Rent should not consume more than 30% of your monthly earnings. But, especially if you live in a high-rent mega-city, this is easier said than done. So, how can renters spend a significant portion of their income on rent and still be in good financial shape?
The solution is to live a frugal lifestyle.
Modest living, contrary to popular belief, does not imply a life of privation. It's simply a matter of figuring out how to maximize what you already have while keeping costs to a bare minimum. You'll discover how to identify what you don't require and how to spend less on what you do.
1. Carefully select your location.
The first step toward a more frugal lifestyle is to look for an apartment. You can save a lot of money if you choose an apartment in the appropriate location. Keep the following aspects in mind while picking a location to support your frugal goals:
The distance between your home and your workplace or school.
There is a substantial distance between you and public transportation.
Acceptable travel time
Of course, you should hunt for a job before looking for a place to live. It's not only about being able to pay your rent: picking an apartment based on the location of your workplace will save you time and money on your daily journey.
2. Make a long-term lease agreement.
You have the option of negotiating the lease period with your landlord while discussing the rental agreement. Remember that the longer the lease is, the cheaper it is for you. This is because your landlord will not be required to perform any major renovations, repainting, or furniture changes during that time. Second, by not having to find a new tenant, they will save time and money.
A one-year lease is also an option, as it is less expensive and easier on the wallet. The most expensive option is to pay rent on a monthly basis, which you should avoid.
3. Create a financial strategy
A budget is akin to a road map in that it will help you achieve your financial goals faster. The idea is to create a simple budget that focuses on living a better life rather than a tight budget that eliminates any fun from your life.
Making a list of your financial goals is the first step in budgeting. Then eliminate any expense that isn't helping you meet your goals. Keep track of your spending and get rid of any unnecessary expenses.
You can use one of the many personal finance software programs available. They can aid you in setting and maintaining a budget.
4. Make the Most of Your Living Area
You can split the rent with a roommate.
If you're single, sharing a room and splitting the rent could help you save even more money. This can help you save a lot of money, especially if you reside in a big city with high living and rental costs.
There are a number of online resources available to help you find suitable roommates. Learn what it takes to cohabitate successfully with a stranger.
5. Save money on utilities
Keeping a close check on your utility costs as a tenant is an easy method to save money. Simply turn off the lights, heater, and any other appliances when you leave the house. To save money on electricity, replace your incandescent lights with LED lightbulbs when they burn out.
Take a 4-5 minute shower and don't leave the tap running while brushing your teeth or shaving to save water. Use sweaters and blankets instead of spending too much money on power bills to keep your flat warm in the winter. You'll not only save money, but you'll also be doing your part to protect the environment.