20 Ways to Save Money and Stretch Your Household Budget

 

 

These days, it seems like everyone’s looking for ways to cut costs and stretch their income further. Fortunately, there are some simple steps you can take to reduce your household expenses without making radical changes to your standard of living. When combined, these small adjustments can add up to significant savings each month.

 

Here are 20 things you can start doing today to lower your bills, secure better deals, and begin working toward your financial goals.

 

1. Refinance Your Mortgage - For prime borrowers, mortgage rates are at or near historic lows. Depending on your current mortgage rate and the terms you choose, refinancing could save you a sizable amount on your monthly payments. There are fees and closing costs associated with refinancing, so you’ll need to talk to your lender to find out if refinancing is a good option for you.

 

2. Evaluate Your Insurance Policies - If it’s been a while since you priced home or auto insurance, it may be worthwhile to do some comparison shopping. Get quotes from at least three insurers or independent agents. Try bundling your policies to see if there’s a discount. And inquire about raising your deductible, which should lower your premium.¹

 

3. Bundle Cable, Phone, and Internet - You can also save money by bundling your cable, phone, and internet services together. Shop around to see who is willing to give you the best deal. If switching is too much of a hassle, ask your current provider to match or beat their competitor’s offer.

 

4. Better Yet, Cut the Cord on Cable - In many cases, you can save even more if you cancel your cable subscription altogether. An antenna should give you access to the major stations, and many of your favorite shows are probably available on-demand through a less expensive streaming service subscription.

 

5. Revisit Your Wireless Plan - You can often save by switching from a big brand to an independent, low-cost carrier. If that’s not feasible, ask your current provider for a better deal or consider downgrading to a cheaper plan.

 

6. Adjust Your Thermostat - Turning your thermostat up or down a few degrees can have a noticeable impact on your monthly heating and cooling costs. To maximize efficiency, change your filters regularly, and make sure your windows and doors are well insulated.

 

7. Use Less Hot Water - After heating and cooling, hot water accounts for the second largest energy expense in most homes.² To cut back, repair any leaks or dripping faucets, install low-flow fixtures, only run your dishwasher when full, and wash clothes in cold water when possible.

 

8. Lower Overall Water Consumption - To decrease your water usage, take shorter showers, and turn off the sink while you brush your teeth and wash your hands. If you don’t have a low-flow toilet, retrofit your current one with a toilet tank bank or fill cycle diverter. And irrigate your lawn in the morning or evening to minimize evaporation.³

 

9. Conserve Electricity - Save electricity by shutting off your computer at night and installing energy-efficient LED light bulbs. You can minimize standby or “vampire” power drain by utilizing power strips and unplugging idle appliances.⁴

 

10. Purchase a Home Warranty - While there is an upfront cost, a home warranty can provide some protection and peace of mind when it comes to unexpected home repair costs. Most plans provide coverage for major systems (like electrical, plumbing, and HVAC) and appliances (such as your dishwasher, stove, or refrigerator).

 

11. Outsource Less - From lawn care to grocery shopping to minor home repairs, we pay people to do a lot of things our parents and grandparents did themselves. To save money, try cutting back on the frequency of these services or taking some of them on yourself.

 

12. Prepare Your Own Meals - It costs nearly five times more to have a meal delivered than it does to cook it at home.⁵ And home cooking doesn’t just save money; it’s healthier, cuts down on calorie consumption, and can offer a fun activity for families to do together.

 

13. Plan Your Menu in Advance - Meal planning is deciding before you shop what you and your family will eat for breakfast, lunch, and dinner. It can help you lower your overall food bill, eliminate waste, and minimize impulse purchases. When possible, buy produce that is in season, and utilize nutrient-rich but inexpensive protein sources like eggs, beans, ground turkey, and canned tuna.

 

14. Plant a Garden - You can save even more on produce by growing it yourself. If you have space in your yard, start-up costs are relatively minimal. Gardening can be a rewarding and enjoyable (not to mention delicious) hobby for the whole family. And it could save you around $600 per year at the grocery store!⁶

 

15. Review Memberships and Subscriptions - Are you paying for services and subscriptions you no longer need, want, or can utilize? Determine if there are any that you should suspend or cancel.

 

16. Give Homemade Gifts - Who wouldn’t appreciate a scratch birthday cake or tin of cookies? And if you enjoy crafting, Pinterest and Instagram are full of inspiring ideas. Show your recipient how much you care with a homemade gift from the heart.

