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Due to the rising costs of rent, it’s crucial for us all to budget and save money.
Save while you’re in college.
Budget and save for your dream wedding.
Cut costs on groceries and food.
As you can see, there are numerous categories to consider when managing living expenses and other aspects of life. Notably, rent is a significant one.
For those living on a single or low income, trying to save money can be a challenge.
If you’re wondering how to save money on rent, then you’re not alone. Rent prices have increased exorbitantly to the point where it’s not uncommon to spend 30% of your income on a monthly lease.
Renting does have a few benefits over owning a home, namely you don’t have to spend money on maintenance or repairs. You’re also not fixed to one abode, if you want to move to a different location or an apartment that offers cheaper rent, you can.
Getting ahead isn’t that difficult if you have the know-how, check out these tips for how to save money on rent, as well as managing money.
While you’re at it, you might want to check out these tips on furnishing your new apartment affordably. Even if you’re not moving, considering these suggestions could make your current space more comfortable without increasing your budget!
1. Look for ways to discount your rent.
Unlike paying a mortgage, you can negotiate on your rent to keep costs down. The best approach for doing this is before you sign the lease:
- Does the apartment have a car park you don’t need? Offer it to your landlord to rent elsewhere in exchange for discounted rent.
- Are there any less attractive elements of the apartment or building that you could use as leverage to negotiate a lower rent?
- If you can afford it, offer to pay a few months upfront for a discount, but repay your savings each month so you’re not out of pocket.
And when you re-sign for another fixed period:
- If your landlord wants to increase the rent once your lease is up, you don’t have to accept it, but be prepared to move out if they aren’t prepared to negotiate.
- Offer to sign an extended lease for a discount in rent, the stability of having a good tenant can make a landlord keen cut you a deal.
2. Choose a smaller apartment or studio.
Choosing a smaller apartment or studio is a strategic way to significantly reduce monthly rent expenses. Smaller spaces often command lower rental rates compared to larger counterparts in the same area.
Not only does this decision make financial sense, but it also encourages a minimalist lifestyle, urging tenants to prioritize essential items and declutter.
This approach can lead to fewer utilities and maintenance costs, and in urban settings, it often means living closer to city centers, reducing transportation costs. Opting for a smaller apartment or studio can be both a financially wise and environmentally conscious decision whether you’re living alone, with a partner, or a small family.
3. Consider getting a roommate.
Opting to get a roommate is an efficient way to distribute rental costs, making it a practical solution especially for singles, students, or young adults who may not yet have the financial stability to afford a place on their own.
This not only halves the burden of monthly rent, but it also splits utility bills, internet charges, and even some grocery expenses.
For many in this demographic, living with peers can offer both financial relief and a sense of camaraderie. It’s a system of shared responsibilities and mutual benefits that can make the early stages of adult life or the rigors of student living more manageable and socially enriching.
4. Be open to living in basem*nt or ground-floor apartments, which might be cheaper.
Basem*nt and ground-floor apartments offer unique advantages that go beyond just affordability.
While these units might lack the panoramic views of higher floors, they compensate with other benefits. Easier accessibility is a clear win, especially for those who value the convenience of avoiding stairs or long waits for elevators.
The natural insulation of basem*nt units can mean cooler summers and warmer winters, leading to potential savings on heating and cooling. Plus, for those who value privacy, being away from street-level gaze in a basem*nt or the comings and goings in higher traffic areas can be a perk.
Looking at the positive side of things with these units means prioritizing practicality and value.
5. Make a budget and stick to it.
Start by creating a budget, and they say you’ll be on the road to saving thousands of dollars.
This is easier said than done if you’re not used to having a set amount to spend each week and tend to live paycheck to paycheck. But it’s a good idea to start a savings habit sooner rather than later. A budget gives you peace of mind knowing that all your bills are covered and how much you have to play with each week or month. It also gives you more control over your money and where it’s going.
Not sure how to budget? Follow these tips for creating a basic budget:
1. Write down your income from all sources over a month:
- Salary
- Bonus
2. Write down your regular expenses by looking over bills and receipts:
- Rent
- Food
- Utility bills
- Transport
- Parking
- Gym membership
3. Minus your expenses from your income.
What’s leftover is the money that you can divvy up to spend or plan to put aside for certain savings goals. The beauty of a budget is that you can calculate exactly how long it will take you to reach those savings goals, whatever they may be.
Need more budget help? These money saving tips can help you ‘trim the fat’.
Related post: How To Save Money By Redeeming FREE Gift Cards and CASH Online (Amazon, Walmart, Starbucks, Visa, and more!)
6. Automate your savings.
If you’re hardwired to spend rather than save, then set up an automatic payment from your chequing account into a savings account on the day you get paid. If the money has been removed immediately then you’ll feel like you’re not really trying to save. You won’t be tempted to go on a shopping spree for clothes you don’t need or have an expensive night out on the town with nothing to show for it except a hangover.
This is not to say you shouldn’t treat yourself, it’s important to spend a little now and again, so you don’t feel like you’re working for nothing.
7. Spend less on food.
You can begin by cutting back on takeout and visiting grocery stores more often to prepare healthy and affordable meals at home.
If you’re unsure where to start, consider my tips on how to save money on groceries. These are the strategies I use to save anywhere between $300 to $500 per month on food! That extra $300 to $500 in savings can be money put towards your rent if you think about it.
By cutting backunnecessary spending on food, including your weekly grocery shop, you might be surprised at how much you can save. These tips will give you some good pointers on how to save money on groceries:
- Don’t shop for random items and hope to cook a decent meal; plan a menu and create a list of ingredients before you shop.
- Look out for items you need that are on sale or discounted.
- Include 1 to 2 meat-free meals as an affordable alternative.
- Eat local produce that is in season, avoid expensive imported goods.
- Never shop on an empty stomach.
- Resist buying items that aren’t on your list.
- Buy cheaper, generic brands for food staples like flour, sugar, oil, butter etc.
While you don’t have to track every cent religiously, being aware of what you spend and looking for ways to save money on rent and bills can help you build wealth, and meet your financial goals, whether it’s travel, a new car, or even just a rainy day account for emergencies.
Final words on how to save money on rent
Balancing your finances, especially when it comes to rent, often requires a blend of creativity and strategic decision-making.
Exploring varied housing options, such as opting for a cozier space or sharing with a roommate, can lead to considerable savings. Venturing into emerging neighborhoods or being flexible with amenities can make a notable difference in monthly expenses.
It’s essential to remember that every dollar saved on rent can be reallocated, perhaps towards a more wholesome food budget. As you improve your living environment, aim for a space that not only feels like home but also allows for financial freedom in other vital areas of life.
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