Saving money when renting can be hard. Here are some tips to make it easier.
Many Americans dream of owning a home, but that dream is becoming harder and harder for some to achieve. In certain markets, housing shortages are driving home prices up. It also doesn’t help that many people must rent while they save money to buy. Here are some ways you can maximize your dollars while renting and save more money.
1. Don’t spend money on storage.
Apartment living typically means you don’t have a ton of storage space. Especially if you are attempting to save money by living in a smaller unit. Many people store furniture and other items they don’t use regularly in a storage unit when they don’t have the space. However, storage units typically charge monthly fees. Those funds could be used to help you save up for a house. Instead of paying to store items you don’t use, you can donate the items, call junk pick up or sell them.
2. Find out which utilities your apartment covers.
If you are considering different apartment buildings, make sure to compare utilities. Some apartment buildings include water and trash collection in the rental fee while others do not. It’s important to understand what is covered and what isn’t, so that you can choose the most affordable space.
3. Consider a different location.
Location can often impact the cost of rent. The closer to urban centers, typically the more expensive the rent. Consider an apartment further away from the city’s center to save money. The most savings can be had if you take public transportation. If you drive to work, weight the amount of rent savings against the increase in gas cost. You will want to find a location that won’t cost you more in gas than the savings you get from rent.
4. Always make your rent on time.
The last thing you need if you are planning to buy a home, is bad credit. Always make timely rent payments to protect and build good credit. Timely payments also ensures that you avoid late fees.
5. Create a budget that includes your housing goal.
If your goal is to buy a house, it’s important to create a budget that supports that. How much you need to put away each month will depend on when you want to buy and how much the home will roughly cost. You can research housing prices in your area by using sites like Zillow or Redfin. In addition to the mortgage payments, you will need enough money for a down payment. There are other fees like home inspections as well.
6. Leverage apartment amenities.
One of the benefits to living in a large apartment complex are the amenities. Many larger apartments come with gyms. You can ditch your gym membership and workout for free at your apartment gym. If your apartment has a pool, you won’t need a club membership. Some apartment buildings also have movie rooms. Book the movie room instead of going out to the movies.
Saving up for a house is no easy feet these days, but you can do it with a little financial savviness. Create a budget that supports your goal to be a homeowner. Do the research before you rent, to find an apartment that fits your budget.
If you need personal loan funding, BrighterPays can help. You can request up to $10,000 to consolidate high-interest debt and pay it off faster or use funds on other expenses. Learn more at BrighterPays.com today.
This post is not intended to be a solicitation for a loan. BrighterPays provides these blogs for entertainment and informational purposes only. Remember to consider all your financial options before making any decisions related to credit.