Going cold turkey on your Diet Coke habit and giving up spin classes will only get you so far. If you want to save a lot of money, think bigger.
How big are we talking?
Your housing costs. They probably take up more room in your budget than anything else.
This is going to hurt, isn’t it...
Maybe not too bad. Start slow by trying to lower your utility bills. Think: using advanced power strips, only running the dishwasher when it’s full, and washing most of your clothes in cold water.
Easy enough. What else?
If you’re an A+ renter who pays on time, takes care of your place, and doesn’t blast Cardi B at 2 a.m., see if your landlord will give you a break. Pro tip: Offer an incentive to sweeten the deal. Like agreeing to sign a two-year lease or prepaying a month or two.
Related: How to Get Your Bank Account Ready to Buy a Home
If you’re an owner, refinancing could save you money. Getting a lower interest rate means you’ll pay less every month. Psst...you might get a special intro rate on an adjustable-rate loan, but the price can go up over time. Fixed-rate loans hold steady.
What if my bank account's still sad?
Might be time to go big by going home...to a smaller place. Yes, we mean downsizing. Kinda painful, but it could save you a lot. On top of a lower rent or mortgage payment, less square footage could mean you’ll spend less on utilities and upkeep.
One more option: find a roommate (besides your dog) to split costs. If you’re a homeowner, that could mean renting out unused space. Like a spare bedroom or finished basement.
Making small changes to your spending habits can add up to a lot of savings over time. But targeting your biggest expenses, like housing, can potentially save you a lot...all at once. Yes, please.