How to Reduce Monthly Variable Expenses

Don’t get caught off guard

You can save money on groceries by switching from name brands to store brands. Image from Flikr.

You can save money on groceries by switching from name brands to store brands. Image from Flikr.

Everyone has some variable expenses in their budgets, and if you are not careful, an unexpectedly large electricity or gas bill can really break your budget.

Payday loans can help in this situation, but the secret to staying on top of your budget is to reduce your variable expenses wherever possible.

Utilities

One area where it is possible to save money is your utility bills. If you struggle to pay gas, water and electricity bills when they are due, find out whether your utility company offers different payment methods. Most do,  and it is a good idea to take a look at these.

You might be able to have your gas and electricity payments averaged out to a monthly cost. Although this may mean having to make changes in other areas, it is worth doing. When your utility bill is averaged and split evenly, you don’t have to worry about hefty bills during the winter.

Mortgage

If you currently have a variable rate mortgage, you may want to consider refinancing. Refinancing does involve closing costs with your current lender, but most lenders now will add the closing costs to your new mortgage. If you have the money available, it is far better to pay the closing costs at the beginning  because then you will save on interest later on.

\Switching from a variable to a fixed rate mortgage may not seem like a good idea, but the fact is that a fixed rate actually saves you money in the long term. When you have a variable rate mortgage, it is great when interest rates go down and you can pay less, but then there are the times when the interest rate goes up and this could wreck your budget. You can save hundreds of dollars a year in the long term if you switch from a variable to a fixed mortgage rate.

Food bills

The current economic crisis has sent food bills through the roof. A loaf of bread now costs more than double what it was twelve months ago, and it is not only bread that has gone up in price, it is virtually everything. The first thing you should do is to switch from brand-name goods to store brands, as this can save you a lot. Most store brands are just as good as name brands, but they can be as much as 40 percent cheaper.

Some people are switching supermarkets to save money on their food bills, and  this is another good way to save money.

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