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How to Save Money on Home-Related Bills


According to the Bureau of Labor Statistics, middle-class people (defined as Americans who earn $50,000 – $75,000 annually) spend 26.7 percent of their income on housing and another 8.2 percent of their income on utilities such as electricity, water and home gas. (This doesn’t include gasoline for vehicles.)

That means middle-class people are spending 35 percent of their money on their buying and maintaining their home. In my view, that’s the spot you should first target if you’re looking for ways to save.

Here are a few tips that can help you save money on home utilities, your home mortgage, and other housing-related bills.

#1: Cover up drafts. Many people don’t realize how much money goes out the nooks and crannies of their home. Heating and cooling costs can be drastically reduced by sealing up your home and keep “inside air in” and “outside air out.”

#2: Consider refinancing your mortgage.If you qualify, consider refinancing to a fixed-rate mortgage.

Interest rates on home financing have risen slightly, as compared to 2012. The average rate on a 30-year mortgage these days is roughly 4.25 percent, according to That’s an increase over the 3.25 percent rates that were being offered last year.

But interest rates are still at historic lows — so if you haven’t refinanced yet, take advantage of this opportunity before rates rise further. As a general rule of thumb, a refinance is worth the closing costs if you can knock off one percent or more.

#3 Group monthly bills. Do you use cable television, need Internet access, and have a cell phone? Why not consider purchasing all these services from one provider? Many local cable networks will offer you a considerable discount if you purchase all of your technical services through them. (Better yet, cancel your cable entirely and entertain yourself by watching free or cheap television shows and movies on, Netflix, Redbox and Amazon Prime, instead.)

#4: Insulate your pipes. You can easily cut your winter heating bills by purchasing insulation to put around the water pipes. By doing so, you’ll prevent heat from escaping through your pipes. And don’t worry — although some people might balk at the idea of putting porous foam that close to water, you don’t need to worry. Assuming your pipes aren’t leaking, the insulation will stay dry.

#5: Shop around for insurance. Between car and homeowner or rental insurance, your monthly bill can get quite high. Many insurers offer a discount if you buy both car and home insurance through them. Ask your insurance agent about “bundled” discounts.

#6:Get clean. You can actually lower your electricity bills by deep-cleaning your home. How? You see, many major appliances — like the dryer and refrigerator — have vents or filters that can get blocked by dirt or lint over time.The more dirt is in the way, the harder your appliances have to work. This increases your electricity bill. Spend a weekend afternoon deep-cleaning your vents and filters. It might cause a drop in your power bill!

Kennedi blogs about budgeting and saving at Face & Fitness. Her latest post is How to Save Money … Fast!

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My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. Deep-cleaning your home can really help us in a lot of ways, especially with our monthly bills. Our family usually do this every three or four weeks, just to make sure everything is doing fine.

    • I find that deep-cleaning is also a good practice for “clearing your head,” organizing your thoughts and bringing everything into focus.

  2. Getting more out of what you own and what you earn starts at the core of our financial lives; how we bank and borrow. As consumers the methods by which we manage our personal finances is as inefficient as you can find. We need to model our financial management practices like the banks. If you look closely they get much more value out of what we own and earn then we do so why don’t we model ourselves after the msot efficient money managers on the planet? We can and it is simply a matter of education and understanding how to use the tools they sell/offer us everyday.

    • I recently was talking to someone who mentioned that, as part of his job, he helps create a budget for his company. But it never occured to him to do it for himself. We should definitely look at biz best practices and model them in our own lives.

  3. We recently shopped around for insurance after we got married and were shocked that USAA no longer had the best rates for us. We switched to GEICO and saved $360/yr! I hate their commercials, but they finally saved us money.

    • Congrats on the big savings! (I actually love those commercials!)

  4. Dust definitely can cause problems with the efficiency of the furnace and the refrigerator. It also can cause computers to overheat and crash.

    Another way to save money is to either get rid of your land line, or purchase a VOIP box like Ooma or Magicjack and still get rid of the land line charges. I got reminded about the VOIP boxes in a recent post at We bought an Ooma and it is working great.

    • I’ve heard great things about MagicJack. Never tried Ooma, but it sounds good!

      • Most all reviews seemed to say that the Ooma had better sound quality. I went with that. I have never used a MagicJack, but I’m very happy with the Ooma.

  5. For me I set the priority bills like home mortgage, electricity, internet, water. Sometimes I turned off my AC to reduce my electricity bill.

  6. Interesting tips. Sounds like I can also benefit from a “deep clean” of some of my appliances…they’ve been gathering dust for quite some time now 🙂
    Additionally, I think one can also switch to energy efficient appliances and bulbs. Plus…unplug those appliances when they are not in use.

    • Energy-efficient bulbs are great … buy and install once, never think about it again, and let the savings grow!

  7. Derek- Refinancing is a great option, I saved $400 per month and that extra sometimes goes on my new mortgage. The downside is extending out the mortage so its best to get a 15 year mortgage. It’s all up to your goals though. Great article. Another way to change the air filter each month, it cuts costs A LOT!

    • @Monica, Every time I refinanced to get a lower mortgage interest rate, I just continued making the same monthly payment that I had previously been making. That plus a little extra got the house paid off in 9 years.

  8. A constant deep-cleaning surely makes a lot of difference. We usually schedule this twice every month and it does make a big difference in our electric bill.

    • That’s great to hear! It’s a win-win when you can have a cleaner home AND lower energy prices, at the same time.

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