Goal: Review your housing costs and discover clever ways to trim the fat. Update your budget to reflect this new spending plan. Remember, every dollar saved here fuels your path to FI faster!
Why it Matters: Reaching FI as quickly as possible will require more money to apply towards saving, investing, and paying off debt. One of the easiest ways to free up money is to optimize your budget.
Completion Time: ~10-mins
36 Strategies to Reduce Your Housing Expenses: After reading this list, take a look at your previous housing spending and identify areas that you can improve.
Mortgage/Rent
Negotiate rent when renewing a lease. Many landlords tend to raise rents when you renew a lease, but this is also an opportunity for you to negotiate down the rent. If you’re in a renter’s market, you may have a lot of power to negotiate with.
Offer to pay rent upfront for a discount. Some landlords will give you a discounted rent if you pay for multiple months up front.
Rent out space on your property. A hack most people don't know is in many areas, you can actually rent out space on your property for people to camp, park, and more. If you have an unused garage or shed, you can also rent it out as storage.
Consider signing a longer lease. If you think you’re going to stay in an area for an extended period, consider asking your landlord for an extended lease at a discounted rate. Most landlords are flexible with longer, reliable tenants.
Rent an extra room. If you own your own home, consider renting out an extra room to a friend or on Airbnb. If you’re renting a house, consider subleasing an extra room with the landlord’s approval.
Offer to fix up the rental yourself. If you’re interested in renting a place that needs some work done, offer to fix it up yourself for a discounted rent.
Move to a new home. While this can be a large move for most people (pun intended), it can also make the largest impact on your monthly expenses. You can use WizeFi’s what-if scenarios to see how moving would impact your FI date.
Offer to work for the landlord. Consider working for your landlord part-time in exchange for a lower rent.
Search for rentals in the fall/winter. Most people tend to move in the summer which can drive up rent prices.
Cleaning
Buy house supplies in bulk. Shop around to see which supplier offers the best deal in bulk. Compare the individual unit price of these bulk items against cheaper options to ensure you’re not overpaying for bulk.
DIY yard care. Mowing the lawn and caring for the landscape yourself instead of hiring others can make a meaningful difference in your monthly expenses.
DIY home repairs. Many smaller home repairs can be addressed with some cheap supplies and YouTube tutorials.
Electric
Set limits on your thermostat. Cutting back on heating and air conditioning is one of the most effective ways to lower your electricity bill.
Upgrade your light bulbs to LEDs. This applies for any type of energy efficient light source. In most cases, the energy efficiency will pay for the additional cost.
Change your electronics’ settings to power saving mode. Most smart electronics like computers, TVs, and game systems can be configured to maximize their power saving mode.
Air dry your clothes. Cutting back on using a dryer can also lower your electricity bill.
Gas
Change your furnace air filter. Depending on your filter size, you may need to change your filter every 3-12 months. Neglecting to change the filter can cause your furnace to run less efficiently which can use more gas.
Add cheap insulation to retain heat. One way to use less gas is to improve the insulation at your place.
Close air ducts for unused rooms. Circulating air in these rooms can be a waste of energy and money.
Reduce your water temperature. If you find yourself thinking that the shower or faucet can sometimes get too hot, you can lower the temperature to save heat.
Water
Take shorter showers. Consider setting a timer to limit your shower time. If you listen to music in the shower, you can also count the number of songs to keep track of time.
Run your washing machine and dishwasher on a lighter setting. Be careful if your machines are too efficient on these settings. This may require you to run the load twice which can use more water than a single wash.
Add a water bottle to your toilet tank. This tip should displace the remaining water in the tank and result in less water used per flush.
Reduce your sprinkler use. Limiting the amount of water in your lawn can be a great temporary solution to help reduce your water consumption.
Internet/Cable
Cancel your cable bill. There are so many other free and cheap alternatives to cable such as online streaming services. Some streaming platforms are even free with ads.
Share subscription streaming services. Find a group of people who are each willing to pay for a subscription service and share accounts. Certain banks and services will also offer streaming services for free as a membership perk.
Negotiate your internet bill. Many internet providers are willing to provide a discounted rate to prevent you from leaving.
Buy your own modem. Instead of renting a modem from your internet provider, buy your own.
Optimize your internet speed for your needs. Some people have higher internet speed requirements than others. It’s important for you to assess your internet needs and pick a plan that is best suited for your situation.
Phone
Wait for deals to upgrade your phone. Many service providers will offer great seasonal promotions to existing and new customers. These deals may require trading in your existing phone or switch providers.
Buy a used phone. If you can’t wait to upgrade your phone during a sale, consider buying a used phone.
Consider a prepaid service provider. If you’re not interested in having a lot of options, consider changing to a cheaper plan with minimum features.
Consider negotiating your phone bill. Many service providers are willing to provide a discounted rate to prevent you from leaving. Some providers may call this a “loyalty” discount.
Cancel your landline. This might go without saying, but if you still have a landline and aren’t using it, cancel the monthly phone bill.
Consider an “off brand” service provider. Most major phone providers offer service to smaller providers at a discount. You can research which cell service towers provide support to the areas you visit most frequently and switch over.
Consider sticking to a family plan. Service providers will sometimes give lower rates and better promotions to customers with a longer history. Using a family plan can allow you to share these benefits with multiple people.
Your Turn: Now it’s time to modify your housing budget and free up more FI dollars to accelerate your plan. To view your spending and modify your budget in WizeFi, simply follow this tutorial.
Once you've reduced your housing expenses, make sure to apply those extra financial independence dollars towards your 4-step plan.
In this example, you can go the 4-step plan and apply an extra $100 towards your Emergency Savings each month.
This one change has allowed this person to reach financial independence over 2 years sooner!