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5 Genius Ways To Save On House Related Bills

    There are two essential things about rich people. First, they know where to invest, and the second thing is they know how to cut down expenses. You cannot get away from your bills. However, some of these bills are useless, and many of these expenses are not needed. The important aspect of money management is saving first and then spending whatever money you leave for yourself. If you think your household bills are on the higher side, you need a proper audit of your accounts. Scan your statements in detail, looking for every penny spent. If you think a particular expense is wasteful, cut it down immediately. The first step in saving money is taking financial control of your costs. Money management is all about common sense. All you need is to invest in the right places and cut down on wasteful expenditures. There are a few calculations that you should know before getting started with the ways to save money. 

    5 Financial Formulas Of Money Management

    Compound Interest. You must have learned about compound interest in school, but did you realize how powerful this becomes with the time factor? You would have also heard financial advisers making statements about the power of compounding. Compounding is all about earning interest on the principal and accumulated interest. The longer the duration, the more significant its potential will be.

    Inflation. Inflation lowers purchasing power. Have you made a good saving plan that will fetch you a fair amount after five years? The sad part is it may not be able to beat inflation. Remember this formula to calculate the inflation rate.

    Inflation rate = Amount * (1+ Inflation Rate) ^ No. Of Years.

    • Purchasing Power. If you want to know the purchasing power of $1000 after ten years at a 5% inflation rate, apply this formula.

    Inflation = 1000/ (1+5%) ^10 = 613.90

    The value of $1000 will decline to $613.90.

    1. Loan EMI. Equated Monthly Installment is a general term since most of us have taken loans. It may sound equal, but it is an unequal matrix of interest and principle.

    EMI = (A*R) *(1+R) ^N / ((1+R) ^ N) – 1) 

    [A is the Amount, R is the rate of interest, and N is the number of years]

    1. Liquidity Ratio. It may sound like a complicated term, but it is not that complex. This ratio indicates the overall financial position of an individual. This ratio is calculated as follows:

    Total Liquid Assets / Total Current Debits. This ratio should always be greater than 1 for good financial health.

    5 Genius Ways To Save On House-Related Bills

    Cut Down Electricity And Water Bills

    Do an electricity and water consumption audit; the significant dent in your pocket is made by these two. Make your house more energy efficient by sealing all electrical leakages. Every degree decrease in temperature from the thermostat will reduce your bill by 5%. Get energy-saving appliances to cut down the electricity bill. During the daytime, switch off the lights; choose adequate ventilation with transparent windows for sunlight. Keep your refrigerator stacked up; an empty fridge will consume more electricity. Use fans more often than air conditioners; don’t use both fan and air conditioner together; it will lower the cooling effect by 5 degrees. Solar heating panels are energy-efficient and cost-effective to install. Always remember to switch off the appliances when not in use. 

    A toilet leak can waste 250 gallons of water a day. Inspect all the places for water leakages and get them fixed. A longer shower can waste a lot of water; take a quick shower instead and avoid using a bathtub. Install aerators; these will slow down the speed of water that comes out of the tap shower. Do up your laundry only when your washing machine is full of clothes, never wash a small number of clothes every day, and do all your washing once or twice a week. This way, you will save water and electricity.

    Cut Down Cell Phone Bills

    We all think we cannot do away with the cell phone bill; it is like a vestigial organ. To double ensure we don’t get out of communication, we have a landline connection, a wireless connection, and an unlimited data plan for all the house members. Do away with your landline phones; you don’t need them anymore. Take a plan that suits your needs. If you speak less than 20 minutes a day, choose a consumption plan instead of an unlimited plan. If you have more members at home, choose a family pack. 

    Don’t replace your mobile phone every year; it is a wasteful expenditure. If your phone is in sound shape, keep it for another year. A mobile phone works perfectly for at least three years, and the technology is also good enough to sustain. When choosing a new mobile phone, see that it should be with you for at least three years.

    Reduce Your Credit Card Bills

    Keep only one credit card in your wallet; even better if you own only one. Try and use a debit card instead because it will stop you from overspending. Avoid spending everything that comes in your way and think twice whether you need it or not. Keep your credit cards in a safe place and avoid carrying them often. This trick will save you from a shopping spree. Negotiate with your creditor on lower interest rates or pick up a credit card after a complete survey of the interest rates. Always prioritize your budgets. Prioritizing your budget is the key to saving money.

    Get Rid Of The Cable TV

    How many times have you watched cable TV? You will be surprised that you are only paying the bill, and it has been months since you have watched it. Almost all TV shows are now streamed online; all you need is a hookup to watch your favorite movie or show online. YouTube videos are fantastic for learning and entertainment as well. The Netflix plan also requires introspection. Go for a monthly plan; ditch it if you know you are hardly watching it.

    Reduce Your Monthly Food Expenses

    Do an audit of your groceries in your home. You will be surprised to see how many groceries you bought last month that you do not use. You need to plan your meals and purchase accordingly. This way, you will not buy unnecessary things. When you are shopping, keep a list and stick to it. People strategically designed malls in a way that you will come for two things and end up buying twenty. Use your coupon codes and cashback apps for shopping. Always check your stores and refrigerator before going shopping; the reason we say make a list. Consume the leftovers, and don’t toss them into the trash bin.

    5 Financial Rules To Save Money

    1. Keep track of your expenses; never spend more than 80% of what you earn. It also includes your credit card bills and EMIs.
    2. Your savings will save you in crisis. Make a rule to save first and spend what is left over. Invest wisely in different baskets and for various terms and plans.
    3. Secure your family and assets. Insurance is a must; choose the right plan without going overboard.
    4. Avoid taking loans when you can do away with them. It’s alright to take a home loan or even a car loan, which may be necessary. But avoid other loans; it will put you in bad debt. 
    5. Follow the 50:30:20 rule of budgeting. Spend 50% on what you need, 30% on what you want, and 20% on your financial goals. 

    To solve a problem, you must know the situation. A proper financial audit will not only save those dollars, but you will be able to spend more on desirable things like your hobbies, education, and a dream vacation. Control the expenses but don’t stop the charitable work; we all need each other’s help to live and grow.


    We are confident following these five genuine ways to reduce your house bills will mitigate the undesired expenditures. It will change your lifestyle into a more organized, more responsible, and environment-friendly citizen.  Use any of these tips in your daily life and watch your bank account grow from savings.