 

17. Minimize Your Debt Payments - The best way to reduce a debt payment is to pay down the balance. But if that’s not an option right now, try to negotiate a better interest rate. If you have a good credit score, you may be able to qualify for a balance transfer to a 0% or low-interest rate credit card. Keep in mind, the rate may expire after a certain period—so be sure to read the fine print.

 

18. Get a Cash-back Credit Card - If you regularly pay your credit card balance in full, a cash-back credit card can be a good way to earn a little money back each month. However, they often come with high-interest rates and fees if you carry a balance. Commit to only using it for purchases you can afford.

 

19. Ask for Deals and Discounts - It may feel awkward at first but becoming a master haggler can save you a lot of money. Many companies are willing to negotiate under the right circumstances. Always inquire about special promotions or incentives. See if they are able to price match (or beat) their competitors. And if an item is slightly defective or nearing its expiration date, ask for a discount.

 

20. Track Your Household Budget - One of the most effective ways to reduce household expenses is to set a budget—and stick to it. A budget can help you see where your money is going and identify areas where you can cut back. By setting reasonable limits, you’ll be able to reach your financial goals faster.

 

 

Want more help getting a handle on your finances? Use the budget worksheet below to track income and expenses—and start working towards your financial goals today! Please reach out to me for a downloadable version.

 

HOUSEHOLD BUDGET WORKSHEET
	Expected	Actual	Difference
HOUSING
Mortgage/taxes/insurance or Rent
Utilities (electricity, water, gas, trash)
Phone, internet, cable
Home maintenance and repairs
FOOD
Groceries
Restaurants
TRANSPORTATION
Car payment/insurance
Gas, maintenance, repairs
OTHER
Health insurance
Clothing and personal care
Childcare
Entertainment
Gifts and charitable contributions
Savings, retirement, college fund
INCOME
Salary/wages
Tips and other
MONTHLY TOTALS
Total Actual Income
Total Actual Expenses
ADDITIONAL SAVINGS

 

I’M HERE TO HELP

I would love to help you meet your financial goals. Whether you want to refinance your mortgage, save up for a down payment, or simply find lower-cost alternatives for home repairs, maintenance, or utilities, we are happy to provide our insights and referrals. And if you have plans to buy or sell a home this year, we can discuss the steps you should be taking to financially prepare. Contact me today to schedule a free consultation!

 

 

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

 

 

Sources:

 

1.     Insurance Information Institute -
https://www.iii.org/article/twelve-ways-to-lower-your-homeowners-insurance-costs

2.     Department of Energy -
https://www.energy.gov/energysaver/water-heating/reduce-hot-water-use-energy-savings

3.     Money Crashers -
https://www.moneycrashers.com/ways-conserve-water/

4.     Harvard University -
https://green.harvard.edu/tools-resources/poster/top-5-steps-reduce-your-energy-consumption

5.     Forbes -
https://www.forbes.com/sites/priceonomics/2018/07/10/heres-how-much-money-do-you-save-by-cooking-at-home/#2c53b2f35e54

6.     Money -
https://money.com/gardening-grocery-savings/

 

 

Is Your A/C Ready for Summer?

Summer is almost upon us, and that means it’s time to check your A/C system. It’s important to regularly check the system in order to prevent any breakdowns once things start to heat up. Make sure to check your A/C while the Spring temperatures still linger. Below are a few helpful steps for checking your A/C system.

 

 

Getting a head start

This year it is more important than ever to make sure you get a head start on maintaining your A/C. The first step you will want to take is to turn on your A/C to make sure that it is working properly. With the current state of the country, it is important to make sure that your A/C is working before the hot temperatures reach your region.

Power Down

If you notice issues with your A/C system when you turn it on, then there could be a repair need. Before beginning any kind of A/C repair or inspection, be sure it’s powered off in order to prevent damages to any of its many parts. It’s also an important step for ensuring your personal safety, as air conditioner repair can sometimes be a tricky task.

Cleaning the Condenser

Inspect the area around the condenser for any debris that could potentially prevent air from flowing into the system. To help the condenser breathe, make sure there are at least a couple of feet between the condenser and any shrubbery, fencing, or tree branches that are in the area. Use a regular garden hose to then wash both the inside and outside of the unit.

