A light-skinned woman sits on the floor looking over her home expenses for her budget.

How to Save on Household Expenses and Monthly Bills

Updated April 3, 2021 . AmFam Team

Wondering how to save money on household expenses and monthly bills? Start building your savings with our tips on how to save money fast today!

There’s a lot you can do to control your spending and save more of your hard-earned cash each month. One big key to financial success is to ask how to save money each time you’re spending it. That includes those automatic payments and other expenses that sometimes slip into the background of your finances.

And if you’re wondering how to save money for a house, you can really sock away some extra money if you trim down these monthly payments where you can and aim that surplus cash into a new savings account.

It’s important to look at every bill and expense each month to see if there are ways to cut down on costs — even smaller bills can add up over time. Things like buying a cup of coffee or purchasing lunch every day, sticking to cable instead of cutting the cord and buying name-brand groceries instead of the off-brands label can all cost a lot of money over time.

Take a look at these simple tips for reducing your expenses and building new financial habits that can really help you save you more money.

What Are Household Expenses?

So, what exactly is a household expense? Good examples of household expenses are anything that you regularly spend money on every month — like utility bills, credit cards or groceries. But they don’t typically include occasional purchases like clothes, toys, electronics or appliances, because those purchases are not usually consistent monthly payments and they don’t recur regularly.

If you’re thinking about how to save money for a house, trimming your monthly household expenses can be a great way to start collecting cash.

Examples of household expenses:

  • Payments to credit cards
  • Cell phone bills
  • Rent or mortgage payments
  • Gym membership monthly dues
  • Home insurance payments
  • Grocery store expenses
  • Utility bills
  • Cable and internet
  • Car insurance payments
  • Taxes paid monthly
  • Cable TV and entertainment expenses 

How to Budget and Save Each Month

There are many ways to cut household expenses and save each month. A good place to start is to carefully review your recent checking account statements, and lean on technology to help uncover spending habits. This can allow you to better understand how your personal finances are shifting from month to month. And most importantly, you’ll begin to see patterns in the way you’re spending.

 Here are a few small, easy changes you can make to start reducing your monthly expenses today:

1. Download a personal finance app

Leverage the powerful banking tech available today and learn how to budget and save each month in no time at all. Here’s a big bonus: many of these same apps can help you achieve a higher credit rating, too.

Some are free, others require a monthly subscription — but as they say, “knowledge is power.” And these apps know how to save more money because they analyze spending patterns in your checking account. And you'll also get graphs that visually explain where your money's going every month, which can be a real eye-opener. 

These apps are worth your consideration:

2. Take on meal planning and cook at home

The simple act of cooking at home can save you a lot. Think about those expensive restaurant bills with appetizers, drinks, the main course, dessert and tip — all of that adds up quickly. By simply preparing your meals at home, you’re already winning!

3. Use shopping lists

Planning your meals isn’t just about making a weekly menu — it can help you learn how to save money on groceries and spare you the desire for impulse purchases. With a shopping list, you know exactly what you need to buy for meals each week, so you can be more disciplined. Shopping lists can also help you prepare lunches — instead of buying one every day.

4. Cancel cable TV and trim entertainment costs

Long commercial breaks, inconvenient broadcasting schedules and it’s still mostly reruns? Cut the cord and end your cable contract instead of renewing. You can get free local channels with a digital antenna, and you can pick up a la carte streaming services to watch your favorite shows for a fraction of the monthly price of cable.

5. Reduce your electricity usage

We all know to turn off the lights when we leave a room, but did you know that unplugging your always-on appliances when you’re not using them can save you money? You may have heard of something called vampire energy — electricity consumed when an object isn’t in use, but is still plugged into an outlet. Your microwave, desktop PC and more are all pulling money out of your wallet, even when they’re switched off or not being used.

Wondering how to save money on electric bills? Try putting into practice these money-saving tips:

  • Swap out incandescent light bulbs with high-efficiency LEDs
  • Use appliances like your dishwasher and electric dryer at night — when rates can be lower
  • Enroll in time-of-use and peak time savings plans with your electric utility
  • Use power strips to keep electronics from consuming phantom loads when they’re not in use

6. Invest in smart home tech and save

Another great way to save on utility bills is to pick up a smart thermostat that allows you to adjust the temperature — even when you’re not home. The companion app can learn your “home and away” habits and predict when you’ll be arriving. They’ll make adjustments to your heating and cooling schedule to optimize efficiency and still keep your home comfortable during regular at-home home hours.

The simple act of putting your thermostat on a schedule can save you a lot of money. If your air conditioner runs even when you’re not home, you could be losing out on extra cash. If you’re wondering how to save money for a car, trimming energy expenses is a great way to build capital over several months. In the colder seasons, an unoccupied house can safely sit at 65 degrees, so set the thermostat to warm up the house 30 minutes before you get home, instead of having it run all day.

