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Tenants need to shoulder a number of expenses every month. For those paying monthly rent, saving money and budgeting are top priorities. However, without a solid guide coupled with the increasing cost of living and other market factors, saving money and budgeting can seem an impossible undertaking today.
Sharpening their financial knowledge and exercising financial discipline can help tenants save money and develop a viable budget plan. Here are some nuggets of wisdom on how renters can save money despite all the odds.
Keep Your Energy Consumption in Check
If you’re complaining about your electricity bill, it’s high time you pay more attention to your energy consumption. This task is a matter of discipline, which means it’s all on you. Many of us consume more energy at home, consciously and unconsciously.
For instance, leaving the television, light, and electric fan on for long periods of time can eat up a significant amount of electricity. Moreover, continued use of inefficient electrical devices like incandescent light bulbs can contribute to your high electricity bill.
Besides reducing your electricity consumption, you should also make it your goal to conserve water. Make sure to shut off the faucet while you’re brushing your teeth, and avoid spending a long time in the shower. When you’re away from home on vacation, you can turn off the main water valve to ensure you're not wasting water.
Know the Difference Between Wants and Needs
Almost all of us wish to save money and be wiser in our budget. It's a thing that is easy to imagine but hard to apply in real life. If you fail to distinguish between your wants and needs, you can’t achieve your goal of saving money and creating a healthy budget.
For example, having a strong desire to buy the latest iPhone on the market. Most probably, you only want to have that smartphone to look cool with your peers while you have several bills you need to pay. If you don’t have enough money to pay for that super-expensive phone, be wise and choose to pay your urgent bills.
Yes, it’s not always wrong to treat yourself, but you have to keep it in check. You can adapt the 50/30/20 rule to avoid spending a huge part of your money on luxury goods. This rule means that you spend 50% of your earnings on expenses like rent, insurance, and utilities, 30% on your emergency fund or savings, and 20% on your entertainment, hobbies, gas, groceries, etc.
If you’re a first-time tenant, you can consider using second-hand things and furnishing your rental unit little by little. Don’t splurge on new and costly furniture pieces and appliances.
Prepare and Cook Your Meals at Home
You can save more money if you opt to prepare and cook your food at home instead of eating out at restaurants or ordering fast food. If you don’t know how to cook, learn from video tutorials online. I’ll tell you that you’ll surely love the art of cooking.
Visit the nearest market in your place to buy some groceries for ingredients. The advantage of cooking your own food is that you can cook some to eat at home and bring the rest of it to work or school. You can also cook a batch of your favorite meal and freeze some of it for later.
Get a Roommate
This tip will probably suit those tenants who are students or working. Also, if your rental unit has enough space for another roommate, you can call someone in need of bed space to share the room with you and split the rent. This way, you can save money, and you'll have someone in the room to drive away your loneliness.
However, if you don’t like having a roommate, you can choose a rental unit that’s smaller and more affordable. Always choose the practical side of life.
Choose a Rental Unit Near Your Workplace or School
Make sure your condo or apartment is near your workplace or school to save money on transportation. Just calculate how much you spend on gas and public transportation every month! It’s more advantageous if you can just walk or bike to your place of work or school because public transportation and gas are pricey nowadays.
You also consider if your rental unit is near public facilities, such as a hospital or park. When choosing a condo or apartment, you have to factor in the location.
Takeaway
Make it your goal to save money and create a sound budget, especially if you’re renting a condo or apartment. Always keep your spending habits in check and prioritize your needs over your wants. Be practical in your financial choices because having money is freedom nowadays.
Lastly, make sure to educate yourself on how to be financially healthy. Free resources on this subject are available online, and there are also in-person seminars about this matter.
