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A Step by Step Guide to Managing Your Bills

Finance | 11/02/2022 23:00

A lot of us feel anxiety every month when the bills start coming in. Maybe you’ve had a recent change in your life that has made your budget tighter than normal, or maybe you are just more conscious of your bank account lately. Either way, we are here to help you manage your monthly bills and get on track with a savings plan.


Here’s your step by step guide to managing your bills and getting your savings started (or restarted!)


What are normal monthly bills?


If you are just starting your budget, you may be wondering what bills you should include in your spreadsheet. And the short answer is: everything you spend money on. There are a lot of expenses that we tend to overlook in everyday life. Here are the most common monthly bills that you should consider in your budget:

  • Housing (rent or mortgage payment)

  • Car payments and/or car insurance

  • Gas, parking, and other transportation expenses

  • Health insurance

  • Groceries

  • Utilities (heat, gas, water, electric, cable, and internet)

  • Cell phone

  • Childcare

  • School costs (tuition, books, supplies)

  • Pet food, care, and insurance

  • Memberships and subscriptions

  • Homeowners insurance

  • Life insurance

  • Student loans

  • Credit card debt

  • Emergency fund

  • Retirement

While an emergency fund (and maybe even retirement) aren’t bills that you receive every month, you should treat them as such. By including them in your budget as bills, you will encourage yourself to add to the savings.


What is the smartest way to pay bills?


There are two main ways that you can pay your bills: all at once or as they come in. Some people prefer to pay them as they come in to ensure that they do not miss a payment and ensure that all payments are on time. Others prefer to pay them all at once so they can keep track of all expenses at once. Either way is fine as long as you remember to pay them all, and remember to pay them all on time.


How can I manage my monthly bills?


If you are struggling to make your monthly payments, having a system in place can help you gain some control over your situation. 


Step 1: Set Your Goals (Both Short Term and Long Term)

First things first: what are your financial goals? Are you trying to make ends meet every month, pay off credit card debt, or trying to save for retirement? Some goals will take longer than others to accomplish, so it’s good to break them down into short term and long term.


Short term financial goals may include:

Paying off credit card debt

Saving for a down payment for a new car

Boosting your credit score into the next bracket

Building an emergency fund that could cover 3-6 months worth of expenses


Long term financial goals may include:

Saving a certain amount for retirement

Saving for a down payment for a house

Paying off a mortgage


Defining your goal can help you create a plan, and a solid plan can help you succeed in your financial future.


Step 2: Make a Budget

Making a budget is the best way to get a handle on your monthly bills. Budgeting has a lot of benefits:

  • It helps ensure you don’t spend money you don’t have

  • It helps you see where you may be spending too much money

  • It will help you stay organized

  • It will help you to see your financial goals and the pathway to them


Many people put off creating a budget because they view it as a waste of time. After all, it does take some work up front to get one started. But in reality, a little work up front can save you a lot of time and frustration later on. By knowing exactly what money is coming into your household every month and what is going out, you can more clearly see what changes you need to make in your spending.


When you are trying to manage your bills, you want to take a detailed look at your budget to see where you are spending the most. Is your grocery bill unnecessarily high? Are you spending too much on electricity every month? Are your streaming services adding up? Determining where your money is going is half the battle sometimes.


Step 3: Slash your Budget 

Once you have identified where you are spending a lot of your money you can start making adjustments and looking for places to slash your budget. There are a number of places you can start making small adjustments.

Slash your Grocery Bill

When you look at your overall budget, you may be surprised at how much your grocery bill is. But the good news is there are a number of easy and effective ways to cut this number.

  • Switch to generic brands on whatever you can.

  • Try to be more mindful of food waste.

  • Start clipping coupons.

  • Sign up for your store’s reward program

  • Go online to look for manufacturer’s coupons.

