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Welcome to another edition of the 1% Habits Newsletter!

This is where you’ll get up-to-date information on small wins to improve your habits, productivity, and life satisfaction. 

Let’s get to it…

📈 11 Ways to Lower Your Fixed Expenses

Throughout this newsletter, we’ve talked about different ways to apply the 1% habits to your productivity, health, and relationships.

Today, I’d like to dive into the topic of personal finances.

Specifically, we’ll talk about how to take the 1% habit mindset and examine your fixed household expenses to see where you can make adjustments.

While we often tweak our variable expenses based on our monthly activities, we tend to overlook fixed expenses, assuming they are set in stone.

Fixed costs like utility bills, insurance, and subscriptions might seem unchangeable, but with the right strategies, you can reduce them.

By making minor adjustments to your fixed expenses, you can create a significant compounding effect on your personal finances over time. These small, 1% improvements can add up, leading to substantial savings and greater financial freedom.

Okay, let’s get started.

Why Is Lowering Your Fixed Expenses Helpful?

Here are some ways lowering your fixed expenses can help you:

● Increased Savings: Finding a way to lower your fixed expenses frees up more money each month, allowing you to save more for emergencies, investments, or future goals.

● Less Financial Stress: Lower monthly bills mean fewer financial worries, helping you to feel more secure and at ease.

● More Flexibility: With lower fixed expenses, you can allocate funds towards variable expenses that matter most to you, e.g., travel, hobbies, or experiences.

● Debt Reduction: Extra savings can be directed towards paying off debts faster, helping you become debt-free sooner.

Okay, now let’s talk about specific strategies you can use to lower the costs of your day-to-day life.

11 Ways to Lower Your Fixed Expenses

1. Request for property reassessment for the possibility of lowering property tax.  Have your home’s value reassessed. Depending on the area you live in, it is possible that through the reassessment, you’ll pay lower property taxes. However, keep in mind that if you’ve made improvements to your property over the years, this might cause the appraisal value (and the property tax) to go higher.

2. Check insurance costs. Review your insurance policies and consider adjusting your coverage levels. You might be able to lower your premiums by increasing your deductible or eliminating unnecessary coverage options. For instance, if you have an older car, you might not need comprehensive coverage. Additionally, ask your insurance provider about any discounts you may qualify for, such as those for safe driving, bundling multiple policies, or installing security systems in your home.

Also, if you’ve been with an insurance provider for 5 or more years, you might want to double check if they offer other cost-saving options. It’s possible that you could be overpaying for your premiums. Contact their representative and inquire if they can offer you a lower quote. They may be able to give you one.

3. Ditch subscriptions you don’t need. It’s a good idea to review your monthly subscriptions and see if you still need all of them. For example, with the availability of streaming, it’s probably time to cancel that cable service. If you can’t completely cancel it, you can downgrade your subscription to remove channels that you don’t really watch. Same goes for gym memberships and apps.

4. Lower your utility bills. Your entire family can participate in lowering your electricity and other utility bills by being mindful in using them. By simply turning off lights and appliances when nobody’s using them can already lower your monthly electricity bill by a significant amount. You can also check your home insulation to ensure that it’s sealed well against heat and cold. 

Also, switching to a different company can save you money on electricity, water, or gas. Some providers offer incentives for new customers that can lower your costs.

Additionally, look into energy-saving programs or rebates that can help offset the cost of any necessary upgrades to make your home more energy-efficient. Regularly reviewing and comparing utility rates can ensure you’re always getting the best deal available.

5. Completely pay off your credit card debt as soon as possible. A lot of money goes to paying off interests in credit card bills. Fully paying your credit card bill as soon as possible can significantly lower your fixed expenses every month.

6. Get rid of that storage unit. A Consumer Reports article reveals that 10% of Americans rent a storage unit. Storage facilities are helpful when moving between homes and when you’re living in a high-rent area. However, if you’re using a storage unit just because you have too much stuff, you might want to start getting rid of these items. You can free up a lot of money and let go of the mental load caused by those items in storage.

7. Refinance Your Mortgage: If interest rates have dropped since you first took out your mortgage, consider refinancing to a lower rate. This can significantly reduce your monthly payments. Additionally, refinancing might allow you to switch to a mortgage with better terms, such as a shorter loan period, which can save you even more money over time. Be sure to calculate the closing costs and other fees associated with refinancing to ensure that it will be a cost-effective move for your situation.
   
   

8. Negotiate Rent: If you're renting, try negotiating with your landlord for a lower rent. You might be able to secure a discount by signing a longer lease or by offering to handle minor maintenance tasks yourself. Also, consider researching comparable rental properties in your area to use as leverage during your negotiations. Showing your landlord that similar properties are renting for less might convince them to lower your rent to keep you as a tenant.
   
   

9. Downsize Your Home: Moving to a smaller home or a less expensive area can dramatically cut your housing costs. This includes not just rent or mortgage payments, but also utilities and maintenance expenses. Downsizing can also lead to a simpler lifestyle with fewer possessions to manage. Consider the long-term benefits, such as reduced property taxes and lower insurance premiums, which can add up to substantial savings over the years.
   
   

10. Bundle Services: Many service providers offer discounts if you bundle services together. For example, you might get a better rate by combining your internet, phone, and cable services with one provider. Bundling can also simplify your monthly bills, making it easier to manage your expenses. Be sure to review the terms of the bundle to ensure that you’re not paying for services you don’t need or use, and periodically reassess your needs to make adjustments as necessary.
    

