13 Money Saving Ideas That Help You Lower Everyday Expenses

A letter arrives. It says your home used more electricity last month than similar homes nearby. It isn’t a bill, and somehow it gets your attention more than a bill does.

That was the idea behind a program studied by economist Hunt Allcott in a 2011 paper in the Journal of Public Economics. A company called Opower sent Home Energy Reports to utility customers that compared their electricity use with their neighbors’. Across randomized experiments involving 600,000 treatment and control households around the United States, the average program reduced energy use by 2.0 percent. Households that used the most electricity before the program cut back by about 6.3 percent, while the lowest users cut by only 0.3 percent. A summary from the research group J-PAL found that the reports caused an immediate drop when they arrived, which faded fairly quickly, though some of the effect lasted even after households stopped getting them. The researchers believe people mostly saved energy through behavior changes, like adjusting their thermostats.

Two cautions. A 2 percent average is modest, and this was about electricity, not all expenses. I’m borrowing the idea that seeing your usage, ideally next to a comparison, gets you to act, and that’s my extension.

The 13 ideas below are about lowering everyday expenses. The first three come straight from that finding, and the rest are my own. I’ll flag which is which.

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1. Look at your electricity use, not just the bill

The reports worked because they made usage visible. Log in to your utility account and find your usage chart, if there is one. Look at how many units you used, not just the dollar amount.

Seeing usage is different from seeing a price. When I first checked mine, I found a spike every January that I’d never noticed. That’s my experience, and it’s the same basic idea as the study.

Try this: Log in to your utility account and find your usage for the last twelve months.

2. Compare this month to the same month last year

The study compared households with neighbors. You can compare yourself with yourself. Put this year’s month next to last year’s and look for differences.

If your usage is up, ask what changed. A new appliance, a new routine, or a leak could be behind it. Comparing with your own past is my version of the study’s idea.

Try this: Write down this month’s usage next to the same month last year.

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3. Ask your utility whether it offers usage comparisons or tips

Some utilities offer tools that compare your usage to similar homes, and some don’t. It costs nothing to ask. Call or check the website.

If your utility has a program, use it. If it doesn’t, ask about free energy checkups or usage alerts. Availability varies, and I can’t promise yours has one.

Try this: Search your utility’s website for “usage compare” or call and ask what tools they offer.

You can’t cut what you can’t see, so start by looking.

4. Adjust your thermostat a degree or two

In the study, households likely saved energy through changes like adjusting thermostats. A small change in heating or cooling settings can add up over a season.

Pick a level that’s still comfortable. Start with a single degree. That suggestion is mine, and you can adjust it to fit your home and health.

Try this: Change your thermostat by one degree for a week, and see whether you notice.

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5. Review your phone and internet plans once a year

Plans change, and so do your needs. Once a year, look at what you’re paying and what you actually use. Ask if there’s a cheaper plan that still fits.

A few years ago, a short phone call cut my internet bill without changing the service. That’s my own experience, and results vary.

Try this: Look up your phone and internet bills, and call one company to ask about a better rate.

6. Shop around for car and home insurance

Insurance prices differ between companies. Every year or two, get a couple of quotes and compare them to what you pay. Make sure you’re comparing similar coverage.

Don’t drop coverage you need to save money. A licensed agent can help you compare. That’s my caution.

Try this: Get one quote for your car or home insurance and compare it with your current policy.

7. Use unit prices at the grocery store

The price per ounce or per item tells you more than the sticker price. Shelf labels often show it. Compare similar items using that number.

Bigger packages aren’t always cheaper per unit. It takes a moment to check. That’s a practical habit of mine.

Try this: On your next shopping trip, compare the unit prices on three items you buy often.

8. Plan a few meals before you shop

A rough plan reduces impulse buys and waste. Think of three or four dinners, check what you already have, and buy only what’s missing.

Last winter, I started planning just four dinners a week, and our grocery bill dropped without any big sacrifices. That’s my experience, not a study result.

Try this: Plan four dinners for next week and write your shopping list from that plan.

9. Combine errands to use less gas

Driving costs money with every trip. Group errands into one loop when you can. Fewer trips mean less fuel.

It also saves time, which has its own value. Plan your route before you leave. That’s my own tip.

Try this: This week, group your errands into one or two trips instead of several.

10. Check your subscriptions and memberships

Recurring charges add up quietly. Look over your statements for anything you don’t use. Cancel what you don’t need, and keep what you love.

A five-minute scan can save a surprising amount. I do it every few months. That’s my habit.

Try this: List every subscription on your last statement, and cancel one you don’t use.

11. Look for free versions of things you pay for

Libraries lend books, movies, and sometimes tools. Many communities offer free events. You may be able to replace a paid service with a free one.

Check before you buy. That’s a simple habit, and it’s saved me a lot over the years.

Try this: Look up what your local library offers, and use it for one thing you’d normally pay for.

12. Fix small things before they become big bills

A running toilet, a dripping faucet, or a door that leaks air wastes money quietly. Small repairs can be cheap, and waiting can be expensive.

Use caution, and call a professional if a repair is beyond you. That’s my practical advice.

Try this: Walk through your home and write down three small things to fix.

13. Track your progress so you can see what’s working

Every month, write down what you spent on your everyday categories, and compare it to the month before. Seeing the numbers is the heart of the study’s idea.

Watching the total move down is motivating. If a change isn’t helping, try another. That’s my own approach.

Try this: Choose three everyday categories, and write down this month’s totals to compare next month.

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