If you suspect small leaks in your A/C system, you can usually fix them from the condenser’s end by using a refrigerant leak repair kit. It simply clips to the condenser’s suction line and sends sealant throughout the system, sealing any small leaks along the way. Be sure to also check the fan belt, which connects the motor and the blower, can weaken or wear down over time and require readjustment, more lubrication of the bearings, or even a total replacement. Different A/C systems require different fan belts, so make sure you find one that’s specific to your system before purchasing. After you repair or replace your fan belt, make sure there is at least half to three quarters of an inch of slack in the line. Fan belts that are too loose or too tight are more likely to break.

Ductwork and Filters

Now it’s time to start following the A/C system indoors. First, you’ll want to search your house for all registers (vents) and make sure that any rugs, carpeting, or furniture does not block them. If you have floor registers, make sure to look inside for any foreign objects; it’s not uncommon for toys or other small household objects to fall through the vents. Next you’ll want to inspect the ductwork running through your attic or basement. Make sure that they are properly insulated and that there are no gaps in the seams. Improper insulation can cause irregular condensation on the cold metal coils and lead to leaks that can seep through your ceiling.

After the ductwork has been properly inspected, go ahead and check your filters for any clogs. It’s recommended that you change filters at least once a month to keep your system running smoothly. Filters that protect against common allergens will tend to clog quicker, so they require more frequent attention.

While checking on your A/C, if you have any problems with your unit you can request service now

See also: Spring is Blooming, Unfortunately so are Your Allergies

Professionals

Consider hiring an air conditioning repair professional to regularly check your A/C system. There are many parts that can go unnoticed by the untrained eye, and a professional can help prevent future problems by providing proper, detailed maintenance.

To ensure that you receive only the best professional help when you have an A/C break down, AHS provides a home warranty plan that uses trusted, local contractors.

Home Sales Decline

This week, the unemployment figures continued to rise and the home sales data reflected the slowdown in economic activity due to the coronavirus. Congress passed a bill to provide another $484 billion in aid for small businesses, hospitals, and virus testing. Daily volatility in mortgage markets remained low, and the change in rates for the week again was small.

Filings for new Jobless Claims dropped from 5.2 million last week to 4.4 million this week, which was close to expectations. Typical readings before the outbreak were around 250,000. The US has lost 26.5 million workers, more than 16% of the labor force, over the past five weeks.

The housing market had been performing very well prior to the outbreak of the pandemic. In February, existing home sales climbed to the highest level in more than a decade. In March, however, sales of existing homes fell 9%. The chief economist of the NAR said to expect "more temporary interruptions" to home sales in the next couple of months.

National median existing-home prices were up 8% from a year ago. Inventory levels remained low in many regions, as the number of homes for sale was at just a 3.4-month supply nationally, well below the 6.0-month supply which is considered a healthy balance between buyers and sellers.

Looking ahead, the coronavirus will remain the main focus. Investors will be watching for news about medical advances, Fed actions, government fiscal stimulus programs, and plans for reopening the economy. Beyond that, the next US Fed meeting will take place on Wednesday and the next European Central Bank meeting on Thursday. Investors will be looking at the assessment of the central banks on the economic impact of the pandemic. First quarter GDP, the broadest measure of economic growth, will be released on Wednesday and ISM Manufacturing on Friday.

After the Pandemic, Then What?

After the Pandemic, Then What?: First, a disclaimer: This is not the column I set out to write.

COVID-19 Stimulus Package: What Aid Is Coming and How to Apply

by Liz Dominguez

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Last month, Congress passed a $2 trillion relief bill, the CARES Act, which will send direct payments to American taxpayers, as well as provide a variety of aid options for businesses and U.S. residents, to reduce the financial strain introduced by the COVID-19 pandemic. 

