Rent can be a significant expense, but there are ways to save money while renting. Budget wisely, consider more affordable neighborhoods, negotiate rent, and explore subletting. Save on utilities by being mindful of usage and make simple DIY repairs. Pay rent on time to avoid late fees and reduce transportation costs by carpooling or using public transit. These strategies can help renters improve their financial well-being.
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“What are your tricks to save money?”
(Original question on Reddit)
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With rent already being so expensive, saving money can be challenging. However, there are several money-saving tips and tricks for renters to consider:
Budget Wisely
To ensure you don’t overspend, create a monthly budget that outlines your income and expenses. This budget should include rent, utilities, groceries, and discretionary spending. Stick to it to avoid overspending on things you don’t need and can live without.
Find more affordable places
Consider exploring different neighbourhoods and comparing rental prices if you have the opportunity. If you find an area that still meets your needs and offers lower rent, it might be worthwhile to consider moving there. Additionally, don’t hesitate to negotiate with your landlord for a better rental rate. Also, if you work remotely, consider moving out to cheaper locations so you can work from home and save a lot in rent.
Keeping flatmates
Rent is most likely your biggest expense, so to reduce that, consider renting a room out to others if possible. This can significantly reduce your own rent and utility expenses. However, be sure to check with your landlord before subletting or bringing in additional tenants. Having flatmates can be a practical way to share costs and ease the financial burden of renting.
Utilities
Be mindful of your utility usage. Turn off lights, unplug devices, and use energy-efficient appliances to lower electricity bills. In the long term, this can help save hundreds of dollars. You can even change your electricity bulbs to energy-efficient ones to reduce your monthly electricity bill.
DIY
If you need to make small repairs around the house, try to learn how to do it yourself before hiring a professional. You can typically search for the solution on YouTube or Google first and try doing it yourself, as professionals will charge you a hefty fee even for small repairs.
Other tips
Some other tips to help you save money are paying your rent on time to avoid late fees, which can add up over time. Also, transportation is a big expense nowadays with fuel prices rising. So take public transportation where possible and carpool with other workmates or take turns driving. This way, you can reduce fuel expenses significantly, saving you money in the long run.
By following these tips and consciously managing your expenses, you can effectively save money while renting and improve your overall financial well-being.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
