Life is expensive. The good news is that with a bit of forethought, planning and creativity, it is possible to reduce everyday expenses. In this article, I’ll review 5 surprising ways to cut household costs. Additionally, I’ll provide you with 10 bonus ways to reduce expenses. These frugal living tips have saved me thousands of dollars over the course of five years.
Read on to find out about the 5 surprising ways to cut household costs.
Why Cut Household Costs?
Learning how to cut household expenses is one of the easiest methods to save money. While you can’t control the price of cleaning supplies, groceries, or electricity bills, you can get creative with ways to reduce consumption.
Reducing your household costs is also a fantastic way to:
- Increase your savings rate so you can enjoy other things in your life such as a night out to the movies or dinner
- Set aside more money to put towards long-term goals such as retirement or continuing education
- Feel good about living on less without sacrificing the quality of your life
5 Surprising Ways to Cut Household Costs
1. Make Homemade Cleaning Products
Making your own homemade cleaning products is cheaper and better for the environment. I personally make homemade cleaning solutions by simply using water, soap, and vinegar to clean my floors and counters. I’ve saved an average of $100 per year just by doing this!
2. Reevaluate Your Subscription Services
Subscription services are a convenient way to access news and entertainment options. However, they’re also a source of unnecessary spending.
Grab your credit card statement from the last month. Find a highlighter or pen and circle all subscriptions you paid for over the past month. Some examples include your TV and movie streaming subscription, music streaming, and even meal kit delivery services. Next, think about whether or not you really need all those subscriptions.
After cutting out Netflix and my other music streaming subscriptions, I’ve saved an average of $30 per month. While not a life-changing amount, if you combine this savings strategy with the others on the list, you’ll have a major impact on your savings rate!
3. Install a Metal Roof
Metal roofs are incredibly energy efficient as they reflect heat away from your home and provide excellent ventilation as hot air escapes. A metal roof can save a homeowner up to 40% in energy costs. Metal roofing is the second most popular option for roofs in America. Choose from several different types including aluminium and steel.
Metal roofs are 2 or 3 times more expensive than conventional roofs but last 2 to 3 times longer. If you have the cash, strongly consider investing in a metal roof to decrease long-term energy costs.
4. Get Rid of Your Home Phone
Do you still have a home phone? Chances are you don’t need it. When you have a cell phone, you’ll already have a way for people to access you via telephone. Even if you’re getting a good deal on a bundle (i.e. internet, home phone, and TV), do your research to find any cheaper alternatives.
5. Invest in a Deep Freezer
Last on my list of 5 surprising ways to cut household costs: investing in a deep freezer. Got enough space in your apartment or home and the funds to invest in a freezer and buy groceries in bulk? Investing in a deep freezer will save you hundreds of dollars per year. More space means being able to buy items in bulk. Larger quantities of frozen foods and bread are generally cheaper. Just be sure to check your deep freezer regularly and use items up before they get freezer-burnt!
According to Six Figures Under, running a deep freezer will run you around $5-10 USD per month extra on your electricity bill and deep freezers cost between $150-250. If you save an average of $20 per month on your grocery bill by buying in bulk, the financial benefits of having a deep freezer will be realized about a year in. Therefore, it’s worth the investment!
10 Bonus Ways to Cut Household Costs
Want to know how to reduce expenses in daily life after you’ve mastered the five ways above? You’re in luck! Below are 10 bonus ways I’ve personally saved hundreds of dollars per year on my household costs.
1. Turn Down the Temperature on Your Hot Water System
Turn down the temperature on your hot water system and save on your electricity bill! According to HomeWorks Energy, your hot water costs make up approximately 20% of your total bill. Turn down your hot water heater to about 120 Fahrenheit from the typical factory setting of 140 Fahrenheit. Be sure not to turn it down any lower so you don’t risk the chance of bacteria growing.