The CARES Act includes:

• Direct one-time payments of $1,200 per taxpayer (with a threshold of $75,000 per individual before it begins phasing out)
• Increased unemployment benefits with new eligibility for independent contractors and gig workers
• $350 billion in loans to help small businesses struggling from COVID-19-related closures
• Delayed due dates for employer payroll taxes
• A tax credit for retaining employees for up to 50 percent of wages paid during the pandemic crisis; only businesses forced to pause operations or who experienced a 50 percent drop in gross receipts from the previous year are eligible
• A $500 billion pool of taxpayer funds to create loans, loan guarantees or investments to or in businesses, states and municipalities that have been damaged by the crisis
• $17 billion in loans and loan guarantees for “businesses critical to maintaining national security”
• $117 billion into hospitals and veteran healthcare
• Suspension of federal student loan payments until Sept. 30, with no interest accrual

Here’s the breakdown of the most noteworthy provisions, how you can apply for aid and what the stipulations are:

Stimulus Payments

Taxpayers will receive a one-time $1,200 payment, either via mailed check or as a direct deposit if that was the method of reimbursement set up for 2018 or 2019 tax returns. The IRS expects Americans to start receiving electronic payments as soon as April 9, with mailed checks taking more time. Taxpayers do not have to sign up or apply to receive the payment, and will not be asked to verify their information.

For those who have not had direct deposit in the past, the IRS stated “In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.”

Who is eligible? In order to receive the payment, an individual must have a Social Security number, filed taxes in 2018 or 2019 (or, if they don’t earn enough to file, they must receive Social Security payments) and not have been claimed as a dependent on another person’s tax return.

While the maximum payment is $1,200 for single filers, not all taxpayers will receive this amount. Filers with an adjusted gross income below $75,000 will receive the full credit, while payments will begin to phase out at a rate of $5 for each $100 over the thresholds of $112,500 for single filers and $150,000 for married couples filing jointly. 

Taxpayers will receive an additional $500 per child under 16 years of age. Those who have had children in 2020 will likely receive $500 credits next year when they file their 2020 taxes, as the current child tax credits are based on 2019 taxes (or 2018 taxes for those who have not yet filed). 

Unemployment Benefits

Under the stimulus package, unemployment benefits are available to freelancers and independent contractors, as well as other individuals, who cannot work due to COVID-19. The bill provides an additional $600 per week in benefits for four months, on top of the regular state unemployment checks. The duration of unemployment benefits has also been extended by 13 weeks from the 26 weeks normally offered.

Because each state determines eligibility when it comes to unemployment benefits, who gets approved or rejected may be subject to location and individual cases. 

According to the Wall Street Journal, these unemployment provisions may be available starting April 13. States are awaiting the funding, along with specific guidance related to the CARES Act unemployment provisions. Depending on their access to technology and funds, states could begin releasing the additional $600 weekly payments within a week or two. However, for some states, it could be two to four weeks or longer until they receive access. 

The additional payments will, however, be retroactive to April 5. For Americans who are unable to receive these benefits as states await instructions, they may receive a lump sum payment once the benefits are available. 

Those interested in filing for unemployment benefits must visit their state’s Department of Labor website. The National Association of REALTORS® also released an FAQ on unemployment assistance as outlined in the relief package.  

Small Business Loans

Under the new bill, the federal government is providing $350 billion in 1-percent interest loans for small businesses with fewer than 500 employees who are struggling due to COVID-19 through the Paycheck Protection Program (PPP). There is an incentive under the PPP, which allows borrowers to have the loan and accrued interest completely forgiven, tax-free, if the funds go toward payroll costs, mortgage payments, rent and insurance, and the borrower doesn’t fire employees or cut payroll in an eight-week period, starting when the loan is taken out. 

However, there have been obstacles. Some banks will not lend to individuals who don’t have an existing relationship with them, and some financial institutions have not yet begun processing applications, awaiting guidance from the Small Business Administration (SBA). 

Fountainhead, one of the 14 “non-banks” in the U.S. that is licensed to lend PPP loans, released the following statement:

“For the past two weeks, we have been working tirelessly to prepare for the SBA’s new Paycheck Protection Program (PPP). Despite widespread publicity about the government-sponsored, private-sector program being ready to accept applications by Friday, April 3, SBA has NOT provided adequate guidance to us on how the program will be effectively administered,” says Chris Hurn, CEO and founder of Fountainhead. “Joining dozens of the largest financial institutions across the country, including JP Morgan Chase, we will NOT begin submitting to SBA on April 3 as we had previously hoped. However, please understand we have every intention of participating in and championing this program.”

Other banks, such as Wells Fargo, have been flooded with applications and are no longer accepting new applications. 

The Federal Reserve announced it would be purchasing emergency loans issued by the SBA under the PPP in order to free up cash to issue new loans under the program and through conventional lines of credit, according to The Hill.

