Guide: How to Save Money on Monthly Bills

Difficulty: Easy Time Required: 3–5 hours for initial review and changes

Most people waste $200–600 monthly on bills they could reduce without affecting their quality of life. Hidden fees, services you don't use, plans you've outgrown, and failure to negotiate all drain your bank account unnecessarily. This guide walks you through systematically reviewing every monthly expense, cutting waste, negotiating better rates, and putting that money toward goals that matter to you instead.

What You'll Need

Materials:

• Three months of bank and credit card statements
• Current bills for all services (utilities, phone, internet, insurance, subscriptions)
• Calculator or spreadsheet for tracking savings
• Phone for calling service providers
• List of all automatic payments and subscriptions

Prerequisites:

• Access to all financial accounts and statements
• Account numbers and login credentials for all services
• 3–5 hours spread over a week to make calls and changes
• Willingness to negotiate and ask for discounts
• List of all recurring monthly expenses

Step-by-Step Instructions

Step 1: List every single monthly recurring expense

Review 3 months of bank and credit card statements. Write down every recurring charge:

• Rent/mortgage
• Utilities (electric, gas, water, trash)
• Phone
• Internet
• Streaming services (Netflix, Hulu, Disney+, etc.)
• Gym membership
• Subscriptions (meal kits, software, apps)
• Insurance (auto, health, life, renters/home)
• Loan payments
• Miscellaneous memberships Include annual fees divided by 12. This complete picture shows where your money actually goes.

Step 2: Categorize expenses as essential vs. reducible vs. eliminable

• Essential expenses you must keep: housing, utilities, insurance, debt payments

• Reducible expenses you need but can lower:

  • Phone plans
  • Internet
  • Insurance (shop for better rates)
  • Utilities (reduce usage)

• Eliminable expenses that are wants, not needs:

  • Unused gym memberships
  • Multiple streaming services
  • Subscription boxes
  • Premium cable channels Focus first on eliminating waste, then reducing essential services.

Step 3: Audit and cancel unused subscriptions immediately

Most people pay for 2–4 subscriptions they've forgotten about. Check for:

• Streaming services you haven't used in 2+ months
• Gym memberships when you haven't gone in months
• Apps with auto-renewing subscriptions
• Meal kits you stopped using
• Wine clubs or subscription boxes
• Premium versions of apps when free versions suffice Cancel immediately—even $10–15 monthly subscriptions cost $120–180 annually.

Step 4: Negotiate lower rates on internet and phone service

Call your internet and phone providers. Say:

• "I'm reviewing my budget and your service costs more than competitors. What discounts or promotions can you offer to keep me as a customer?" If they refuse, say:
• "I'd like to cancel service" You’ll be transferred to the retention department, who can offer discounts. Most people get $10–30 monthly discounts just by asking.

Step 5: Shop and switch to cheaper cell phone and internet plans

• Research competitors' rates for identical service
• MVNOs (Mint Mobile, Visible, Cricket) offer cell service for $15–30/month vs. $60–80 with major carriers using the same networks
• Internet-only plans cost $40–60 vs. $90–120 for bundles with cable you don't watch Switching saves $30–60 monthly ($360–720 annually) with zero service difference. Use your research to negotiate or actually switch.

Step 6: Bundle or unbundle services strategically

• Bundling home and auto insurance can save 15–25% ($200–400 annually)
• Bundling cable+internet may cost more than internet-only plus separate streaming services
• Calculate both scenarios: bundled price vs. separate prices
• Drop cable packages with channels you never watch—cutting from 300 channels to 50 might save $40–60 monthly

Step 7: Reduce utility bills through usage changes

Utilities are variable costs you control:

• Adjust thermostat 2–3 degrees (saves 10–15% on heating/cooling or $20–40 monthly)
• Switch to LED bulbs throughout house (saves $10–15 monthly)
• Fix leaky faucets (saves 10–20% on water bills)
• Unplug devices and chargers when not in use (saves $5–15 monthly on "phantom" electricity use)
• Wash clothes in cold water and air-dry when possible These small changes compound to $50–100 monthly savings.