Best of all, when paired with other smart home tech, your new thermostat can help to score you a smart home discount.

7. Purchase refurbished and used items

Not everything needs to be bought brand new. Instead of buying the latest new appliances or electronics, check listings on sites like Craigslist or eBay for used or refurbished versions in good condition. When buying used, you should always make sure what you’re getting is of good quality, so request an inspection or assessment by either yourself or a professional you trust. 

You can also save a lot on household expenses by shopping at thrift stores. Buying clean, used clothes, books, dishware and more helps keep these items out of landfills and helps you hold onto more money — month after month.

How to Save on Your Insurance Costs

You see? Figuring out how to cut costs and save money at home isn’t that hard. By investing a little time and focusing on ways to save, you’ll find the funds you need to achieve your dreams in no time at all!

And don’t forget: by bundling your home and auto insurance policies you can save a lot on your insurance costs. Signing up for our safe and defensive driver programs and adding smart home security features to your house — those are other great ways you to save money on your insurance premiums. Connect with your American Family Insurance agent (Opens in a new tab) to learn about what discounts that can help you save a lot of money.

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    20 Questions to Ask When Renting an Apartment

    Choosing your new apartment isn’t an impulse decision. The choice you make will have an impact for a long time. There are many different things to consider as you tour one possible home after another. On top of that, landlords and management companies work hard to make them all seem perfect.

    How can you tell which one’s the right fit for you? Here are 20 key questions to ask when renting an apartment. The answers can give you a better idea of what you’d get from each one.

    How Much is Rent & the Security Deposit?

    Any apartment hunter should ask themself this crucial question: “How much should I spend on rent?” Setting a budget ahead of the search helps narrow the possibilities. You’ll save time by eliminating options that are too expensive.

    Still, relying on online listings alone may not be enough. It’s better to personally ask the landlord, whether by calling, emailing, or visiting. Make sure to also bring up the security deposit, as well as any other upfront costs they may ask of you. This will save you from unpleasant surprises before you sign anything.

    How Much are Utilities and What Do I Cover?

    Every apartment complex handles utilities differently. Water, electricity, air conditioning, heating, gas, and more may be split between landlord and tenant. Then there is the matter of which ones you’ll need to get yourself. Your apartment may come with cable and wi-fi, but you may be responsible for them on your own.

    Only your landlord will know for sure, and they should be clear about what’s expected of you. Before leasing an apartment, you should ask what utilities are available and which ones are covered. Record the answers, factor the costs into your budget, and look for the place that offers the most for the least.

    How Does Parking Work?

    Some apartment complexes have their own parking lots, with many spaces reserved for tenants and a few set aside for guests. Others may give residents access to a dedicated structure, providing greater security — but possibly at a higher cost. Others still may only offer street parking, which can be expensive to maintain.

    In short, parking may be a complex situation involving specific locations and extra costs. If you have a car, don’t just ask if parking is available. Get the details. As you weigh your options, consider what’s best for your car as well.

    What’s the Pet Policy & Is There a Deposit or Fee?

    The pet policy won’t matter to every apartment hunter. If you have a furry friend or might want one someday, make this one of their first questions to ask when touring an apartment. A “no” answer is no deal, no matter how great the other perks may be.

    Some landlords may allow pets if you pay a one-time deposit or additional monthly fees. Make sure to keep that in mind during your search.

    What Amenities are Included?

    Utilities cover the most vital parts of a home — the things that make living there comfortable. Amenities are the complex’s welcome bonuses — the things that make living there enjoyable. Common examples include clubhouses, swimming pools, public kitchens, communal laundry machines, and fitness rooms.

    Amenities are great for those who use them, but their presence can justify higher rent. As your landlord takes you through each selling point on your tour, ask them whether these perks are included with your price. Also, make sure to consider if you’ll even use them.

    Do I Need Renters Insurance?

    Home insurance is for houses. If you live in an apartment, you look for renters insurance instead. In fact, some places make it mandatory for all residents. Be sure to ask your landlord in advance so you can make any arrangements you need.

    This practice is all about liability. Landlords have their own insurance, but it’s based on their duties and would only cover their share of the damages. Renters insurance offers protection for your living space and your belongings. Even if it’s not required, getting your own policy could bring you peace of mind.

    Can You Describe the Application Process?

    Applying for an apartment can be complicated and time-consuming. You might have to pay fees, undergo background checks and other screenings, and more just to see if you qualify. This may be preferable to the alternative: apartment listings that promise no credit check may be scams.

    You could always learn about each step of the application process as you go. Still, it never hurts to know ahead of time, especially if there are any fees and risks. If anything is unclear, the landlord should explain it to you.

    What Should I Know About Rent Increases?