11. Cook at Home: Eating out frequently can add up quickly. By cooking at home more often, you can save a significant amount on food expenses. Plan your meals, make a shopping list, and buy in bulk to reduce costs. Cooking at home also allows you to eat healthier by controlling the ingredients in your meals. Consider preparing meals in advance and freezing them for convenience, which can help you avoid the temptation of ordering takeout on busy days.

Final Thoughts on Fixed Expenses

By focusing on these 1% improvements, you can steadily lower your fixed expenses and enhance your financial well-being. Start by choosing one or two strategies that seem most feasible for your situation and implement them.

For instance, you might begin by negotiating your insurance premiums or refinancing your mortgage. Small steps like these can lead to significant savings over time.

Remember, the key to success is consistency. Regularly review your expenses and look for additional opportunities to save. As you make these incremental changes, you'll not only reduce your financial burden but also develop a habit of mindful spending. This proactive approach will empower you to take control of your finances, setting you on a path to long-term financial stability and success.

Take action today by reviewing your fixed expenses and identifying areas where you can make those 1% changes. Track your progress and celebrate your small wins along the way. Over time, these small adjustments will compound, leading to substantial improvements in your financial health and overall quality of life.

⚙️1% Habit Idea

Today we’re continuing the conversation about personal financial habits. Specifically I’d like to recommend a tool that I use daily. In fact, I used this app this morning to save $20 on a large stock photography purchase. 

Online shopping is super convenient, but hunting for the best deals can be a hassle.

What if there was a way to find the best discounts automatically?

Enter Honey — a game-changing browser extension that helps you save money while shopping online.

It works by automatically searching for coupons and applying them for you at checkout.

So, whether you're buying new shoes, video games, or even groceries, Honey is your secret weapon for getting the best prices.

An Easy Guide to Get Started with Honey

Ready to start saving with Honey?

Follow these simple steps to get started.

Step 1: Install the Honey Extension

The first thing you need to do is add Honey to your web browser. Here’s how you do it:

1. Visit the Honey website.
   

2. Add Honey to your browser by clicking on the orange “Add to [browser]” button you see on the homepage. In the picture below, the Honey extension is going to be installed in Chrome.
   

3. Follow the prompts. Your browser will guide you through the installation process. Just click “Add” or “Install” when prompted.

Once it’s installed, you’ll see the Honey icon in your browser’s toolbar and a sign-in page.

Step 2: Create Your Honey Account

While you can use Honey without an account, signing up lets you access extra features like earning rewards.

Creating an account is easy.

You can sign in or join using your email, Google, Paypal, or Apple account.

Step 3: Shop Like You Normally Do

Visit your favorite online stores like you always do.

Honey works on numerous sites including Amazon, eBay, and Target. Add items to your cart and head to the checkout when you’re ready.

Step 4: Let Honey Work Its Magic at Checkout

Here’s where Honey really shines. When you’re on the checkout page:

1. Watch for Honey. If Honey finds any coupons, a pop-up will appear, asking if you want to “Apply Coupons.”

2. Apply coupons. Click the button, and Honey will start searching and testing codes to find the best one.

3. Enjoy the savings. In a few seconds, Honey will apply the best coupon, and you’ll see your total drop.

Honey is an amazing tool that makes online shopping easier and cheaper.

By adding the Honey extension to your browser, you can start saving money right away when you shop online.

🗂️ The Resource Roundup

🧠 TikTok Sued for “Wreaking Havoc” on Teen Mental Health - Are social media platforms fueling a mental health crisis among teens? This article explores the latest lawsuits against TikTok by 14 U.S. states, uncovering claims of harmful addictive features and raising urgent questions about accountability, child safety, and the role of tech giants in young people's well-being.

✔️ 40 Life Lessons I Know at 40 (That I Wish I Knew at 20) - What if the wisdom you needed most was just a few life lessons away? Mark Manson's 40 Lessons at 40 is a treasure trove of hard-earned insights that challenge, inspire, and redefine how to navigate life’s complexities—perfect for anyone reflecting on their own journey or seeking actionable advice.

🎯 Unlock Your Potential: The Science of Goal Achievement - What if your mind could work like a guided missile, adjusting itself to hit any goal you set? This article reveals a science-backed method to harness your brain's natural goal-seeking power, combining clarity, visualization, and trust in the process for life-changing results.

📱 These habits are (rapidly) fixing my phone addiction – Spending too much time on your phone? This article discusses seven habits to overcome phone addiction, such as setting an evening phone curfew, avoiding social media until noon, and enabling grayscale mode to make the phone less appealing. Additional strategies include turning off Face ID, dedicating phone-free hours, simplifying the phone by removing unnecessary apps, and using “Do Not Disturb” mode to minimize distractions.

🗓️ A 15-Min Planning System to Win the Week – If you feel that your week starts with no direction, this article introduces a 15-minute Sunday planning routine that helps reduce procrastination and chaos. It gives you a clear structure for the week ahead by setting a main weekly priority, listing secondary tasks, migrating unfinished tasks, and prioritizing the list using the ABC method.

That’s it for today.

Hope you’re having a good week so far.

Talk soon.

Cheers,

Steve Scott