The cost of living is rising and, for many, budgeting and saving money is becoming a priority. While small savings here and there are beneficial, examining and reducing your biggest monthly expenses can make a significant difference to your finances. Here are some tips to help you lower those major costs and free up more of your hard-earned money.

Housing costs are typically the largest expense for most people. Consider downsizing to a smaller home or apartment, or look for a more affordable area to live. Renters should negotiate with their landlord, as you may be able to lock in a lower rate or receive discounts for early or on-time payments. If you’re a homeowner, review your insurance policy annually to ensure you’re getting the best rate and consider refinancing your mortgage to take advantage of lower interest rates.

Transportation is another major expense. Evaluate your car choices and consider buying used rather than new, as depreciation has already affected the price. Opt for fuel-efficient vehicles to save on gas costs. If public transportation is an option, utilize it to reduce your overall transportation costs. Maintaining your vehicle properly and shopping around for insurance can also help lower these expenses.

Groceries are a necessity, but the cost can quickly add up. Plan your meals to reduce food waste and only buy what you need. Shop sales and discounts, and use coupons to maximize your savings. Buying non-perishable items in bulk can also reduce costs, and cooking at home is generally cheaper and healthier than eating out.

Utility bills can be optimized by making your home more energy-efficient. Simple steps like switching to LED light bulbs, installing a smart thermostat, and ensuring your home is properly insulated can reduce energy costs. Review your cell phone plan and negotiate with providers, as they often offer promotions or discounts to retain customers.

Review your insurance policies regularly, including health, life, home, and auto insurance. Shop around for better rates and ensure you’re getting all the discounts you’re entitled to. Bundling insurance policies with the same provider can also lead to significant savings.

Entertainment and subscription services are often overlooked expenses. Track your spending in this area and cut back on any unused or unnecessary subscriptions. Share family plans with trusted friends or family members to reduce the cost per person.

Finally, don’t forget about taxes. While you can’t avoid them, you can reduce their impact by maximizing your tax deductions and credits. Donate to charity, contribute to retirement accounts, and take advantage of any applicable tax breaks, such as those for students or homeowners.