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When the first of the month rolls around, you might be frustrated to see, yet again, how much you spend on rent, utilities, and other bills. While life can throw unexpected costs your way, there are some steps you can take to tighten your funds.
We recommend using apps like Rocket Money to cancel long-forgotten subscriptions and comparing rates to lower your car insurance. If you want to learn how to lower your bills, look no further. Here are a few ideas to get you started.
Featured partner offer
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Rocket Money Benefits
- Helps to find and cancel subscriptions
- Slash your monthly phone, cable, and internet bills
- Save an average of up to $720 a year
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How to reduce your rent
1. Find a roommate: If you live in a two-bedroom apartment, a roommate can help cut your living expenses in half.
2. Sign up for a longer lease: If you're planning to move to a new place, many landlords will offer slightly lower rent in exchange for a longer lease (typically two-year leases). If you're planning on renewing your lease and you've been a good tenant, try talking to your landlord to see if they're open to negotiating your rent.
How to reduce your utility bills
Utilities are a necessary part of modern living. They offer the convenience of heated air during cold winter months and even leisurely entertainment on a Sunday evening (thanks, Netflix). Despite their necessity, however, there are ways to reduce these everyday household costs.
Water bill
- Use low-flow fixtures: High-flow fixtures can lead to more wasted water in the shower and at the kitchen sink. According to Energy.gov, switching to low-flow fixtures can help you save 25% to 60% on water costs. If you're renting, just make sure to ask your landlord for permission before changing your fixtures, and remember to switch them back before moving out.
- Use a dishwasher: Instead of spending the painstaking time and money to hand-wash your dishes, use a dishwasher when you can. Dishwashers use less energy and water, especially if you opt for an energy-efficient machine and always run it with a full load of dishes.
- Fix leaks: Energy.gov states that every drip per second from a leaky faucet results in 1,661 gallons of water and $35 wasted each year. Although the cost of a leaky faucet may not seem like much, you're letting money slip down the drain.
Electric bill
- Install energy-saving light bulbs: Replace expensive, energy-wasting incandescent light bulbs with LED or compact fluorescent bulbs. By simply replacing up to five of your home's most used bulbs, you can lower your electricity bill by $45 each year.
- Program your thermostat: Keeping your thermostat programmed to turn off the air conditioning or heat while you're away from home can help you lower your bills. Newer thermostats, like Nest, learn your temperature preferences as you use them and can automatically lower the temperature when they sense you're away from home. According to Nest, this could mean up to $145 in energy savings per year.
- Switch to clean energy and save: A service called Arcadia Power will match you up with clean energy providers who offer lower rates than you currently pay for your utilities. Your home can be powered by solar or wind and you'll pay less each month. That's a win-win!
Gas
- Use a gas app: Find the most affordable gas station in your immediate area by using free apps, like GasBuddy.
- Sign up for gas rewards programs: Major gas companies, like Exxon Mobil, let you earn rewards for gas and in-store purchases that can be redeemed for savings at the pump.
Cable and internet
- Bundle cable and internet: Get more discounts on cable TV and internet when you bundle these services through the same provider.
- Pick one streaming service: Do you prefer streaming your entertainment over cable? If so, stick with one streaming service where you get most of your entertainment. If you only watch Hulu for one show, for example, it might be worth cutting from your monthly bills.
- Use a cost-cutting app: The right cost-cutting app can negotiate your internet and phone bills down for you and save you the hassle of sitting on hold for hours. One cost-cutting app we like is called Rocket Money. With Rocket Money you only pay if they find savings for you. The savings can be huge - Rocket Money customers save up to $720/year.
Rocket Money Benefits
- Helps to find and cancel subscriptions
- Slash your monthly phone, cable, and internet bills
- Save an average of up to $720 a year
Cell phone
- Know what you really need from a cell phone plan: Check your cell phone usage to see where you're incurring overage charges. If you routinely find you're paying data overage fees, for example, it may be time to find a new plan or provider that offers a competitive data package.
- Hold off on upgrading your smartphone: Your carrier may offer to have you finance an upgraded device and make monthly payments toward a new cell phone. This amount is then tacked on to your regular cell phone bill. Hold off on the upgrade until you've saved enough money to afford the purchase outright.
How to reduce your auto insurance premiums
- Compare auto insurance quotes and save up to $610: Provide Insurance lets you compare car insurance quotes at insurance carriers and regional agencies to help you save on your premiums. It can save drivers up to $610 per year compared to their current insurance premiums.
How to reduce your interest payments
- Negotiate credit card rates: You may have opened a credit card when your credit score was lower or you were new to holding credit. If you've demonstrated good borrowing habits and raised your credit score since, reach out to your card issuer to negotiate a reduced interest rate.
- Transfer balances to a 0% APR card: Those with strong credit may qualify for a promotional 0% APR (annual percentage rate) credit card. These promotions allow you to carry a balance month over month for a limited time without incurring interest charges on the account. Before taking this step, make sure to calculate the cost of possible transfer fees that might eat into your savings. To see some options, check out our list of the best 0% intro APR credit cards.
- Debt consolidation: Similar to transferring a balance to a zero-interest credit card, debt consolidation may offer reduced interest payments. Keep in mind, however, that lower interest rates on debt consolidation loans are typically reserved for those with strong credit. Using this approach responsibly is important so it doesn't inadvertently damage your credit. For example, read all the fine print and note any consolidation fees or promotional rates that may end up increasing the cost of the consolidation loan overall.
