6 Painless Ways to Cut Costs This Year

When money is tight, the first thing you should do is look for ways to reduce your expenses. However, cutting back on your spending doesn’t have to be stressful. There are many ways to cut costs without affecting your quality of life. Here are six painless ways to cut costs and keep your spending in check this year. 

1. Rethink Your Insurance

There’s no way around it — you need insurance to protect yourself in the event of an emergency. However, many people have multiple insurance policies, including home, auto, health, and life insurance. Those monthly bills can quickly add up, and you might be paying more than you need to. 

It’s easy to choose the first option available to you when searching for an insurance policy. However, if you do this, you’ll probably end up with unnecessarily high rates. Instead, get an auto, life, and home insurance quote from multiple providers. Shop around to see who can offer you the best value. For health insurance, you can compare plans on your state’s marketplace. You can also talk to your employer to see if they have affordable plans available as part of their benefits package. 

2. Try a Cash-Back Credit Card

If you already have good credit, make the most of it with a cash-back credit card. These cards will give you very small amounts of money back on the purchases you make every day. This can add up to significant savings over the course of the month, without actually changing your spending habits at all. 

The best way to use these cards is to shop for your necessary monthly expenses, like groceries. Don’t use them as an excuse for unnecessary spending. If possible, look for a credit card that also offers reward points. These are points that you earn as you spend that are redeemable for specific items and services. Credit card reward points are particularly helpful for defraying unexpected travel costs. When used carefully, these credit cards can be a very helpful financial tool.  

3. Take Advantage of Free Entertainment Options

Entertainment doesn’t have to cost money. Many people spend money on entertainment out of habit, but there are plenty of free resources you can use instead. Start by heading to your local library to check out books, movies, and music. Many libraries partner with apps like Libby and Hoopla so you can download this content on your phone. Some library systems even have free passes to museums and other local attractions. 

There are also many free online entertainment options to check out. Consider switching your paid streaming services to free ones like Tubi and Pluto TV. You can also cut back on video game costs by looking for indie titles instead of blockbuster hits. Indie games are often just as entertaining as larger titles, but they cost a fraction of the price. 

4. Negotiate Your Cable and Internet Bills

You might be paying more for cable and internet than you need to. Do some research to see what competitors in your area are offering for similar packages. Then, call your provider and politely negotiate with them. Competition for customers among cable and internet providers is very high. They won’t want to lose your business, so they’ll likely be happy to negotiate a better price for you. 

Additionally, look for deals and reimbursements you may qualify for. For example, many state and local governments offer internet subsidies for low-income residents. If a new internet provider enters your area, they might also offer an introductory deal to win new business. If you qualify for one of these deals, it may be worthwhile to switch to a new provider. 

5. Use Apps to Find Coupon Codes

Shopping online is already a way to save money in itself, as you can easily compare products to get the cheapest price. However, you can save even more money by being sale-savvy and using coupon codes. 

No matter what you’re buying, there’s a good chance there’s already a coupon code available for it. Apps like Honey and RetailMeNot can help you find and apply coupon codes when you’re shopping online. These apps will also notify you of upcoming sales to take advantage of and even offer exclusive deals. Honey also allows you to track products you’re interested in buying, and you’ll receive notifications when the price drops.  

6. Find More Affordable Prescriptions

While prescriptions are necessary for your health, they can also get expensive quickly. Luckily, there are many ways to cut back on your prescription costs. Start by making sure you’re taking the generic option if it’s available. Generic drugs provide the same benefits as name-brand drugs, but at a much lower cost. Next, check to see if your insurance provider works with a preferred pharmacy in your area. You may be able to save simply by switching your pharmacy. 

Apps like GoodRx, RxSavings, and SingleCare can all help you find coupons for your prescriptions as well. These can be particularly helpful if there’s a gap in your insurance coverage. Another alternative is to order your prescriptions online. Services like ScriptCo and Cost Plus Drug Company can offer more affordable prices, although they aren’t available for all drugs. Finally, talk to your pharmacist if you are struggling to afford your prescriptions. They may have programs in place to help reduce costs. 

Final Thoughts

Cutting back on your spending doesn’t have to be difficult. You don’t have to get rid of the things you love or make massive lifestyle changes to stay on budget. Instead, look for more affordable alternatives to things you already use. With a little sleuthing, chances are you’ll be able to save some money.