Small businesses can borrow 250 percent of their average monthly payroll expenses, capping individual salaries at $100,000 per year, with the total loan amount capping at $10 million. The loans are meant to help cover eight weeks of payroll expenses, and can be applied any time until June 30. Business owners interested in applying for a PPP loan can contact local banks, credit unions and other lenders.

Student Loan Suspension

Also included in the bill, the U.S. government is automatically suspending student loan payments and waiving interest for six months. The waiver only applies to federal loans, such as Direct federal loans and PLUS loans. Borrowers will have to check with their lenders, as some federal loans are excluded if they are guaranteed but not held by the government. Private student loans are excluded; however, some banks are offering debt relief options. 

Many loan servicers are playing catch up; therefore, some borrowers may not yet see the change on their account but may request refunds as the waiver is retroactive from March 13. Auto-debits are being suspended, but borrowers can choose to continue making payments if they are able to afford doing so. 

More Aid to Come?

While not yet formally proposed, members of Congress have expressed the need for another bill to expand the provisions passed in the CARES Act. Additionally, on Twitter, President Trump announced he would ask Congress for additional PPP funding if the $349 billion allotted in the current bill is depleted. 

As the coronavirus and its impact on the industry unfold, RISMedia is providing resources and updates. Get the latest.

Liz Dominguez is RISMedia’s senior editor. Email her your real estate news ideas at ldominguez@rismedia.com. 

A New Way To Serve The Ones Who Serve(d) Us! “Salute Our Soldiers” Military Loan Program Effective today, we are excited to announce the “Salute our Soldiers” Military Loan Program powered by Florida Housing Finance Corporation is now available. Although Florida Housing has offered a first mortgage program for our military personnel and veterans (the Military Heroes), the Salute our Soldiers Loan Program provides a lower first mortgage rate and additional special benefits to those who currently serve and those who have served. It also offers a variety of down payment and closing cost assistance products. The Salute our Soldiers is also offered through the TBA (The Bond Alternative) Program, which means it offers our military servicemen and women greater opportunities to achieve homeownership. With the TBA Program, the income and the first-time home buyer status of the borrower(s) only is considered. This Program does not consider household income or the first-time buyer status of the spouse, if the spouse is not the loan. Veterans are exempt from the first- time buyer status when using this program (active duty must be a first-time buyer). Homebuyer education is also required. The Salute our Soldiers Program also offers our veterans and eligible military personnel a greater opportunity to utilize their VA benefit. It also offers greater opportunity for our veterans to utilize their VA-guaranteed loan benefit and the below DOWN PAYMENT AND CLOSING COST ASSISTANCE PROGRAMS: FL Assist – up to $7,500 in down payment and closing cost assistance offered as a 0%, non-amortizing, 30-year, second mortgage.* FL Homeownership Loan Program (HLP) – up to $10,000 in down payment and closing cost assistance offered as a 3%, amortizing, 15-year, second mortgage with a monthly payment.* Salute our Soldiers (3%, 4% or 5%) - 3%, 4% or 5% of the sales price in down payment and closing cost assistance offered as a 0%, non-amortizing, 5-year, forgivable second mortgage which is forgiven at the rate of 20% a year over its 5-year term.* Florida Housing offers a government first mortgage loan program which offers FHA, USDA or a VA financing option as well as two conventional loan financing options to be paired with our down payment and closing cost assistance programs listed above. Below are the first mortgage programs: The Florida First (FL First) (GOVT) for TBA offers eligible borrowers a 30-year, fixed-rate mortgage. Household income restrictions apply. The HFA Preferred for TBA (CONV) offers eligible borrowers a 30-year, fixed-rate mortgage. Income restrictions apply. Reduced PMI is available with income restrictions. The FL HFA Advantage for TBA (CONV) offers eligible borrowers a 30-year, fixed-rate mortgage. Income restrictions apply. Reduced PMI is available with income restrictions *If the borrower sells, refinances, pays off the first mortgage, transfers the deed, or no longer occupies the property as their primary residence, payment will be due and payable, in full. Any unpaid principal balance will be forgiven for those active duty military personnel which are required to relocate and sell their property as a result.

This information is intended for use by real estate professionals and is not to be distributed to consumers. Contact your Watson Mortgage Corp. Loan Originator for additional program details.

For more details contact Carmen@CarmenAndGeorge.com 386-246-9239