How to Trim Your Fixed Expenses

Cut your budget down by looking at fixed expenses first. Fixed expenses, which include things like mortgage payments, insurance premiums, and subscription payments, are easy to budget for since they remain generally constant throughout the year. While people tend to think there’s no way to lower fixed expenses, with a bit of effort and research, most of these costs can be reduced.

1. Consider a Refinance

Mortgage payments take the biggest bite out of most monthly budgets. Fortunately, you can lower those payments by refinancing your mortgage to a lower interest rate. The refinance will cost you, but you can roll the closing costs and other fees into your refinance loan. Plus, the money you save each month should more than offset these costs. A refinance is an especially smart move to make in a falling-rates environment or if your credit has improved a lot since you originally opened your mortgage.

2. Lower Your Property Taxes

Young family play with chalk Taxes may be inevitable, but they aren’t set in stone. You may be able to lower your property taxes by challenging your town’s assessment of your home. Each town will have its own guidelines to follow for this process, but ultimately, you'll agree to have your home reappraised in hopes of proving its value is less than the town’s assessment. This move could drastically lower your property tax bill; however, if you have made improvements to your home, it may be appraised at a higher value, which could raise your taxes.

3. Lower Your Rent

This one will be tough for some people, especially if you live in an apartment that is managed by a corporate leasing office. However, if you have a landlord that you personally know, you might be surprised that you can find ways to get a discount on your rent. You might ask if you can help maintain the landscaping around your apartment or help with projects like repainting worn exterior walls in exchange for a reduced rental rate.

4. Change Your Auto Insurance Policy

That little gecko who loves disrupting your TV shows, may actually have a point: You could be overpaying for your auto insurance policy. If you’ve had the same policy for several years, to get a lower quote:

Speak to a company representative about lowering your monthly premiums.
Highlight your loyalty and excellent driving record.
Consider increasing your deductible to net a lower monthly premium.

Man standing by car on mountaintop If your insurance company is not willing to work with you, it might be time to shop around for a provider that will. Credit Union of Denver has partnered with TruStage Auto and Life Insurance to offer our members coverage options for your vehicles and your family's well-being. For questions and for a free quote via Liberty Mutual, contact Rebekah Wright at 616∙350∙3441.

5. Consolidate Your Debts

If you have a number of outstanding debts, multiple credit cards open, and high interest rates, your minimum monthly payments can be a serious drain on your budget. If this sounds familiar, you might want to consider a balance transfer. This entails opening a new, no or low interest credit card, and transferring all of your debts to this account. Going forward, you will only have one debt payment to make each month. Plus, the lower interest rate means you can make a more serious dent in paying down that debt!

Check out Credit Union of Denver’s current balance transfer offer. 4.99% APR on transferred balances for 12 months from transfer date.

6. Renegotiate Your Cell Phone Plan

When it comes down to it, we pay a lot for our cell phones, not always for the phones themselves, but for the monthly plan that comes with them.

Check your statement and see what you’re paying for.
Your bill may include things you are no longer using, decide what you really need.
Research prices from other providers, and when you find the best rate, call up that company and see if they can guarantee that rate while waiving cancellation penalty fees from your current provider.
But first call your current provider and see if they can match the offer, in many cases they will because they don’t want to lose you as a customer.

Happy woman smiles at her cell phone While you’re weighing your options, as a C∙U∙D member you have access to LoveMyCreditUnion benefits, including deals on your cell phone plan. Switch to Xfinity or Spectrum mobile and get cash rewards. With Xfinity Mobile Switch and save up to $400/yr. or switch and save up to 60% with Spectrum Mobile.

7. Cut Out Subscriptions You Don’t Need

Another fixed expense most people automatically pay each month are subscriptions. Take some time to review your monthly subscriptions and weed out those you don’t really need. We’ve listed a couple of the most underused monthly payments below:

Gym memberships: It may be cheaper to just pay for the classes you attend instead of a full membership. If you have a favorite workout machine at the gym, consider purchasing it to use at home for a one-time cost that lets you to drop your gym membership. On the other hand, if you need to use certain exercise machines only available in a gym, look around for discount coupons available that can cut your monthly gym costs in half.

Cable: Even if there are no competitors in your area, you can still use leverage you have as a loyal customer to reduce your rate. Today there are so many alternative ways to get TV shows and other entertainment online. Call up your cable company and tell them you are thinking about switching. See if you can get a discount or if they can take certain charges off your monthly bill. If you don’t want to cut out cable entirely, consider downgrading to a cheaper plan.

Alternatively, why still pay for cable when you can stream your shows for less through services like Netflix and Hulu. Or even for free through platforms like Pluto TV, Crackle, Amazon Freevee, and more.

Your fixed monthly expenses are actually not as “fixed” as you may have thought. By taking a careful look at some of these costs, you can free up more of your monthly income for the things that really matter and get you on your way toward achieving your financial goals.