No matter if you own or rent, there is a good chance that you will have to pay utility expenses on a monthly basis. From gas to electricity to water, the cost of utilities can really add up. There may not be any way to cut these expenses out of your budget altogether. However, there are things that you can do to better budget for the future.
Review the Past 12 Months
How much money are you paying every year for utilities? If you don’t know the answer to this question you need to go back in your records and seek out the proper information. Once you know how much you are paying on average, you can better budget for the future.
In addition to an overall number, you can break down your average utility expenses by month. For example, you may find that you are using more water in the summer and more gas in the winter.
Does the Utility Company offer a Budget Plan?
Many utility companies offer a budget plan. In short, this allows you to pay the same amount (for the most part) every month. Subsequently, you can more easily budget for the upcoming months. When you know what your utility bills are going to be, you can set aside the appropriate amount of money while avoiding surprises.
To get setup with a budget plan, call your utility company to discuss any and all options.
Change your Due Date
Are you happy with when your utility bills are due? For some, it seems like the due date always comes at the worst possible time of the month. If you need to change your due date, call your utility provider and ask if this is possible. You may be surprised to find that most companies are more than willing to work with you. As long as you stay current and pay on time, your provider will do what they can to help you out.
Comparison Shop
Some people are under the impression that there is only one provider in their area. If you rent, you may have to use the utility providers suggested by your property management company. That being said, if you own your home you have the right to make the decision that best suits you and your budget.
If there are multiple providers in your area, at the very least you should compare rates. Soon enough, you may find that changing to a new company could save you a lot of money.
These tips can help you budget for utility expenses and save money in the future.
The cost of utilities may be on the rise, but this does not mean you are helpless. From a budget plan to changing your due date to finding a new provider, budgeting for future utility expenses can be a simple task.