    A variety of factors can change the value of an apartment. Examples include market shifts, new installations, repairs and replacements of fixtures. Your rent will likely not change for the duration of your lease. Once the time comes to sign again, though, your monthly payments may very well go up.

    This may not seem like a pertinent question when starting a lease. Still, making it one of your questions to ask when touring an apartment could be useful. How your potential future landlord approaches the matter can tell you what to expect. At the very least, it can help you choose whether to look for a new place well before your lease ends.

    What are the Lease Length Options?

    How long are you looking to stay at your next apartment? One year, two years, longer, less? Not everyone has a plan in mind, which means the apartment’s available options may give you an idea of what to expect in the future.

    Landlords always inform apartment hunters about the duration of their lease. However, you might need to probe them for other available options. Be sure to make this one of your questions to ask before leasing an apartment, even if they only mention one length that sounds good. They might have something better.

    Can I Make Changes to the Rental Unit?

    Your apartment may come pre-furnished, but it’s unlikely to be pre-decorated. Few people are content with blank walls and sparse spaces. Most prefer to personalize and beautify their home with art, decorations and other belongings.

    Unlike houses, apartments usually only have temporary residents. The building’s owner may not allow certain kinds of changes, believing they may hurt the unit’s future value. Take the time to go over policies. That way, you can get a better idea of how you’ll make your space feel like a home.

    How Do Maintenance Requests Work?

    Besides rent, tenants might only interact with their landlord through maintenance requests. After all, it’s the complex owner’s duty to keep everything in their apartments running smoothly. If your shower stops pumping heated water or your lock gets sticky, maintenance will get it fixed.

    Asking about the process of filing maintenance requests can give insights to how landlords view this responsibility. Does the process seem straightforward or complicated? Are approvals easy, or do they require a great deal of evidence and demonstration? The answers may reveal how long this landlord will let you live with inconvenience. Few questions to ask about apartments are more revealing than this.

    What’s the Guest Policy?

    In most cases, a guest policy doesn’t apply to someone who’s just visiting for a few hours. It covers situations where someone might want to stay at a tenant’s apartment for a few days or longer. Depending on the terms of the policy, you might even need permission for someone to spend the night.

    Don’t just assume that any landlord would be okay with your best friend crashing on your couch for a while. Get the details on the guest policy before moving in. They’ll tell you what permissions they’d grant and how you can get them granted.

    What’s the Neighborhood Like?

    The oldest real estate myth holds that three factors must guide where you choose to live: “location, location, location.” There’s more to it than that, as this list of questions to ask when renting an apartment should make clear. Still, the area around the complex is important to consider.

    Getting info on the neighborhood is valuable to any apartment hunt. Try to get your landlord’s perspective about any areas of concern. We also recommend exploring on your own, both by car and on foot. See if any useful places are close by, such as grocery stores.

    How Soon are You Looking to Fill the Unit?

    In most cases, you won’t be the only person viewing an apartment. Others have likely received a grand tour, and others may be waiting in line to see the place as well. Landlords might be screening you as much as you’re screening them.

    Landlords are also usually interested in starting a new lease as soon as the current one ends. One way to get noticed is to strike quickly: ask when they’d want you to move in. You should still weigh your options, but don’t procrastinate.

    Do I Need a Cosigner?

    People with rental history have a record that landlords can review. If this is your first time paying rent, they won’t know if they can trust you to make payments on time and consistently. Adding a cosigner to the contract can make it easier. Their signature promises that even if you can’t pay rent, someone else can pay for you.

    Many renters with no history may worry about background checks and credit checks. However, there are some landlords who won’t ask for them. While the answer will likely be a yes, it doesn’t hurt to have it on a list of first-time renter questions.

    What Payment Methods are Accepted?

    Rent payments can take a variety of forms. Before you make any assumptions, though, you should double-check what’s allowed. Each place will have its own policies. Some offer more payment method options than others.

    You might be able to set up a regular automatic withdrawal from your bank account. You might have to do it online. The landlord might accept checks or cards (warning: anyone who only takes cash is likely a scammer). There’s only one way to know for sure.

    What Furnishings & Appliances are Included?

    Preparing for the big move is a big task. It’s not just deciding what to take, but also figuring out what you need to get. Each apartment is different: some come fully furnished with appliances, while others only have a bed.

    Asking this question is important because the answer can impact your budget. It can even make or break your apartment options. Ask about beds and bedding, chairs, sofas, tables, kitchen appliances, TV sets and anything else that matters to you in a home.

    How Much Notice Do You Give Before You or a Representative Shows Up at the Property?

    An interesting agreement comes with living in an apartment. It’s your home, and you pay to stay there. But someone else owns it and covers many responsibilities related to it. Technically, they have at least some right to enter at any time for any reason.