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Freedom Debt Relief Benefits
- Recommended Minimum debt: $15,000
- Has resolved over $17 billion in debt
- Affordable program with one low monthly deposit
- No upfront costs or hidden fees
- May resolve unsecured debt in as little as 24-48 months1 <p>Estimates are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms. Not all clients are able to complete their program for various reasons, including their ability to save sufficient funds. Freedom Debt Relief does not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. They do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Their service is not available in all states, including New Jersey, and fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements they obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.</p>
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How to reduce your grocery bills
- Create meal plans: Avoid succumbing to convenient take-out dinners and overspending at the grocery store by planning your meals in advance. Developing a weekly meal plan not only curbs extra costs at the drive-through, but also keeps you laser-focused when pulling ingredients from supermarket shelves.
- Track grocery sales: Don't throw away your local grocer's mailers just yet. Pay attention to the days of the week when items go on sale and schedule your trip to the store to capitalize on these deal days. Apps like Upside partner with grocery stores in your area so you can easily find deals near you.
- Clip coupons: Cutting coupons is a well-known way to lower your monthly bills. Aside from traditional coupons in your Sunday mail, you can use coupon apps like Ibotta to earn cash back on your grocery purchases or use retail apps like the Target app that let you find digital coupons to use at checkout.
- Buy generic: It's no secret that generic groceries are more affordable than brand-name goods. If you're looking to lower your food bills quickly, reaching for no-name products can yield instant savings.
- Eat less meat: According to the Bureau of Labor Statistics, the average cost of lean ground beef in March 2025 was $7.48 per pound. To save money, declare one or two days in the week as meatless days, instead opting for more affordable sources of protein like beans, lentils, or tofu.
- Avoid pre-cut or pre-washed foods: In the name of convenience, it can make sense to splurge on pre-washed or pre-cut fruits and vegetables. But oftentimes these options cost more than buying whole, unwashed produce. If you have the option to choose one over the other, consider spending a little time prepping produce as a way to cut costs.
- Turn a photo of your grocery receipt into an Amazon gift card: Imagine being able to earn free gift cards simply by snapping pics of your grocery receipts. With Fetch Rewards, you can take a photo of your grocery receipt after you shop, submit it through the app, and get points that can be used for gift cards. Points can be redeemed for e-gift cards from Target, Amazon, and hundreds of other stores.
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Upside Benefits
- Download this cash back app for free and you could earn a ton
- Earn up to 25 cents cash back per gallon on gas
- Earn up to $10 on every grocery run and restaurant meal
- Real money you can cash out through Paypal or direct deposit
- Join 30 million who downloaded Upside
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Tools that can help you lower your bills
Earn stock as you spend
The Stash2 <p>Paid non-client endorsement. See Apple App Store and Google Play reviews. <a href="https://www.stash.com/start-investing/financebuzz10">View important disclosures.</a></p> <p>Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. Nothing in this material should be construed as an offer, recommendation, or solicitation to buy or sell any security. All investments are subject to risk and may lose value.</p> <p>Advisory products and services are offered through Stash Investments LLC, an SEC registered investment adviser.</p> banking account3 <p>Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back® Debit Mastercard® is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.</p> comes with no overdraft fees (your transaction would be declined and no fee charged), no monthly balance fees, and no monthly maintenance fees4 <p> For a complete list of fees please see the <a href="https://cdn.stash.com/disclosures/stride-deposit-account-agreement.pdf" target="_blank" rel="noopener noreferrer">Deposit Account Agreement</a> for details. </p> . They'll also help you manage your money better with budgeting tools, spending insights, and unlimited financial advice and education.
The Stash banking account also comes with a revolutionary rewards program that lets you earn stock as you spend5 <p class="">All rewards earned through use of the Stash Stock-Back® Debit Mastercard® will be fulfilled by Stash Investments LLC and are subject to <a href="https://lp.stash.com/stride-stash-stock-back-rewards-terms-and-conditions/" target="_blank">Terms and Conditions</a>. You will bear the standard fees and expenses reflected in the pricing of the investments that you earn, plus fees for various ancillary services charged by Stash. In order to earn stock in the program, the Stash Stock-Back® Debit Mastercard must be used to make a qualifying purchase. Stock rewards that are paid to participating customers via the Stash Stock Back program, are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.<br></p> . Just swipe your Stock-Back® Card3 <p>Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back® Debit Mastercard® is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.</p> , and you can earn small pieces of stock that correspond to your purchase—like Netflix, Domino's, Walmart, or anywhere else you spend. It's automatic, and at no additional cost to you!
Use an all-in-one budgeting app
Monarch keeps your financial data in one place by tracking your savings, spending, credit cards, and assets. It has many features, like forecasting your spending and tracking your investments so you can reach your financial goals. Learn more in our Monarch review.
FAQs
How do you reduce your monthly bills?
Take inventory of your living expenses and see where you spend the most. You can lower your homeowners and car insurance by shopping around and comparing rates. If you spend a lot on subscriptions, you can use apps like Rocket Money to find and cancel them.
What do you do when you can't afford to pay your bills?
If your bills exceed your income or you're behind on your payments, prioritize your primary needs, such as housing and food. Next, determine your budget and the amount you need to earn to cover your bills. Look for areas where you can immediately stop spending, such as subscriptions, and consider local gigs or side hustles that you can quickly get started with.
Bottom line
Making small changes that add up is a big part of learning how to lower your bills. Managing your money and looking for ways to save might mean cutting unused subscriptions, making your food at home, keeping tabs on the thermostat, or even bundling your home and auto insurance. You can make a positive impact on your budget through research, cutting unnecessary expenses, or even taking steps to start a side hustle.
