If you’re struggling to save money, your monthly expenses could be to blame. From subscriptions and utilities to bank fees and interest, there are a host of monthly bills that can eat away at your budget. The good news: They don’t have to. 

Learning how to lower your monthly bills doesn’t have to mean making major sacrifices. A few simple changes could free up hundreds of dollars in your budget. Here are eight common expenses you might be overpaying for, along with tips for reducing them.

How to lower these 8 common monthly expenses

There’s a chance that you’re missing out on several potential savings opportunities by not taking a closer look at your regular expenses and exploring creative ways to save. 

Some of the most common expenses you may be overpaying for include: 

1. Automatic renewals 

When you sign up for a paid app, streaming subscription, or membership, it’s easy to put that expense on autopay and never really think about it again. But these expenses add up. 

Take some time to review your active subscriptions and memberships, including how much they cost each month and how often you use them. You might even discover a few you’ve forgotten about altogether. 

There are several budgeting tools that can help you track down the subscriptions you’re paying for. Rocket Money, for example, automatically identifies recurring charges from linked financial accounts, and the Premium version even offers cancellation assistance.

If you’re paying for services you rarely or never use, consider canceling those subscriptions or downgrading to a cheaper plan to free up room in your budget.

2. Food delivery fees 

The convenience of having a hot meal delivered to your doorstep may feel priceless, but the added costs involved in food delivery services can be exorbitant. 

A 2021 report by McKinsey found that if a customer orders a typical meal from a fast-casual restaurant on a delivery platform for $25, they may end up paying closer to $35 before taxes. Those extra costs include delivery fees ($2-$5 per trip), driver tips (around 10-20%), and platform service fees (around $3). 

Once you realize that a simple weeknight dinner could cost about 40% more just because you had it delivered, it might not feel like such a convenience anymore. 

Though it may not be realistic to cut takeout entirely from your budget, making the effort to pick up orders yourself rather than having them delivered can save quite a bit of money. In some cases, you may even be rewarded for choosing the pick-up option. DashPass subscribers, for example, can earn 5% back in credits on eligible DoorDash and Caviar pickup orders.

3. Insurance premiums 

When was the last time you thoroughly reviewed your auto, health, or home insurance policy? If it’s been a while, you could be paying more than necessary. 

For example, say you started working from home, but your auto insurance policy is still based on the annual mileage that includes your daily commute. Or perhaps your adult child moved out and no longer needs to be a driver on your policy. These are the types of details that should be regularly reviewed and updated so that your premiums reflect the most recent information and you get the best possible rate. 

Additionally, it’s a good idea to compare policies every year or two. Get quotes from at least three companies to see how your current premiums stack up. Be sure to compare policies with similar coverage limits, deductibles, and exclusions, so you’re making an apples-to-apples comparison.

And keep in mind that many insurers offer discounts for bundling home and auto policies, maintaining a clean driving record, installing safety devices, or enrolling in automatic payments. Contact your insurer to make sure you’re receiving every discount you qualify for.

4. Cell phone 

Your cell phone bill is another monthly expense that may be worth a closer look. 

Start by reviewing your current plan and comparing the cost with how much data, talk, and text you actually use. For example, if you pay for an unlimited data plan but rarely use more than a few gigabytes each month, you may be able to save by switching to a cheaper plan with a lower data allowance. Also, review your bill for unnecessary add-ons, such as device insurance or international calling features you don’t use.

Next, shop around and compare plans from competing carriers. Budget-friendly and prepaid providers, such as Mint Mobile, Visible, and US Mobile, often offer similar coverage at a fraction of the cost of major carriers. 

You can also contact your current cell phone company to ask about any loyalty discounts, promotional offers, or lower-cost plans that may be available. It’s also worth asking your employer whether they offer any discounts.

5. Internet

Like your cell phone, your internet needs may change over time. For example, you could be paying extra for faster speeds you don’t actually need, or an introductory promotional rate may have expired, leaving you with a higher monthly bill. In either case, it’s a good idea to explore cheaper plans and compare offers from competing providers.

You could also be missing out on potential savings by keeping your internet and cell phone plans with separate providers. Some companies offer discounts when you bundle these services.

Ultimately, internet service may be an essential expense, but that doesn’t mean you can’t save money on it. Choosing the right plan, provider, and features for your needs can make a meaningful difference in your monthly budget.

6. Beauty services 

If you’re trying to cut down on your spending, discretionary (AKA nonessential) expenses are typically the first that should go. But that doesn’t mean you have to eliminate self-care from your budget to save money. 

For example, consider having your hair done by a student if you simply need a trim or a quick color refresh. Salons run by cosmetology or beauty schools often offer discounted services performed by students who are training to become licensed professionals. 

Another option could be to invest in a membership or bundled package of services. For example, if you enjoy regular facials, massages, or spray tans, signing up for a monthly membership or prepaid package could lower the cost of each service, helping you trim your overall expenses without sacrificing the personal expenses that matter to you. 

7. Bank fees 

Not all financial institutions charge the same fees, but depending on where you bank, you could be paying unnecessary fees for monthly account maintenance, overdrafts, out-of-network ATM withdrawals, and more.

Fortunately, financial institutions are required by law to disclose applicable account fees; you can typically find a fee schedule on your bank or credit union’s website or request a copy directly.

Take some time to review your account’s terms and conditions and fee schedule to understand how much you’re paying based on your account type and banking habits. You may discover fees you didn’t know about or charges you could easily avoid. For example, you may be able to get your checking account’s monthly fee waived by maintaining a minimum balance or setting up direct deposit.

However, if you’re regularly paying bank fees, switching to a different account or financial institution could be the simplest way to cut these costs without sacrificing the banking features and services you need.

8. Credit card interest 

Today, the average credit card interest rate hovers around 21%-23%. Consistently carrying a high credit card balance while only making the minimum payment each month can result in steep interest charges that strain your cash flow. 

Making the effort to pay down your credit card debt can result in significant savings. However, if the idea of tackling a large balance seems overwhelming, there are strategies you can use to chip away at the debt and decrease how much interest you pay over time.

For example, consider making payments earlier or more frequently. Many credit cards calculate interest based on your average daily balance. So, making a payment before your due date or splitting your monthly payment into smaller, more frequent payments can reduce the balance on which interest accrues.

Additionally, do your best to pay more than the minimum due. Making only the minimum payment can keep you in debt for years and result in substantial interest charges. Even putting an extra $25 or $50 toward your balance each month can reduce the total interest you pay and help you become debt-free sooner.

Finally, if you have good credit, consider transferring your balance to a credit card with a 0% APR introductory rate. This can give you time (anywhere from 6-21 months, depending on the card) to pay down your balance without accruing additional interest. However, keep in mind that balance transfers come with a fee ranging from 3% to 5%, so weigh that up-front cost against your potential savings. You’ll also need to pay off the transferred balance before the promotional period ends to avoid accruing interest at the regular APR.