    Even so, many building owners respect their tenants by giving them advance notice. Depending on the person and situation, you may have days or hours or minutes to prepare. We recommend asking how much notice they usually give. It could save you some major headaches.

    What’s Your Late Fee Policy?

    Accidents can happen. Paychecks can come late. You might have temporary money problems. Most apartment contracts provide some leeway for late rent payments. But they might charge a late fee.

    Given that it’s so common, there’s no problem with asking about late fee policies. You’ll want to know the terms just in case anything happens. You’ll also want to know the limits according to state law, so you can see if the fee is fair. Just try not to seem too eager, and don’t count on being able to do it often.

    What’s Your Subletting Policy?

    Subletting is when a renter temporarily moves out and lets someone else cover their lease. A landlord may refuse to rent to your candidate if they don’t meet their requirements.

    Even if you don’t plan to leave during your lease, you may still want to know your apartment’s subletting policy. Life may surprise you. Being aware can save you some time and trouble in looking for someone to take over.

    Know the Best Questions to Ask When Renting an Apartment

    Any of these questions to ask when renting an apartment can help decide your future home. Having so many factors to consider may seem intimidating at first. As you gather information, though, you may find that each new detail narrows down the options. Soon enough, a few apartments will rise above the rest. No matter which of them you pick, you benefit. Ask away.

    Renters Insurance from American Family Insurance

    Even while you’re still apartment-hunting, it’s never too early to start thinking about renters insurance. If you have any questions about that, feel free to contact an American Family Insurance agent. Once you’ve learned what we have to offer, you can get a quote online and get protection for your next home.

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    Woman sitting at table writing a home inventory for homeowners insurance.
    9 Steps to Create a Home Inventory for Insurance Claims

    Your home is more than a roof over your head. It’s where your dreams grow, your family thrives and memories are made. But the possessions you keep inside are important, too.

    Whether you’re renting an apartment or own your home, you’ve most likely got an insurance policy designed to protect your dwelling and the things inside. Should the unthinkable happen and you have to use that insurance policy, it’s important to have a plan in place. And a home inventory list is a great way to get started!

    We’ll walk you through how to create a home inventory so — in the event of the unexpected — you’ll be more prepared and have a streamlined recovery.

    What Is a Home Inventory?

    Quite simply, a home inventory is a complete list of all the items, especially valuables, in and around your home. The best home inventories include photos, descriptions and dollar values of each of your belongings. The more detail, the better! It’ll help you provide a comprehensive list to your agent of items lost in the event your home is damaged or destroyed, allowing you to get the most out of your coverage.

    When your describing the items in your list, remember that the more information, the better. Here’s a quick reference list of the type of information you should include in your home inventory list:

    • An in-depth description of the items. For example, rather than writing down “diamond ring,” be more descriptive, such as: “an emerald cut diamond ring, with white gold shank, accent stones and initials inscribed below the bridge.”
    • Make, model, and/or serial number of the items.
    • Date of purchase, receipts and photos.
    • Estimated replacement cost if you bought it today. Do note that the value of the items might be different today than it was when you first bought them. This is especially true with jewelry, and other valuables.
    • Appraisals at time of purchase. Especially if your items were appraised for insurance purposes.

    Why Do I Need a Home Inventory?

    Whether you’re a homeowner or a renter, everyone can benefit from a home inventory!

    If you ever have to make a claim, a home inventory is a great asset to have, especially after stressful events like theft, storm damage or a fire (take a look at how one renter used their home inventory after facing an apartment fire).

    When you make a claim, you typically submit information on everything that was lost — which can be difficult to do off the top of your head for all your possessions. Remembering to replace your TV or computer are no-brainers, but when it comes to remembering each piece of jewelry in your jewelry box, things tend to get overlooked. Having a personal property inventory will help, along with knowing how to properly insure your jewelry.

    When you have your home inventory checklist, you know exactly what needs to be replaced, and you’ll have peace of mind knowing your entire household is protected.

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    A row of houses in a neighborhood with storm clouds that will bring strong rain and roof leaks behind it.
    Reasons Why a Roof Leaks

    You’re admiring the rain from the comfort of your home when you notice a sound — the unmistakable drip of water dropping onto your floor. The first and hardest step is figuring out why your roof is leaking. And with these tips, you’ll find the culprit in no time!

    Here’s Why Your Roof Is Leaking

    The list of reasons why your roof is leaking may seem long, but don’t worry — when it comes to finding the leak and fixing it, the finding is the hardest part. And the good thing about these problems? They can all be fixed. Check out the list and see what’s troubling your roof:

    Your roof is old

    Roofs don’t last forever. Protecting your home and everything inside it from the elements comes with a cost. And with all that rain, snow, ice, wind and even sunlight wearing down your roof, it becomes more susceptible to leaks. Every roof will eventually need to be replaced, so learn more about how long your roof should last based on what it’s made of.