2. Use Sun Protection
We all know that long-term exposure to sunlight ages you. The exact same is true for personal items! Use fabric and furniture protection spray on your furniture and you’ll increase their longevity. Additionally, flip and rotate pillows regularly exposed to sun so you increase the longevity of your upholstery.
3. Increase Your Home Insurance Excess
A higher home insurance excess, the amount you need to pay to receive other coverage, tells your insurer you’re less likely to make a claim on smaller items. Many home insurance providers let you choose from a variety of policies with varying amounts and monthly premiums. Generally, a larger home insurance excess means a smaller monthly payment.
Check with your home insurance provider regarding how much you can increase your excess payment by. Consider how much risk you’re willing to take on versus the potential savings.
4. Choose Energy-Efficient Appliances
According to East West Electric, around 30% of your monthly electricity bill is from appliances such as air conditioners, dishwashers, water heaters, washing machines, and dryers. When you choose energy-efficient appliances, you can save between 5 and 30% on your monthly electricity bill.
When looking for energy-efficient appliances, search for the Energy Star® label, a government-approved label indicating an energy-efficient appliance. Additionally, read the appliance handbook to find out the size of the appliance, estimated monthly electricity consumption, and estimated costs per year.
Shop around and compare 3-5 different models of the same appliance. Additionally, check with your local government regarding any tax rebates you may qualify for. For more information on selecting energy-efficient appliances, refer to this handy guide by Inspire Clean Energy.
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5. Clean Your Air Conditioner
Cleaning your air conditioner means reduced dust and debris and your air conditioning working more efficiently. Units clogged up with dust and dirt take more energy to run and therefore cause increased energy costs. Additionally, when you don’t clean your AC regularly, you reduce the risk of it becoming damaged and needing to replace it.
Refer to this handy guide by Hitachi Air Conditioning on cleaning your machine.
6. Do Clothing Swaps Instead of Buying New Goods
Instead of going out to a secondhand or retail store to purchase clothing, get clothes for free by arranging a clothing swap! Organize an event with family members or friends at your home. Ask everyone to bring 5 or more items they are happy to part with. A clothing swap is also a great opportunity to reconnect with loved ones over food, drinks and games. Turn it into a whole event!
A clothing swap is a fantastic way to kickstart stocking a capsule wardrobe, a collection of high-quality clothing, shoes and accessories that go with many different outfit combinations. For more information on how to stock a minimalist capsule closet, check out my guide here on how to get started.
7. DIY Home Repairs and Maintenance
While there are some home repairs you should outsource, strongly consider if there are any you can do yourself. With a bit of practice, repairs such as sewing, painting outdoors and reupholstering furniture can be easily done! I’ve saved nearly $500 on furniture by sanding and re-painting old cabinets and chairs from loved ones. Rather than going to a thrift store (which is another great frugal option), I’ve saved even more money by reviving old pieces.
Another fantastic benefit to doing your own DIY repairs and maintenance is the lifelong skills you’ll pick up. Use these skills to help other people – and maybe even start a sewing or furniture repair side hustle too!
Just be sure not to be too frugal and step into cheap territory. Cutting down expenses by doing repairs yourself is great for many types of simple tasks. However, some repairs and maintenance jobs are best left to the experts. For example, do you want to electrocute yourself when trying to fix a wiring issue at home or spend 10+ hours painting your bedroom only to find that your paint job is sloppy? Not me! Hire a professional to do these types of specialized tasks.
8. Meal Planning and Batch Cooking
Meal planning is a crucial aspect of cutting household costs. When you plan what your family is going to eat ahead of time, you’ll reduce the temptation to throw grocery items in your cart that you don’t need. Additionally, you’ll be able to batch-cook meals and buy in bulk, saving both time and money.
I save roughly $100 a month simply by meal planning and batch cooking. If you’re a family of four or five, multiply the potential savings by the number of people in your household – huge savings!
When creating a meal plan, try choosing 3-5 core fruits, vegetables, proteins and starches you can use in multiple dishes. You’ll cut down on prep time and will be able to buy packages in bulk which are generally cheaper than smaller packages and cans. For more tips on smart grocery shopping and frugal cooking, check out this epic guide I’ve written.
