5 Ways To Lower Your Monthly Bills in Case of Recession
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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The projected odds of a recession have been declining following the announcement of a temporary tariff truce between the U.S. and China, but it’s always best to be prepared for the worst when it comes to your finances. One way to prepare for a possible recession is to lower your monthly expenses, including the bills you pay each month.
“Trying to keep your bills as low as possible is always good financial practice,” said Dan Wilderness, founder of The Financial Wilderness. “It’s especially important when facing a potential recession, as this comes with a raised risk of job losses or, for the self-employed, regular income dropping. Managing down your bills will provide some extra cushioning.”
Here are some ways you can lower your bills now to give yourself some financial cushion if a recession were to occur.
Eliminate Recurring Expenses for Services You No Longer Use
You may be paying monthly subscription fees for services you no longer need or want. Audit all of your recent credit card bills to find charges that could fall into this category.
“So many people are leaking money on auto-pay subscriptions they forgot existed,” said Laura Worzella, chief operating officer at OneAZ Credit Union. “Pull up your account and check for sneaky recurring charges. Also check your inbox for random payment reminders you may be ignoring.”
Negotiate With Your Service Providers
You may be able to lower bills with various service providers by picking up the phone and doing some negotiating.
“Be nice, but firm,” Worzella said. “Mention how long you’ve been a loyal customer, highlight your solid payment record, and just ask, ‘Is there anything you can do to lower my bill?’ You’d be surprised — many companies have special rates, discounts or hardship programs but won’t advertise them unless you ask. Worst case, you get a no. Best case, you save cash every month.”
Be Mindful of Your Energy Usage
Putting some extra thought into your household habits can cut down on utility bills.
“Turn off lights, unplug unused stuff, and stop cooling or heating an empty house,” Worzella said.
You may also want to check with your utility company directly about ways to save.
“A lot of them offer budget billing, energy-saving tips or even government-assisted programs you may qualify for,” Worzella said. “This is one of those areas where a few small changes can make a real dent.”
Look For Ways To Cut Back on Car-Related Expenses
After your rent or mortgage, your car is typically your next biggest monthly expense.
“Depending on your situation, it may be time to refinance, trade in or even sell if it’s not serving your current needs,” Worzella said. “Stay on top of maintenance, because ignoring that oil light only leads to [spending more money] later. Want to save on gas? Carpool. Combine errands. Use public transport when you can. It’s not glamorous, but it works and it adds up fast.”
Review Your Data Usage
You may be paying more than you need to for your mobile phone plan.
“Most consumers with unlimited plans use only 15 GB of data each month,” said Andrea Woroch, a consumer and money-saving expert. “Look at your actual data usage in your plan and see if your current provider offers a lower-tiered data plan that matches your usage.”
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Sources
- Dan Wilderness, The Financial Wilderness
- Laura Worzella, OneAZ Credit Union
- Andrea Woroch, AndreaWoroch.com
