Simple Ways to Reduce Your Monthly Utility Bills

When you're looking for ways to cut back on monthly expenses, utility bills may not be the first thing you think of but they’re actually a great place to start. From electricity and water to internet and gas, there are often hidden savings opportunities waiting to be uncovered.

With a few mindful habits and smart investments, you can lower your bills and free up room in your budget. Here’s how.

1. Audit Your Energy Usage

Start by identifying where your energy is going. Many utility companies offer free or low-cost home energy audits that pinpoint inefficiencies like drafty windows or outdated appliances.

Quick wins:

• Replace incandescent bulbs with LED lights.
• Unplug electronics or use a smart power strip to stop phantom energy drain. Yes, that’s a thing.

• Set your thermostat a few degrees higher in the summer and lower in the winter.

Pro tip: Consider setting up a budget using a personal checking account that includes tracking tools so you can monitor spending and see how your utility savings add up.

2. Be Smart with Your Thermostat

Heating and cooling your home is one of the largest energy expenses. A programmable or smart thermostat helps optimize temperature settings based on when you're home, asleep or away.

Simple adjustments:

• In winter, aim for 68°F when home and lower it at night while you’re asleep.
• In summer, keep it around 78°F and use fans for better airflow.
• Set your system to eco-mode or schedule heating/cooling around your daily routine.

Some utility companies even offer rebates for installing a smart thermostat, so check for available rebate programs near you.

3. Upgrade to Energy-Efficient Appliances

If it’s time to replace your washer, dryer or even your refrigerator, look for the ENERGY STAR® label. These appliances use less electricity and water, reducing both utility bills and environmental impact.

Ways to fund upgrades:

• Open a savings account dedicated to home improvements, especially one with a higher yield so it draws more interest while you’re saving up.
• Consider a personal loan if you’re doing larger efficiency upgrades like replacing HVAC systems or windows.

Not sure how to get started? Use a free budgeting tool or calculator to create savings goals tied to home upgrades.

4. Reduce Water Waste

Water bills can creep up—especially during summer months or if you have a large household. Reducing waste not only saves money but also helps conserve natural resources.

Water-saving ideas:

• Fix leaking faucets and running toilets - a running toilet can waste over 200 gallons a day!.
• Install low-flow showerheads and faucet aerators.
• Only run full loads in the dishwasher or washing machine.

If you’re in an area with tiered water pricing, these changes could make a big difference.

5. Shop for Better Utility Rates

If you live in a deregulated energy market, you might be able to shop around for a better electricity or gas rate. Even bundled internet and cable services often have promotional rates or discounts you can negotiate.

Tips:

• Compare rates online or call your providers to ask about new customer offers.
• Review your bill carefully—some services add hidden fees that can be trimmed.

6. Go Solar or Use Renewable Programs

While solar panels require a larger upfront investment, they can drastically reduce or even eliminate your electric bill in the long run. Alternatively, many utility companies offer green energy programs that allow you to opt into renewable sources without installing anything.

Financing options:

• Talk to your banker about a home equity line of credit (HELOC) or possibly a dedicated solar loan to fund installation.
• Check federal or state tax incentives for solar upgrades with the U.S. Department of Energy.

7. Build Good Habits That Add Up

Sometimes, it’s the little things that make a big impact over time.

Everyday actions:

• Turn off lights when you leave a room.
• Wash clothes in cold water.
• Hang dry when possible.
• Close curtains during the hottest part of the day to reduce cooling costs.

If you’re trying to cut expenses to meet a financial goal, these habits support your long-term success—and the extra savings could be added to an emergency fund or used to pay off debt faster.

Small Changes, Big Impact

Reducing your monthly utility bills doesn’t have to involve major lifestyle changes. With just a few adjustments, you can cut costs, conserve resources and improve your overall financial health.

At OMB Bank, we’re here to support your savings goals—whether that’s through smart budgeting tools, low-fee accounts or financial education. Ready to take the next step? Explore our digital banking features or reach out to a banker today.

OMB and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decision.