Lowering your monthly bills

Resources · Money basics · 4 min read Starting out

Key points

• Regular bills tend to creep up over time without anyone noticing.
• Comparing plans once a year can lower monthly bills without changing how you live.
• Small cuts across several bills add up over a year.
• If you can’t cover repayments on debts, free, confidential help is available.

How to lower monthly bills

Want to lower monthly bills? Most of it comes down to a few habits. Compare plans at renewal time. Pick a plan that matches what you actually use. Cancel what you don’t need, and cut usage where it’s easy. Most of this takes an hour or two a year.

Bills are a great target for one reason. A saving on a regular bill repeats every single month, and you don’t have to lift a finger after the first time.

Start with a list

Grab a recent bank or card statement and list every regular bill on it. For each, write what it’s for, what it costs each month (or each year), and when the contract or plan ends, if there is one.

Not sure you’ve caught them all? Our guide to how to read your bank statement helps you spot the sneaky ones.

Bill by bill

Phone and internet

Start with your actual usage. A lot of people pay for far more data than they ever touch. When your contract ends, look at what else is out there, because out-of-contract plans sometimes cost more than newer ones. A prepaid or no-contract plan suits some people well.

And be careful with bundles. A bundle is only cheaper if you’d use every part of it.

Insurance

Compare at renewal. Renewal prices can climb even when nothing about you has changed. While you’re at it, check the cover still fits your life, say if your car is older now or your household has changed.

Then look at the excess or deductible. A higher excess often brings the premium down, but you pay more if you ever claim. That’s a genuine trade-off, and only you can weigh it. With some insurers, paying yearly also costs less than paying monthly, if you have the money set aside.

Energy and water

Compare plans and tariffs where your area lets you switch. The rules differ a lot by country and region. Check for concessions or rebates too, since some governments and providers offer discounts to certain households. Who qualifies varies by country.

Then there’s usage. Heat or cool one room instead of the whole home. Take shorter showers. Wash in cold water. Switch devices off at the wall. None of it is glamorous, but it adds up.

Subscriptions and memberships

Streaming, apps, gyms, software, boxes that land on your doorstep every month. Often the quickest win of the lot. The subscriptions audit walks you through it step by step.

Banking fees

Monthly account fees, overdraft fees and late fees add up. Some accounts waive fees if you meet certain conditions. Our guide to fees that grow your debt goes further.

A worked example

Say you review four regular costs and make these changes:

That’s $80 a month, or $80 × 12 = $960 a year. The insurance line is the yearly price divided by 12. The same maths works in any currency.

Notice what’s missing. Nobody went without anything. Every dollar came from matching plans to real use and comparing at renewal.

What to do with the savings

Here’s the trap. Money you save on bills has a habit of quietly vanishing into everyday spending. So give it a job. Some people move the difference out on payday, before it can drift.

It might go toward an emergency fund, or toward a debt, or into a sinking fund for the costs that only come round once a year. Which one depends on your situation and what matters most to you right now.

If bills are already more than you can manage

Cutting bills helps. But it only goes so far. If you’re falling behind on debt repayments, you don’t have to work it out alone. Free debt help is confidential and available in many countries.

Common questions

Which bills are easiest to lower?

Subscriptions, phone and internet plans are often the quickest, because plans change often and switching is usually simple.

How often should I review my bills?

Once a year works for many people, or whenever a contract or policy is about to renew.

Is switching providers worth the hassle?

It depends on the saving and the effort. Some people switch for $10 a month. Others only bother for bigger savings. Work out the yearly difference and the answer usually gets obvious.

Try it

Our budget calculator shows how lower bills change what’s left each month. If you’re putting savings toward debt, you can also find your Freedom Date.

General information only, not financial advice. Your situation is your own.