We can all agree on one thing: inflation has sent prices for EVERYTHING through the roof. As a renter, you may feel like you’ve lost control over your expenses in this economy. With a few simple steps, you can make your budget work for you, without sacrificing comfort or convenience. Keep reading and we’ll look at some helpful tips for saving money while renting.
Ditch the Unnecessary
The key to saving is to prioritize the things that are most important to you and shop around for the best deals. Ask yourself: Do you really watch Netflix enough to continue paying for it? How about that tanning membership you haven’t used in months? Or, do you no longer use your gym membership since your apartment community provides one? If you can cut these costs, you can save a lot of money each month to put towards savings!
Bring a Friend
If you’re looking to save even more money, consider living with a roommate in a two-bedroom apartment to cut the costs of rent and utilities dramatically. Before signing the lease, consult with your roommate to ensure the place you’re renting works for both of you. Ask your roommate where they commute to the most, where their employer is located, and where their family and friends are. If you’re both open about the location, look for rental communities on the outskirts of town. The closer to the city you live, the more you will end up paying.
Prioritize Paying Off Your Credit Card Debt
Paying off your credit card debt can be an effective way to reduce your monthly expenses and free up more money for other needs. This can also help improve your credit score, making it easier to qualify for an apartment or anything else requiring good credit. Plus, you’ll save even MORE money by getting rid of those interest fees. If you find yourself with good credit, but high credit card balances, look into a personal loan with a lower interest rate to consolidate all your debt into one payment. Loans will not harm your credit as harshly as high credit card balances can.
Pay Bills In Full, on Time, Every Time.
One of the best ways to save money while renting is to pay bills in full, on time, every time. Paying bills late or only making minimum payments can lead to additional fees, charges, and interest payments which can quickly add up and leave you in a bind. Setting up reminders on your phone or adding them to your calendar can also help to ensure that bills are paid on time. When your paycheck hits your bank account, look and see what bills are due between that date and the next pay date. Pay each of these bills immediately to get the money out of your account first, that way you’ll know for sure how much money you can use towards daily expenses and add to your savings!
Budget Your Wants vs. Your Needs
It is important to track all of your income and expenses to get a clear picture of where your money is going every month. Take a look at your bank account statements and write down any regular expenses. Organize the list into a “wants” or “needs” category. Once you have a better understanding of your finances, get your calculator ready! You can create a budget that will help you reach your financial goals. To help save money, consider carpooling, cooking at home more, canceling subscriptions, and shopping for groceries at discount stores. For those who are able to take on a side hustle, doing so can be a great way to increase your income and help you save even more money.
In addition to cutting costs and increasing income, it is important to budget a percentage of your income for unexpected costs and emergencies. Establishing an emergency fund can help you cover unexpected costs without having to rely on debt. You don’t want to find yourself in a pickle and put yourself back into credit card debt!