Slash your Entertainment Bill

If you are spending a little too much on entertainment every month, look at how your spending breaks down. If you are spending a lot out at restaurants and bars, consider staying in and cooking or hosting a wine night at your home. If you are spending a lot on streaming services, see which ones you can cancel and which ones you can split with friends and family. 

Slash your Car Payment

Most people are overpaying on their monthly car payment. But if you are able to refinance your car loan, you can save a lot every month. Refinancing can help you in a few ways. If your credit score has increased since initial financing or the market rates have decreased, you may qualify for a lower car loan APR. This can add up to a lot of money back in your pocket every month. But refinancing can also help you change your repayment period, which can reduce your monthly payment as well.


If you have a $20,000 car loan at 8% interest that you have to pay back over 36 months, your monthly car payment is $626.73. But if you stretch that payment out over 60 months, your monthly payment is cut to $405.53, even if you are not offered a lower APR. You will end up paying more in interest over the life of the loan, but that breathing room can make all of the difference in your monthly budget.


Step 4: Prioritize Payments

If you know you don’t have enough money to pay all of your bills, determine which ones are the most important to pay in full. In general, you should prioritize the payments with the highest interest rates and harshest missed payment fees. If some of your bills can be deferred, see what the details are for this. This can be a good option to get some space and get your head above water. Some loans, such as student loans and mortgages, will still charge interest during deferment, which can end up costing you a lot more in the long run, so weigh out your options.


Step 5: Negotiate

It never hurts to call and try to negotiate rates and fees. Look at your bills and see where you might be able to negotiate. You may have luck with the following:

  • Your cell phone 

  • Credit card interest

  • Your cable or satellite bill

  • Car insurance

  • Newspaper subscriptions

  • Gym memberships


By looking online for competitors rates you can get some leverage beforehand. They can help guide you on ways to cut your bills. Your cell phone company may allow you to reduce your data plan (which can save you a lot), while your car insurance company may allow you to increase your deductible, lowering your monthly payments in return. 


Step 6: Consolidate debt

If you have a significant amount of debt, it might be worthwhile to consolidate it. Not only will it be easier to keep track of, but it may help get you some breathing room. You can contact a debt consolidation company, or you can do it yourself by opening a credit card that offers 0% on balance transfers. By transferring all of your debt to this card you will have time to pay off the balance before you will have to pay interest (these promotions typically last for 12-24 months). That’s one to two years of money going towards your principal rather than towards interest, as it would be if you did not consolidate. But be sure to pay off your balance by the time the promotion is over or you will pay a lot in retroactive interest. 

That’s how you can better manage your monthly bills.


Monthly bills can be overwhelming, so taking the time to get organized and manage your payments is important. Be sure to analyze your budget to see where you could be cutting costs and saving money. And if you have a monthly car payment, chances are you could be saving a lot by refinancing your car loan. Contact Auto Approve today to find out just how much money you could be saving. 

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Top 4 Ways to Get a Lower Monthly Car Payment in 2025

