A mortgage is the biggest debt most people carry. While there may not be much you can do to get rid of your mortgage right away, there are many options to speed things up and become mortgage-free quicker.
In addition, there are several ways to save thousands of dollars around your home this year.
Table of Contents
- 1. Cut Your Water bill.
- 2. Become A Landlord
- 3. Pay Off Your Mortgage faster.
- 4. Get A Competitive Mortgage rate.
- 5. Choose a Variable mortgage.
- 6. Decline Mortgage Life insurance.
- 7. Prepare A Bigger Down payment.
- 8. Replace Incandescent bulbs.
- 9. Time Outside the Lights
- 10. Upgrade To Energy-Efficient Appliances
- 11. Use A Smart Power Strip
- 12. Summer-Proof Your Home
- 13. Winter-Proof Your Home
- 14. Lower Water Temperature
- 15. Dress in layers.
- 16. Use A Programmable Thermostat
- 17. DIY Furnace Service
- 18. DIY Air Conditioner Service
- 19. Plant A Garden
- 20. Sell Your Clutter
- 21. Cut or Trim Down the cable
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1. Cut Your Water bill.
One of the easiest ways to save money around your home is by reducing your water bill. Simple steps like installing low-flow fixtures can significantly decrease water usage without sacrificing convenience. Additionally, running full loads in the dishwasher and washing machine helps optimize water consumption. Embrace water-saving habits such as taking shorter showers and using rainwater for gardening. These small changes can lead to substantial savings on your water bill over time.
2. Become A Landlord
If you have an extra room in your home, consider becoming a landlord and renting it out. This can be a great source of additional income, helping to offset various home-related costs like property taxes and utilities. By utilizing a spare room, you can make the most of your property and create a revenue stream that contributes to your financial goals.
3. Pay Off Your Mortgage faster.
Accelerating your mortgage payments is an effective way to become mortgage-free quicker. Consider switching to accelerated biweekly payments instead of monthly payments. Making occasional lump-sum payments can also have a significant impact on reducing your mortgage debt. Additionally, rounding up your regular payments to the nearest hundred or thousand can accelerate your progress toward being mortgage-free.
4. Get A Competitive Mortgage rate.
When it comes to mortgages, shopping around for the best interest rate is crucial. Don’t settle for the first offer from your traditional bank; explore different lenders and mortgage products. Even a small difference in interest rates can translate into substantial savings over the life of your mortgage. So invest time and effort into finding a competitive mortgage rate that suits your financial situation.
5. Choose a Variable mortgage.
Choosing between a variable-rate and a fixed-rate mortgage can be a critical decision. Research suggests that a variable mortgage can save you money in the long term. Variable rates tend to be lower initially and can lead to significant savings if interest rates remain stable or decrease. However, there is an element of risk involved, as rates may fluctuate. Consult with a mortgage expert to understand which option aligns better with your financial goals and risk tolerance.
6. Decline Mortgage Life insurance.
Mortgage life insurance might seem like a good idea to protect your loved ones, but it can be expensive and may offer a declining benefit. Consider opting for standard life and disability insurance instead, which can be more cost-effective and provide broader coverage beyond your mortgage. This way, you can protect your family’s financial future without overspending on premiums.
7. Prepare A Bigger Down payment.
Saving for a more substantial down payment on your new home can have several advantages. By putting down 20% or more, you can avoid additional costs like Private Mortgage Insurance (PMI) in the U.S. or CMHC mortgage insurance in Canada. These insurance policies are designed to protect lenders if you default on your loan, but they can add thousands of dollars to your mortgage. Planning for a bigger down payment allows you to save on these additional expenses.
8. Replace Incandescent bulbs.
Traditional incandescent bulbs consume more electricity and have a shorter lifespan compared to energy-efficient alternatives like CFL or LED bulbs. By switching to these newer options, you can significantly cut your energy bill and reduce the frequency of bulb replacements. LEDs, in particular, use 75% less energy than incandescent bulbs and can last for decades, making them a cost-effective and environmentally friendly choice.
9. Time Outside the Lights
Leaving outdoor lights on throughout the night can lead to unnecessary energy consumption. Installing timers on outdoor lights allows you to control when they turn on and off. This simple adjustment ensures that you’re not wasting electricity during daylight hours or when the lights aren’t needed, leading to potential savings on your energy bill.
10. Upgrade To Energy-Efficient Appliances
Older appliances are notorious energy hogs, consuming more electricity than their modern, energy-efficient counterparts. Consider replacing your outdated appliances with ENERGY STAR®-rated models. These appliances are designed to use less energy, resulting in substantial savings on your energy bill over time. While the upfront cost of purchasing new appliances may seem high, the long-term savings make it a worthwhile investment.
11. Use A Smart Power Strip
Many electronic devices and appliances continue to consume electricity even when turned off, a phenomenon known as “phantom loads” or “standby power.” A smart power strip can automatically cut off power to these devices when they’re not in use, preventing energy waste. By using a smart power strip or simply unplugging electronics when not in use, you can save up to $200 per year on your energy bill.