9. Consignment and Thrift Shopping
Another one of my favorite tips on how to reduce expenses at home: opt for thrift stores and consignment shops over retail. Before you buy something, check to see if you can find it at your local secondhand store. Some items I’ve purchased at thrift stores that are 50% cheaper or more than retail include:
- Cutlery
- Plates
- Books
- Clothing
- Shoes
- Stationery (you’d be surprised at how many brand-new notebooks and stickers are donated to thrift stores!)
10. Transportation Cost Reduction
Consider how you can reduce your transportation costs. If you have two cars for the whole family, consider going down to one car. Carpool either with family members or a colleague. If you are currently working at a job that’s in person or even hybrid (a mixture of in the office and remotely), consider getting an 100% work-from-home job.
- Strategies for reducing transportation costs, such as carpooling, using public transportation, and biking or walking
- Tips for optimizing fuel efficiency and maintaining vehicles to save on gas and maintenance expenses
- Estimated savings from implementing transportation cost reduction strategies
Cutting Costs Too Far: Avoiding Being Cheap
Saving money and living frugally is important – after all, that is the main purpose of my blog and this article! However, it’s important to strike a balance between being cheap vs. frugal.
What is the Difference Between Frugal and Cheap?
Simply put, a frugal person cares about the long-term value of products and services. He or she isn’t afraid to spend a little bit more money on a better haircut or cell phone that looks better and lasts longer. Frugal people are smart with the resources they’ve been given. They understand that the cheapest item isn’t always the best. For example, they know that a cheaper car will wear out quicker than a more expensive one. They’ll evaluate the lifetime value of cars and will calculate the estimated cost in the long run. If a more expensive car costs $40,000 and will run for twice as long as a cheaper car that costs $25,000, they’ll be happy to pay more upfront (provided they can afford it!).
On the other hand, cheap people cut expenses to the bone as they only think about the cost of items. Their main concern is saving money – and as much of it as possible. Cheap people may spend $2,000 on airline tickets and accommodation but skip out on travel insurance because they deem it a wasted cost. While travel insurance may seem like a waste of money, it can save you thousands of dollars on hospital bills in the extremely rare case you are sick. Other examples of cheapness and excessive frugality include:
- Consuming expired products even if they make you sick
- Spending too much time comparing the prices of products at multiple stores only to save a few dollars – while it’s important to compare prices, taking it too far is being cheap
- Tipping a low amount or refusing to tip at all in countries where tipping is commonplace and expected
- Buying the lowest-priced clothing item despite its low quality
A Final Word on 5 Surprising Ways to Cut Household Costs
There you have it – 5 surprising ways to cut household costs and 12 other fantastic ways to reduce expenses. Learning how to reduce expenses and save money will help you financially, both now and in the future!
If you don’t know where to begin, start with 2 or 3 cost-cutting strategies. Don’t be afraid to experiment and have fun with saving money. Remember to find a balance between being frugal and being cheap!
Additional Resources
- Frugal Meal Planning Handbook by Frugal Fun Finance
- Tips on Being Frugal and Thrifty by Frugal Fun Finance
- Extreme Frugal Living Tricks and Tips by Frugal Fun Finance
- How to Reduce Money on Household Bills article by Moneyhelper
- A Beginner’s Guide to DIY Repairs & Home Improvements by The Good Trade
- 101 Ways to Lower Your Living Expenses by Forbes
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Janita is a frugal living expert and owner of Frugal Fun Finance. With over five years of personal experience finding and trying out the best ways to make and save more money, she's eager to share her knowledge. Janita's strategies have helped her save thousands of dollars for funding investments and traveling to over 20 countries.
Janita completed training in personal finance at The University of Western Ontario and McGill University, two prestigious Canadian universities. Her expertise has been shared on GoBankingRates, Yahoo Finance, and NASDAQ.com.