How can you get a lower monthly car payment?When money is tight, or you're hoping to make a big purchase, every penny counts. Whether you're trying to save up for something big, looking to put more money where it matters, or cutting back in leaner times, lowering your expenses can help.That means, when you're going through your budget, you may want to figure out where you can save a few dollars. For many people, a car payment is one of the bigger bills they pay each month. If that's the case for you, lowering your car payment could be the answer to your financial challenges.Whether you need a temporary fix or a long term solution, there are tons of great options out there to help you secure a lower monthly car payment.Here are the four best ways to get a lower monthly car payment1. Talk to your lenderLenders are in the business of making money, and they only make money when you make your payments. 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Refinance your carRefinancing can lower your monthly car payments in a number of ways and is likely to be your best option to effectively and sustainably reduce your monthly payments. Since refinancing benefits both you and your new lender, it's a win-win – they don't need to make more money than your current lender, so you're more likely to get a deal that'll cost you less overall. Here's how.You can get a lower interest rateOne of the main benefits of refinancing is securing a lower APR. There are several reasons you might be able to get a better interest rate this time around.You didn’t get a good deal on your original loan. If you went in to look for a car and got talked into dealership financing, there's a good chance you got stuck with a higher-than-necessary APR. In this case, refinancing is likely to lower your APR significantly and cut your payments drastically.Interest rates have dropped. Interest rates fluctuate based on how the economy is performing. 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You can either trade in your car to a dealership or sell the car on your own.Almost all dealerships will accept trade-ins and can put you in a car that will have lower monthly payments. Make sure you talk to the dealership and are upfront about what you can and cannot afford. You can also choose to sell the car privately. This is a bit more work than going to a dealership, but you will probably get more money for your car. If you want to sell your car on your own, be sure to clean your car very well, get good pictures, and make sure maintenance records are up to date. You want to make your car as attractive as possible to increase the amount of money you can make.Whether you sell to a dealership or to a private buyer, be sure to know three things before starting this process:How much you owe. Know how much money is left on your loan balance, and how much you need to sell the car for in order to break even.How much your car is worth. Go to Kelley Blue Book or Edmunds to look up the value of your car. It might be worth more than you think and you don’t want to lose out on money that could be yours.What you’ll do for transportation next. If you plan to replace your current vehicle with a less expensive one, make sure you take time to look at the market and find vehicle options that’ll fit your needs before giving up your car. Vehicle prices have fluctuated drastically over the past 5-10 years and are likely to shift again with changing car tariffs. If you won’t be replacing your vehicle, have a backup plan for how you’ll get around and test it out for a week before making the change.4. Lease a Car InsteadIf you have sold your car but still need to get around, getting a lease instead of purchasing a new car might be a good option. Leases are generally cheaper than buying a new car, as you are only paying for the depreciation that accrues during your use. There are three main leases you can pursue:New Car Lease – This is the most common type of lease and is widely available. You typically need pretty good credit and a down payment to secure a new car lease.Used Car Lease – These are not as common as new leases but they are out there if you do your research. The APR might be a bit higher, but since the car is not worth as much you might have lower payments than if you got a new car lease.Lease Takeover – This occurs when someone wants to get out of their existing lease for one reason or another. Websites like LeaseTrader.com and SwapALease.com provide a space for you to shop around for a lease takeover. Some people who are desperate to get out of their existing leases may even offer cash incentives, making this a good option if money is particularly tight. You will still need to go through an application and credit check, but you can probably secure a nicer car for a lower rate than if you were to get a new car lease.And those are our top tips for lowering your monthly car payment!In times of economic uncertainty, budgeting and saving money is incredibly important. If you are struggling to make ends meet every month, consider one of the options above.And if refinancing seems like the right option for you, or you want to find out just how much refinancing could lower your monthly payment, Auto Approve is here for you. All it takes is a few clicks and to get a quote and get on your way to more money in your pocket and less on your vehicle payments.GET A QUOTE IN 60 SECONDS
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*APR and Fees Disclosure: Auto Approve works to find you the best Annual Percentage Rate (APR), which is based on factors like your credit history, vehicle and desired payment terms. Fees to complete your loan refinance vary by state and lender; they generally include admin fees, doc fees, DMV and title. Advertised 5.49% APR based on: 2019 model year or newer vehicle, 730 minimum FICO credit score, and loan term up to 72 months. All loans subject to credit and lender approval.
Auto Approve has an A+ rating with the BBB and is located at 5775 Wayzata Blvd, Suite 700 #3327 St. Louis Park, MN 55416-1233. Auto Approve works to find its customers the best terms and APR, which are based on factors like credit history, vehicle, and desired payment terms. Loan amounts, costs, and fees vary by state and lender; they generally include admin fees, doc fees, DMV, and title fees, depending on the lender and period of repayment. There is no fee to obtain a quote and all refinancing-related costs are included in the amount financed so there are no out-of-pocket costs! For more information, please go to AutoApprove.com.