Lowering your bills: 6 tips to save money monthly

Housing, utilities, credit cards, streaming services—the list of bills is often longer and costlier than anyone likes. But guess what? In many cases, you can negotiate or otherwise reduce your “fixed” expenses—which can make sticking to your budget a far easier task, especially if you’ve already trimmed your spending elsewhere. 

Here are six tips to help you save money.

How to lower bills at home: Negotiate your bill payments

Most people never consider asking a big corporation—like an internet provider or utility company—for a lower monthly charge. But these providers can bend the rules on their rates more than you think. 

Calling a phone, cable, or other utility company to say, “I’m interested in lowering my bills,” can be fruitful. For example, you may be able to negotiate with companies to remove a recent late fee or reduce your monthly rate.

Consider fixed pricing plans for utilities

To manage your utility bills, consider switching your electricity, gas, or water bill to a fixed-price plan, sometimes called “budget billing.” You’ll incur the same charge each month—as determined by your utility company based on your past usage—which can remove surprises from your monthly budget. 

Your utility usage is very likely to change over time—maybe a mild summer meant you used your air conditioner less often or a brutal winter led to spiking heat costs. As a result, your monthly amount will likely change as well when a new year begins, but utility companies will typically notify you in advance of any change.  

If energy costs decrease overall, you may pay more annually on a fixed-price plan than on a traditional plan, where amounts will vary month over month.  But depending on your budgeting needs, it might be worth it in exchange for predictability.  

Downgrade, rotate, or bundle streaming services

If you’ve amassed several streaming services—and who hasn’t?—you may be paying a premium to watch only a handful of shows. If so, here are a few strategies to consider when trying to lower your bills: 

• Drop any services that get significantly less play than others. 
• Try rotating your streaming options. For example, keep two services for one month, bingeing all their best stuff, then cancel those and switch to another service the following month. 
• Sign up with a bundling service to mix and match the options you want without paying for those you don’t.

Carefully consider balance transfers, debt consolidation, or refinancing

Switch debt from a high interest rate to a lower, or even nonexistent, one? Yes, please! But sometimes, the costs can outweigh the benefits. Often, hefty balance transfer fees can make switching to a card with a lower rate not worth the trouble. Debt consolidation loans may come with high origination fees and balance transfer fees. And refinancing a mortgage can bring closing costs and restart the clock on paying off your home. The bottom line? Weigh all the pros and cons first.

Spend smartly on everyday items

Sometimes, spending money in the short term can help you save money in the long term. Here’s how.

Buy in bulk

Loading up on household staples and nonperishable foods is one way to save money on your grocery bills. Think: paper towels, toilet paper, coffee, pasta, and trash bags.

Choose quality over quantity

Comparing how much something costs versus how long it lasts can help you avoid regularly replacing inferior products.

DIY

Paying for at-home exercise equipment or a weekly meal kit might seem like a big hit to your budget, but these solutions could cost less over time than a monthly gym membership or frequent takeout orders.

Waste less, spend less

Reducing the waste you create—from food to energy—is good for the environment and your wallet. 

When considering how to lower your bills, think about:

• Reheating leftovers and planning your meals each week to avoid impulsively splurging on food 
• Buying secondhand items or joining a group on social media where you can find free used products 
• Unplugging appliances like your coffeemaker or laptop when they’re not in use to save on electricity

Read our guide to a zero-waste lifestyle to learn more.

With a little effort and strategy, you can learn how to manage bills. To help earn cash back¹ from your monthly purchases, make sure you’re using a checking account that offers this perk. These techniques can make it even easier to meet financial goals and build your savings.

Ready to start making money management easier? Click here to learn more about the Discover^® Cashback Debit account, which offers cash back rewards and no fees. 

¹ Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms.

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