in order to redirect your income into things that really matter to you. But that doesn’t mean your finances have to take all the fun out of life.
