Are you a person who is struggling to cope with your high rent? Then, unfortunately, you may have to pay a huge portion of your income to your rent. So, you may be looking for a guide or tools to manage all your finances, with your high rent. In order to give support for such people, including you, founder activity loves to share this helpful guide.
Saving money is hard when there is none left after paying high rent. But, it is a pretty important thing. Of course, there are quick fixes, like selling your stuff and earn some money. But saving is not a one-time thing. It requires you to do so constantly every month. So, let’s see the ways to save money when rent is high.
Effective ways to save money when rent is high
You may be tired of spending too much money on your home. Not only that, it will be a reason for you to limit your budget and start looking for ways to cut your spendings. But, you have to save money through the rent is high. So, here is an extensive list of ways on how to save money while renting a place.
#1. Balance all your needs and wants
Keeping a balance on the needs and wants, is the first and foremost step to save money. Before getting to the point, let’s determine the needs and identify the wants.
How to Determine the needs?
Financial needs are the costs that are essential for you to be able to live and work. As examples, housing, transportation, insurance, food, gas, and electricity are the financial needs.
Identify the wants?
Wants are the expenses that support you live more comfortably. They are the thoughts that push you to buy for fun or leisure. For instance, clothing is a need. Designer clothing is a want.
So, now you can understand the difference between needs and wants. Now, you just have to start accounting for wants and needs in your budget. First, write a list of all the things you buy, everything from toilet paper to mortgage fees. Then group them into broad categories. And now divide them into needs and wants.
For example, basic hone bills fall into the category of needs while the Netflix subscription fall under wants.
With this list, you could able to understand what you need the most and what ruin your income.
But, remember wants are not inherently bad. They are pleasant. Sometimes, wants will help you to accomplish important goals like keeping touch with loved ones, having fun, and so on. But, they are not necessary for living. They will be an obstacle for the journey of saving money. So, adjust your spending on wants and you can save money though you pay high rent.
#2. Get yourself a roommate
One of the easiest ways to save money when the rent is high is getting yourself a roommate.
Just think, the average cost of a one-bedroom apartment in 2020 is $964. In the same, the average cost of a two-bedroom apartment in 2020 is $1192. Just divide the average cost of a two-bedroom apartment by two, and it is $396 per month. So, now you can easily understand that living with a roommate is more profitable than living alone.
Therefore, consider getting a roommate or two. But, finding a compatible roommate to share your apartment is far more challenging than it seems. In order to find one you can,
- Revisit your contact list
- Consult your local network
- Use social media
Word of mouth is the best way to find a roommate for you. However, finding a roommate is a cost-efficient decision and it will help you save your money by cutting your rent fee in half.
#3. Slashing debt
Are you wondering how slashing debt is relating to saving money when rent is high? Well. Just think, if you are experiencing the loans which often have the highest rates, the installment in that loan will waste your money. So, before you get into save money, you should have to pay off your debt.
By the way, getting all your debt on one bill will make you feel better. So, eliminate your debt and it is the best way to clear up your cash to save money.
#4. Create a budget
When it comes to budgeting, it helps a lot to save money. But, most people refuse to budget. As you create a budget that works for you, it will help to save money, though you are paying a higher rent.
You can use a budget spreadsheet to create a personal budget. Creating a budget with a template can help you feel more in control of your finances and let you save money though you are paying high rent. Create your budget and save more.
#5. Assess your lifestyle and keep things simple
Saving money is so related to assessing your lifestyle. At first, you just have to prioritize the things that matter to you the most. As an example, if you are a person who used to go out for dinner and drinks, with your friends all the time you are spending a lot of money on it. It is a huge money sucker. So, you can cut it off and see how much money you can save from your income.
In fact, if you prioritized what mattered the most, you will didn’t feel any difference in your lifestyle, after you cut down the unnecessary expenses. So, make a list of all your current spendings and organize them from most important t least important. Definitely, it will help you to shift your spending to things that matter most to you while removing the rest that doesn’t matter the most.
#6. Negotiate your rent
Negotiating your rent is all about, the lease renewal negotiation. Most probably, landlords have a habit of demanding higher rent when you renew the lease agreement after a year or so.
Fortunately, nowadays there are a number of ways to work with the landlords directly. So, you can negotiate your rent by discussing it with the landlords.
#7. Use public transport as you can
Using public transport as you can, is a good way to save money from your income. According to the American Public Transport Association, they report that you can save over $10,000 per year on transportation costs. In fact, if you have a place which has located near the city border, near a bus stop or a subway station it is a good sign and you can use public transport most of the time you can.
Just think, if you are having a car, you have to do car payments, fuel, and maintenance. The biggest savings will come in the way of not having a car payment. Not only that, another way of saving is not having to pay for fuel and do not want to worry about the maintenance. Most people are using public transportation today than ever before. Because using public transportation will help to save a lot of money.
#8. Buy low-priced furniture
Before start furnishing, there is a factor that you should consider. In order to save money with higher rent, you can consider buying low priced furniture. This is not mean that you should buy cheap stuff with a crapy quality.
In fact, some people are believing that, if they buy very expensive furniture like coffee tables, beds and other furniture is an investment for life. but, that is not true. Another fact is, all these beds and furniture not gonna be with you forever. So, you can start simply and furnish your new house with inexpensive furniture.
By upgrading your life, you may be able to buy more expensive and fancy furniture later. But, at the start, you can consider buying inexpensive furniture in order to save money.
#9. Cook your own meal
Already you may have experienced going out for dinner, that takes too much money. So, without going out for meals, you can save more money by cooking your own meal at home.
You can go to the market and buy fresh fruits and fresh vegetables and meats that fits your budget. Then, you will be able to make your own meals at home and with time you will be able to experience the profit of it.
#10.Trim Unnecessary Spending
You unknowingly, small expenses can ruin your income. In fact, one of the most difficult aspects of personal finance is figuring out the best way to utilize money.
Many people looking for the ways to cut expenses that are both easy to implement and effective. As the simple ways,
- Put any bonuses into savings
- Make a grocery list before going to the store
- Set a shopping limit
- Cancel entertainment bills
- Clear out unwanted stuff
- Pay things with cash only
- Be grateful for the money you have
- Use budgeting app (ape article ek link krnn plwn neda)
With these simple ways, you can possibly cut down unnecessary spendings in half too. As well as you can save money while paying high rent.
#11. Increase your income
Among all of the points, this is one of the highlighting facts. In order to increase more money, you can increase your income. If you are don’t like to limit your entertainment, this is the best option for you.
Doing a second job will always help you to make extra money. You can enjoy all the things that you want while saving money. Consider doing part-time jobs. Best of all, it often boosts your income and it helps to drop a little into savings each month.
In fact, it is not easy to save money when the rent is high. But, by changing your mindset and with a little effort, you can achieve your dreams by saving money. With the correct way of controlling the finances, you will be able to get the real happiness of saving money.