As an investment, home ownership has several pros and cons.
One of the pros is appreciation. That means your home’s value will increase over time, so there’s a good chance you’ll make a profit if you decide to sell your house in the future. You’ll also be building equity, as well as enjoying some tax benefits.
As for the cons, well, the biggest one would be the high upfront fees associated with the property’s selling price and various closing costs. This is followed by ongoing home expenses, which include maintenance and repair, utilities, and so on.
That being said, let’s talk about some of the best ways to reduce your home expenses.
1. Evaluate Your Monthly Home Expenses
Any guide on how to lower your home expenses will tell you about the importance of tracking your spending. Without this step, you won’t have a clear picture of where you can make adjustments.
For example, you might think you’re spending too much on food, so you try to save money by buying only cup noodles or other cheap but unhealthy food items. While this might save you a couple of dollars per month, you’ll still be bleeding money if you don’t take into account other items, especially big-ticket ones like mortgage, insurance, debt, etc.
To help you track your monthly home bills, you can use a budgeting app or look for an expense tracker that’s easy for you to use.
2. Refinance Your Mortgage
Even if you can only lower your interest rate by a couple of points, refinancing is worth it for many reasons. First, your mortgage is likely your biggest monthly expense. If you can take advantage of a lower interest rate on your mortgage, you should take it.
Aside from refinancing your mortgage, you should also consider making more payments. If you can pay half every two weeks, that can help cut down on your interest.
3. Save on Utilities
Does it seem like your utility bills keep increasing every month? If yes, you should consider an energy audit, which comes with specific benefits like helping you make informed decisions when it comes to buying energy-efficient appliances.
It can also help you budget for and forecast future home expenses by letting you know which fixtures or appliances have to be repaired or upgraded.
4. DIY Some Home Maintenance Tasks
While you’ll want to steer clear of repairs that involve plumbing or electrical work, there are some tasks you can learn to DIY.
For example, giving your kitchen cabinets a fresh coat of paint is easy enough to do. The same applies to cutting your grass, replacing your AC filter, and so on.
5. Don’t Forget About the Extras
Are you still spending on subscriptions for magazines you don’t read regularly? Does each member of your household have a Netflix or Spotify account?
When was the last time you evaluated your cell phone plan and data usage? All these extras could add up, so try to see where you can make small tweaks that can help add to your savings.
Ready to Maximize Your Savings?
Now that you know some ways to lower your home expenses, are you excited to boost your savings?
The money you save from following these tips can be used for more home improvement projects. If you’re looking to makeover your kitchen, living room, or your home decor, don’t forget to check out our other posts.