Español 
If you feel like your monthly payments are drowning you, you're not alone. Many people in the United States struggle to cover their fixed expenses, especially as debt and living costs continue to rise. But there's good news: with a few strategic adjustments, you can reduce your monthly payments and freeing up money for savings or investment on what really matters.
Here I share with you practical and easy-to-apply tips to reduce your fixed expenses without affecting your quality of life.
1. Renegotiate the interest rates of your debts.
Credit cards and personal loans usually have high interest rateswhich makes your monthly payments higher than they need to be. To reduce these payments, you can:
✔ Call your bank and negotiate a better rate.. Often, if you have a history of on-time payments, lenders can offer you a lower interest rate.
✔ Transfer your balance to a card with 0% introductory interest rate. Some cards offer 0% APR for 12 to 18 months. This gives you time to pay without interest eating up your money.
✔ Refinance a personal loan or a car loan. If you have a loan with a high rate, look for options to refinance it with a better interest rate.
Example: If you pay $300 in monthly interest on a card with a 22% APR and you manage to lower that rate to 10%, you could reduce your payment to $150 or less.
2. Review and adjust your subscriptions
Streaming services, gyms and memberships can add up to more than you think. Make a list of all the services you pay for and ask yourself if you really need them.
✔ Cancel subscriptions that you do not use frequently.
✔ Switch to family or shared plans. Services such as Netflix, Spotify and Amazon Prime allow you to share accounts and reduce costs.
✔ Negotiate with your Internet or cable provider. Call and ask for promotions or discounts.
Example: If you have three streaming platforms at $15 eachby canceling two you can save $30 per month o $360 per year.
3. Reduce the cost of your auto and home insurance.
Many people pay more than necessary in insurance. To lower your monthly payment:
✔ Quote with different companies. Rates can vary widely among insurers.
✔ Adjusts the deductible. If you can increase your deductible, your monthly premium will be lower.
✔ Take advantage of discounts. Some insurers give discounts for good driving records, paying annually or bundling auto and home policies.
Example: If you pay $200 per month for the car insurance, with a new quote you could lower it to $150saving $600 per year.
4. Refinance your mortgage or rent a cheaper house.
If you are a homeowner, refinance your mortgage can significantly reduce your monthly payment. If you rent, consider moving to a less expensive place.
✔ Refinance if interest rates have declined. If your current mortgage has a 6% interest rate and you can lower it to 4%, you could save hundreds of dollars a month.
✔ See tenant assistance programs. In some states there are programs that help reduce rental costs.
✔ Looking for roommates. If you have extra space, renting a room can help you split the costs.
Example: If you pay $2,000 for rentsharing with a roommate may reduce your payment to $1,000saving $12,000 per year.
5. Save on utility bills
Water, electricity and gas can be a big monthly expense. To reduce it, try these tricks:
✔ Uses LED bulbs and energy efficient appliances.
✔ Unplug unused devices. Many consume electricity even when switched off.
✔ Adjust the thermostat. In winter, turn it down a few degrees; in summer, turn it up a little to save on air conditioning.
Example: If your electricity bill is $150 per monthIf you apply these changes, you could lower it to $120saving $360 per year.
6. Plan your shopping and eating better
Impulsive shopping and eating out can drain your budget. Some ways to reduce these costs include:
✔ Make a shopping list and stick to it..
✔ Buy generic brands instead of expensive brands.
✔ Preparing meals at home instead of ordering take-out.
Example: If you spend $300 per month in restaurantscooking at home can reduce it to $100saving $2,400 per year.
7. Consolidate your debts to pay less each month
If you have multiple debts with high payments, consider consolidating them into one loan with a lower rate. This allows you to:
✔ Have a single, more manageable monthly payment.
✔ Reduce the interest rate and pay less interest.
✔ Simplify your finances.
Example: If you pay $800 per month in various debts with high rates, consolidating them could lower your payment to $500saving $3,600 per year.
8. Use applications to manage your money
If you do not know exactly where your money goesTry applications such as Mint, YNAB or PocketGuard. These tools help you to:
✔ See what you spend more on and find savings opportunities.
✔ Automate payments and avoid late payment charges.
✔ Establish a realistic budget and comply with it.
Conclusion:
Reducing your monthly payments doesn't mean sacrificing your comfort or quality of life, it's about being more strategic and conscious with your finances. Implementing even one or two of these tips can make a huge difference in your monthly budgethelping you reach your financial goals more quickly. Sometimes small changes can have a significant long-term impact.
You don't need to make all these adjustments at once. Start by identifying which areas represent the biggest expenses in your daily life and address those first. As you see results and become more comfortable with the process, you can implement more changes and look for new ways to optimize your finances.
