Whether you are renting a room, an apartment or a home, a well-developed savings plan should always be a priority.
Not everyone around you has the financial means to own their own place; we’re all in the same boat of saving up to buy our dream home.
If you are considering buying your own place, there are many ways that you as a renter can start saving to get that first deposit down and prepare yourself for the adventure that is owning your own home!
Here are a few of our own top ways for renters to save money:
Tip #1 – As the old saying goes…
Location, location, location!
There is a reason why they say it three times: it cannot be emphasized enough!
- If you want to live in the heart of a city, apartments will be more expensive and you might have to consider swopping the car for public transport.
- On the other hand, if you want to live outside of the city (aka suburbs), you might find larger properties at a cheaper price.
Tip #2 – Set realistic goals
The first thing that you should do is create a list of what you want, but be realistic about it.
- If you aren’t renting yet, you should decide what it is that you can afford and what it is that you are willing to spend every month.
- If you are already renting, however, this can become challenging as you already have an expense every month.
Having said that, if all your money is going to rent, then it is time to reconsider the place where you are living and perhaps start making some important changes.
Tip #3 – Lease agreements
If possible, consider signing a lease agreement over a longer period of time.
After all, most landlords want to know they will have reliable tenants and they will be more willing to give a good price to those who are planning on sticking around for a while.
Tip #4 – Consider a roommate
A great money-saving idea is to bring in a roommate to help share the cost of rent each month.
And, even if your apartment is just a one bedroom apartment, you can consider turning a den or a small alcove into a makeshift room for your roommate.
Alternatively, you can buy a sleeper couch and your roommate can turn the living room into his own room. This can help both of you save some money.
Tip #5 – Cut utility costs
If you are in charge of covering the costs of electricity and water, consider saving where you can.
You can change to energy-saving light bulbs (LED) and only keep the lights on when you are in that specific room.
Tip #6 – Save some space and earn some cash
This can be a big help if you plan on moving soon and you want to take as little with as possible.
Sell some of the things that you don’t want or that you don’t use anymore. Perhaps you could use an online sales website to post your items and connect with people who are willing to actually pay for those things you don’t want anymore.
Of course, you can also have an old-fashioned yard sale!
Tip #7 – Make sure you get your rental deposit back
Many renters seem to forget about the rental deposit, especially if they have been living in a place for a long time.
Renters are often told that they can’t get their deposit back because of whatever lame (illegal) reason!
Bottom line: this ‘cash bonus‘ can really help you in adding to your deposit at your own place, so it is important that you get that back seeing as you are entitled to it.
As you can see, there are many more ways in which you can save money while you rent! So, time to start researching some of them and you will be one step closer to owning your own home one day!
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