Step 8: Review and adjust insurance coverage and rates

• Shop auto insurance annually—loyalty doesn’t pay, new customer discounts do
• Request quotes from 5–7 companies; most people save $300–600 annually by switching
• Increase deductibles on auto ($500 to $1,000 saves $150–300/year) if you have emergency savings
• Remove collision/comprehensive on cars worth under $3,000 (saves $300–600/year)
• Bundle home and auto for 15–25% discounts
• Drop unnecessary coverage like rental car reimbursement if you rarely need it

Step 9: Share or rotate streaming services

• Instead of keeping 4–5 streaming services year-round ($60–80/month), rotate them
• Keep one or two, cancel the rest—re-subscribe only when needed
• Share accounts with family (within terms of service)—many services allow 2–4 simultaneous streams This can reduce streaming costs from $60–80 to $15–30 monthly.

Step 10: Track your total monthly savings and redirect it

• Add up all reductions and cancellations

  • $35 on phone
  • $30 on internet
  • $50 on unused subscriptions
  • $40 on streaming rotation
  • $45 on utilities

• That’s $200/month saved Don't let this money disappear into general spending. Immediately set up an automatic transfer of $200 monthly to a savings, debt payment, or investment account. Seeing the impact motivates you to maintain these changes.

Common Mistakes to Avoid

• Not negotiating because you assume the answer is no: Companies have retention departments whose entire job is offering discounts to prevent cancellations. Asking costs you nothing—worst case they say no and you're in the same position. Best case you save $10–50 monthly with a 5-minute phone call. Most people never ask and overpay for years, losing thousands unnecessarily.
• Paying for convenience you don't actually need: Premium cable channels ($50/month), unlimited phone data when you use 3GB ($30/month savings), fastest internet tier when you stream casually ($20/month savings), extended warranties on appliances (expensive and rarely worth it). Convenience features marketed as "essential" often aren't. Test cheaper options—if you notice no difference, keep the savings.
• Cutting variable expenses but not actually reducing usage: Switching to a cheaper electric plan doesn't save money if you increase usage to compensate. Canceling the gym membership doesn't save money if you buy expensive equipment or pay for classes instead. The savings come from actually changing behavior—using less electricity, working out at home with free resources, making coffee instead of buying it.
• Letting savings disappear into general spending: Cutting $200 in monthly bills doesn't help if you unconsciously spend that $200 elsewhere. Track where the money goes for 2–3 months after cutting bills. If your checking account balance stays the same or you're not building savings, the money is leaking somewhere. Immediately redirect savings to a specific goal so they actually benefit you.
• Ignoring small recurring charges: A $7.99 subscription doesn't feel significant, so people ignore it. But $8 × 12 months = $96 annually. If you have 5–6 of these small subscriptions you barely use, that's $480–576 per year wasted. Small recurring charges are invisible budget killers because they seem too small to matter individually but compound into serious money collectively.

Pro Tips

• Use the 90-day test for subscriptions: Before canceling something you occasionally use, remove your payment method and see if you miss it over 90 days. Most subscriptions you won't even remember canceling. The few you genuinely miss can be reactivated. This prevents canceling something you actually value while eliminating waste you won't miss.
• Ask about retention or loyalty discounts annually: Even if you're not planning to cancel, call services once per year and say "I've been a customer for X years. What loyalty discounts or promotions can you offer?" Many companies have unadvertised discounts for long-term customers—you just have to ask. This 10-minute call per service can save $100–300 annually.
• Create a "bills review" calendar reminder: Set a calendar reminder every January to review all recurring bills. This annual audit catches subscription creep (new services added throughout the year), identifies expired promotional rates that increased, and forces you to question if you still need each service. This habit prevents you from ever going years overpaying for services you don't need or use.
• Use bill negotiation services for hands-off savings: Services like Truebill, Trim, or Billshark review your recurring bills and negotiate lower rates on your behalf. They take 30–50% of savings they achieve, but you do zero work. If negotiating makes you uncomfortable, these services handle it for you and still save you money—just not as much as doing it yourself.
• Combine related changes for maximum impact: Don’t just cut cable—cut cable ($80/month), drop down to cheaper internet since you’re not streaming 4K ($20/month savings), and rotate streaming services ($30/month savings). Combined, that’s $130/month or $1,560 annually. Stacking multiple small changes creates dramatic total impact that changing just one thing doesn’t achieve.

Related Skills

• How to Create a Monthly Budget
• How to Build an Emergency Fund
• How to Choose a Cell Phone Plan
• How to Shop for Auto Insurance