Desert Schools Federal Credit Union is a paid sponsor of Sonoran Living
Tips for Lowering Your Monthly Bills
Figuring out ways to lower your monthly bills can be a tricky process. Whether we need to cut more of the smaller luxury items like morning lattes, or consider downsizing our larger expenses, it can be a tricky process to identify what's going to make the most impact on our bottom lines. Experts at Desert Schools Federal Credit Union provide us with a few tips to better manage your monthly bills:
Where do you start?
It's recommended to jump-start your budget with a few easy choices or quick wins - try eliminating lesser purchases from your daily spending. By eliminating a $5 morning latte habit, you're already saving a whopping $100 a month! If you absolutely can't live without your morning coffee, try making it yourself. Another great way to save is to cut back on take-out or dining out. Making more meals at home is a great way to save and also bring family and friends together. The key is to shift your thinking and realize what you're gaining by cutting back a bit.
What about long-term budget efficiencies?
It's important to look at some of your larger bills such as your car payment. Most financial institutions like Desert Schools can help you by offering you lower rates and incentives to increase your savings and potentially provide money back on your loan. For example, Desert Schools offers members the "Auto Three-fi solution" which is a great way to lower your monthly bills. Its three-tiered approach will help lower your interest rate, give you up to five-hundred dollars in cash back and as an extra incentive, postpone your first payment for 90 days.
What about other large bills such as your mortgage?
Lowering your monthly mortgage payment by refinancing to a lower rate or extending your loan term can make a big difference in your finances. If you choose to refinance, you may also have the opportunity to make additional changes to your loan term at the same time. Depending on your circumstances, in a rising interest rate environment, if you have a variable-rate mortgage you may be able to switch to a fixed-rate mortgage to achieve a consistent, known monthly payment. Additionally, as home values have been rising, you may now have the opportunity to borrow on the equity in your home to pay off other debts and expenses. You can do this with both a mortgage finance or even a home equity loan. This tactic also simplifies your budget, providing you with one payment versus three or four.
Just like anything else, lowering your monthly bills is a process that will not happen overnight. It's important to start incorporating those small spending changes month-to-month to improve your finances. Consider speaking to your local credit union or bank representative, or a financial advisor to identify additional ways to save money.
Desert Schools Federal Credit Union
148 N. 48th Street Phoenix, AZ 85034
(602) 433-7000
www.desertschools.org
Desert Schools Federal Credit Union is a paid sponsor of Sonoran Living
