As quick as we’re able to earn money, there always seems to be an expense that pops up with it. Life is full of areas that we’ll spend our money, whether it’s a fixed expense that is unavoidable, or somewhere we choose to spend our money. According to 2019 Statista data, American households spent about $63,036 on their household expenses. There are numerous unavoidable expenses in your lifetime, and these can be incredibly costly. However, you can save significant cash on many of life’s essential expenses with some important financial tips. A little planning, a little shopping around and a little frugality can go a long way!

Buying a home

It is no secret that purchasing a house is the single biggest purchase that people will make in their entire life. It’s something that many young professionals dream of, and work towards being able to purchase. It is always prudent to find some great ways to cut down the costs of buying a home so that you can save money in the long run. For example, there are lots of mortgage loan options depending on your unique situation. Thankfully, there are numerous affordable home mortgages you can explore, including FHA, VA, and USDA mortgage loans, so you can purchase your home with a loan that works for you. If you’re able to get a better rate, put less down or get a quicker guarantee, it can be a win-win for you!

In addition, I recommend working with a realtor when purchasing your home since their expertise and excellent knowledge of the housing market can get you great deals. A knowledgeable realtor can help you find a great house and one that you won’t overpay for. They’re also probably better at negotiating deals than you are! Finally, putting more money down can not only score you a lower interest rate, it’ll also be less interest paid over the life of the loan!

Funerals

Funeral costs can range between $7000 to $12,000, depending on a wide range of factors. If you live to a ripe old age, there’s a great chance you will be tasked with bearing the costs of at least one funeral. Paying for funerals can be a difficult period because, on the one hand, you want to send off your relatives in the best way possible. On the other hand, you want to avoid the high costs that funeral homes charge and want the entire process to pass so you can focus on mourning. As such, you can save on funeral costs and the environment simultaneously by declining embalming. In addition, you can opt for cremation over burial, cutting down your funeral budget. Also, choose a basic casket instead of fancier options like ‘gasketed’ or protective caskets since these are pretty expensive. Finally, you can also select an accessible venue like a church for your funeral service instead of paying to use a funeral home’s premises.

Utility Bills

Utilities are undoubtedly necessary to make life comfortable and safe. According to the federal government’s Energy Star program, the average American household spends over $2,000 on utilities every year. Thankfully, you can rely on several ways to lower your water, broadband, electricity, cable, gas, and other bills. For example, consider energy-saving solutions like solar panels to support your home’s energy needs. Although these panels are a huge expense up front, they can save you a fortune in the long run. Also, you can invest in low-flow toilets, insulation, and energy-saving light bulbs to lower your monthly utility bills. It’s also smart to unplug electronics when you’re not using them, and of course turn the lights off when you’re not in the room! Finally, buy high-quality, energy-efficient appliances since they can lower your utility bills significantly.

Summary

It’s impossible to avoid all expenses in life, and there are certain ones that you’ll always have with you! A little planning, shopping around and just being aware of options can help save you money in the long run!

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