Money Saving Tricks For Homeowners and Renters

As a result, finding ways to cut on those costs can help them save money. Some money saving tricks are as simple as replacing a light bulb, while others may require more paperwork.

In this article, we explore five tricks that can help homeowners and renters save a small fortune. When used together, they can help families save as much as $3,000 each month. In some cases, they can also help them make some extra money.

Reduce your utility bill

It is not unusual for a family to spend over $1,000 each year paying their utility bills. What some families are not aware of is that there are efficient ways to reduce energy bills by almost fifty percent, saving hundreds of dollars each year.

People think that electric and electronic devices do not consume energy when turned off. However, this is not true. A recent study revealed that such devices can cost homeowners up to $200 each year if they are not unplugged when not being used. Experts also recommend that households unplug these devices to protect them in case of power surges, which can damage them permanently. This does not include home appliances that are always on, such as fridges and air conditioners.

Second, on the list is light bulbs. Some households decided not to replace incandescent light bulbs with more energy-efficient ones because they think that the cost to purchase them will outweigh any potential savings. However, this is not the case, as energy-efficient light bulbs such as compact fluorescent bulbs or LED bulbs have seen their price drop in recent years. Also, an incandescent bulb will add $16 to the energy bill if it stays on five hours per day for a year. By comparison, energy-efficient light bulbs cost only $6.

Most houses have an average of 45 light bulbs. Those who use incandescent bulbs will pay around $720 each year on energy bills because of the bulbs only. By contrast, those who use energy-efficient light bulbs will pay around $270, which is $450 less, or a reduction of around 63 percent.

A six-pack of 9-watt LEd bulbs can be purchased for around $20. Replacing 45 bulbs would cost around $150, which is one-third of what a family would save in a single year. Given that most LED bulbs last for around 10 years, this means a family could save as much as $4,350 in energy bills before they have to replace the bulbs. Also, LED bulbs produce at least 75 percent less heat than incandescent ones, which means further savings will be achieved due to lower energy consumption by HVAC and air conditioners.

Finally, households can save even more money by installing home automation and smart devices in their houses. This is because these devices can help control when electric and electronic devices are turned on and off. For example, home automation can help families turn off the television when they leave it on by mistake. It can also help them regulate how much energy air conditioners consume, as well as turn off lights when needed.

Save money with a FMERR mortgage refinance

Homeowners who have a mortgage with Freddie Mac can save thousands of dollars a month by refinancing their loan with a program known as Freddie Mac Enhanced Relief Refinance, or FMERR. This refinancing program was created after the Great Recession of 2008 to help homeowners whose houses have lost value, or who had not benefited from rising home values. As a result, many households have found themselves underwater, which means that what they owe is more than what the house is worth.

Homeowners who are underwater do not have enough equity in their houses to meet refinancing requirements. In general, mortgage lenders require at least 20 percent equity before approving a refinance request. In contrast, FMERR has no equity requirements.

As a result, homeowners who are stuck with high interest rates can refinance and lower their payments by as much as 30 percent. For example, a homeowner who bought a $400,000 home in 2008 with interest rates of 5 percent would pay almost $2,100 each month.

With FMEER, they can refinance their interest rates down to 3 percent, which would lower payments to around $1,250. This would also help them save around $100,000 in interest paid over what life remains on the loan. They can also save as much as $10,000 per year.

FMERR does have some unique requirements homeowners must meet in order to qualify. First, applicants must not be behind with their monthly mortgage payments. Second, their loan must have been issued after October 1, 2017. Third, at least fifteen months must have passed between the origination date and their application date. And finally, homeowners interested in the program must hurry up, as it expires in September 2019. However, the federal government will most likely announce new programs to help homeowners who are underwater.

Rent out spare rooms or spaces

A recent report by the U.S. Census Bureau revealed that around 36 percent of the population is now renting. However, many homeowners still have unused space inside their houses. Putting unused space to make money is now possible. Renting a single room can net families an extra $800 per month, or more, depending on where the house is located.

Households who are interested in renting a room or apartment can register their properties in popular renting platforms like AirBnB. Through such services, households can rent properties for weeks or months. However, why would any homeowner consider an online renting service rather than becoming a traditional landlord? Because those who rent through AirBnB and similar services can make as much as five times what they would make by renting directly. The reason for this discrepancy is that AirBnB does not have to comply with local regulations on renting prices.

To place properties on AirBnB, landlords must first create and account. They must also meet some guidelines that determine the minimum conditions a property must be before it is accepted. Once they do, landlords can start receiving tenant applications.

Quality guidelines are not the only thing prospective landlords must worry about. Any money they earn through AirBnB must be reported to the IRS, just like any other income source. This means they must make sure their pricing is competitive while also sufficient to cover tax payments, repairs and maintenance. In some states, landlords can deduct repairs and maintenance expenses from their taxes.

As mentioned above, renting platforms are not subjected to local regulations. However, that does not mean landlords can ignore them. In Florida, for example, the state legislature has approved laws and regulations that make it difficult to rent through AirBnB and similar platforms. These laws are often put in place to protect tenants from rent hikes. Before putting their property for rent, landlords must make sure doing so will not violate any laws, or they might otherwise face legal issues.

Finally, tenants who prefer not to rent bedrooms can choose to rent storage areas or garage space instead. Short-term rental platforms are not focused on bedrooms and apartments exclusively.

Stock up your fridge

Fridges and air conditioners have one thing in common: they both regulate the temperature inside closed areas. As a result, they will consume less energy if the target temperature is easier to reach. For example, an air conditioner located in an empty house with open windows will require more energy to raise or lower temperatures than one located in a house with closed windows.

The same principle applies to fridges. An empty fridge will use more energy to reach lower temperatures than a full fridge. This happens because it is easier for air to change its temperature that solid objects. As a result, stocking the fridge with food and other objects will help it keep temperatures low more efficiently, and thus reduce power consumption.

In general, anything that can be stored in the fridge should be placed there. This includes vegetables, fruits, and other perishable foods. If there isn’t enough food to stock up the fridge, families can use bottles of water instead, which are as efficient as food and do not become spoiled over time. Also, it is recommended to set the fridge’s temperature to between 36 and 38 degrees Fahrenheit for maximum efficiency.

Save on home repairs

Many homeowners are counting on their home insurance policy to cover home appliance maintenance and replacements. That is because the majority of households do not have the cash to cover such an event. The best way to be protected against emergencies is by purchasing a home warranty program.

Home warranties, also known as home service contracts, are insurance policies that cover the cost of maintaining and repairing malfunctioning home appliances. Some policies even cover a potential replacement. Families can save thousands of dollars in expensive home repairs with the right home warranty plan.