12. Summer-Proof Your Home
Summer can lead to increased energy consumption due to air conditioning use. However, there are simple strategies to keep your home cool without overspending on energy bills. Close curtains and blinds during the hottest parts of the day to prevent radiant heat from warming up your home. Utilise fans to increase ventilation, creating a comfortable indoor environment without relying solely on air conditioning. Also, set your thermostat at a temperature that ensures comfort without wasting excessive energy.
13. Winter-Proof Your Home
Winter often comes with higher heating costs. To keep your home warm and energy-efficient, inspect for draughts and seal them with weatherstripping and caulk. Properly insulate your basement, attic, and other crawl spaces to prevent heat loss. These measures can significantly reduce your energy consumption, leading to noticeable savings on your winter energy bills.
14. Lower Water Temperature
Lowering the temperature setting on your water heater can result in cost savings. The default setting is usually around 140 °F (60 °C), but reducing it to 120 °F (48.9 °C) will not affect functionality or comfort. This simple adjustment can save you up to 10% on water heating costs without compromising your hot water needs.
15. Dress in layers.
In both summer and winter, dressing appropriately indoors can help you save on energy costs. During hot summer days, wear lighter clothing and avoid cranking up the air conditioner excessively. In colder months, add layers of clothing to stay warm and reduce the need for high thermostat settings. Dressing in layers allows you to adjust your comfort level without relying solely on heating and cooling systems, helping you save on energy bills.
16. Use A Programmable Thermostat
A programmable thermostat is a valuable tool for optimizing your home’s heating and cooling. You can set different temperature schedules based on your daily routines. For example, during work hours or when you’re away from home, the thermostat can lower the temperature to save energy. Before you return, it can adjust the temperature to ensure comfort. This intelligent control over your home’s temperature can lead to significant energy savings over time.
17. DIY Furnace Service
Regular maintenance of your furnace is essential to ensuring optimal performance and efficiency. Simple tasks like replacing the furnace filter regularly and cleaning debris from registers and surrounding areas can keep your furnace running smoothly. Additionally, ensuring that intake and exhaust pipes are clear prevents blockages that could affect the furnace’s efficiency. By performing these DIY maintenance tasks, you can extend the lifespan of your furnace and avoid costly repair or replacement expenses.
18. DIY Air Conditioner Service
Similar to the furnace, your air conditioner benefits from regular maintenance. Keep the outdoor unit clear of debris and ensure that airflow is not obstructed. Insulate pipes to prevent energy loss and straighten any bent fins on the unit’s exterior. Before winter, remember to turn off the air conditioner to avoid potential damage from freezing temperatures. By taking care of your air conditioner, you can prolong its lifespan and reduce the need for expensive repairs.
19. Plant A Garden
Growing your own vegetables and herbs can save you money on groceries. A small backyard garden or even a few pots on a balcony can yield fresh produce, reducing your reliance on store-bought items. Not only is gardening a cost-effective way to eat healthier, but it also offers the satisfaction of nurturing and harvesting your food.
20. Sell Your Clutter
As time goes on, it’s common for households to accumulate clutter and items that are no longer used. Continuously decluttering and selling or donating unnecessary items can free up space in your home and potentially earn you some extra cash. Whether through garage sales, online platforms, or consignment shops, selling your clutter can be a simple way to make money while keeping your living spaces tidy and organized.
21. Cut or Trim Down the cable
Traditional cable subscriptions can be expensive, with many channels that you may not even watch. Consider exploring more affordable alternatives for entertainment, such as streaming services like Netflix, Hulu, Amazon Prime Videos, Sling TV, or HBO Now. These platforms offer a wide range of content at a fraction of the cost of traditional cable. By cutting or trimming down your cable package, you can save a significant amount on your monthly expenses.
Conclusion
Implementing smart ways to save money around your home not only reduces expenses but also contributes to a more sustainable and efficient lifestyle. Cutting your water bill, becoming a landlord, paying off your mortgage faster, and securing a competitive mortgage rate are all steps toward financial freedom. Likewise, adopting energy-efficient practices, decluttering, and exploring alternative entertainment options lead to long-term savings and a reduced ecological footprint. By making these simple yet effective changes, you can enjoy a more economical and environmentally conscious home life.
FAQs
- How much can I save by cutting my water bill? By adopting water-saving habits and using efficient fixtures, you can save a few hundred dollars or more per year on your water bill.
- Is becoming a landlord a good idea? Renting out a spare room can be financially rewarding, helping offset various home-related costs and contributing to your income.
- How can I pay off my mortgage faster? Accelerating your mortgage payments, making lump-sum payments, and rounding up regular payments can shorten your mortgage term and save on interest.
- Should I choose a variable- or fixed-rate mortgage? Research shows that a variable mortgage can lead to long-term savings, but it’s essential to consider your risk tolerance and consult with a mortgage expert.
- Why should I upgrade to energy-efficient appliances? ENERGY STAR®-rated appliances consume less energy, resulting in substantial savings on your energy bills and reducing your environmental impact.
