Home ownership is widely regarded as one of the most reliable ways to build personal wealth — but when you add up all the monthly expenses that come with owning a home, sometimes it doesn’t feel that way! If you want to be able to put more into savings or investments, reducing your monthly expenses can free up flex money. Here are a few ways you could be saving when it comes to your home.
Save on utilities. From water to trash to the internet, those monthly utility bills can stack up quickly. Cut your electricity expenses by installing LED bulbs and a programmable thermostat and save on water by fixing leaky faucets and installing a low-flow showerhead. Don’t be afraid to shop around occasionally for better deals on phone, internet, and cable. Performing an audit of your monthly expenses can show you where you can cut some costs. Even small savings add up across utilities and over time.
Look for discounts. Did you know that some energy companies will give you rebates or discounts if you install a smart thermostat or other more energy-efficient appliances? You also may be able to save money by bundling your auto and home insurance or get discounts for installing deadbolt locks, smoke detectors, or burglar alarms.
Reevaluate your homeowner’s insurance. Some insurance providers offer savings and benefits when you stick with them for the long haul — but in other cases, you can save big by switching to an insurance provider with lower rates or bigger discounts. (Remember to notify us if you do decide to switch carriers.)
Reduce your mortgage payment. For most homeowners, their mortgage payment is their highest monthly expense. If you can reduce that expense, it can free up a big chunk of money. Refinancing may be an option if it reduces your payment or shortens your loan term. Or, if you end up with extra money, making additional payments on top of your monthly ones can help reduce the interest you’re paying. And once you have at least 22% equity in the home, you may be able to cancel PMI, which can yield some significant savings. (Please call us to find out if you have enough equity to have your Mortgage Insurance dropped.)
If you can dig up ways to save just $50 a month, you’re looking at $600 of savings a year — nothing to sneeze at. If you make time to conduct a thorough review of your monthly home expenses right now, you’ll be greeting 2020 with a fatter wallet!
Financing a home purchase, or refinancing for a lower rate or improvements? Please text, email or call us… Have a great day!