Accommodation is the largest drain on our salaries, and changing in order to save money is something very personal and totally dependent on where you’re at in life. Some find it extremely easy to make sacrifices and give up a bit of privacy and convenience, and some figure they work hard and deserve a certain standard of living. If you have a spouse, children or pets, your choices are more limited And these factors have to be considered when choosing a balance between saving money and living a reasonable quality of life.
My number one rule (and I have a 800 credit score), is to always live WELL BELOW YOUR MEANS. And yes, I’m yelling! Honestly who needs the stress of owing money in their life? Not me!
Being able to easily make your payments, taking pride in what you DO have, and the ability to squirrel away savings creates a huge sense of satisfaction and mental well-being. Having financial resources creates freedom and takes away one of life’s great stresses.
Let’s examine some money saving tips for our biggest burden. Not everything is going to suite your personal situation, but if I can help you lower your expenditures and reduce your stress then that I call that a great success! Oooh, that rhymes.
Consider sharing –
I know this is a lot to ask and a huge no no for many people, but listen. How much time do you really spend outside of the house? If you work full-time and have have activities away from your living space, then why are u paying full price for a house/apartment that stays vacant most of the time? Sure we all love our own space, but mentally if you can shift from a whole house mentality down to a bedroom then what’s stopping you? Set up your bedroom with a TV, computer and entertainment system. All you have to do in the public space is use the kitchen, and who knows, maybe you will like your new roommate and create a friendship. Just do your research really well first and make sure your lifestyles are compatible.
Like most financial deals in life, rent can be negotiable. Not so much in high demand areas, but in most places you can come to an agreement with the landlord if you sign a long lease and if you have a good reputable background, you have some bargaining tools in your arsenal.
Fight rental increases-
Urgh! I hate when they do this! I flat our refuse to be increased and taken for a ride every lease resigning. If this Happens to you speak to them asap. The sooner the better and tell them it’s unacceptable and it’s not affordable at this time. I’ve always been able to get it taken down to the original monthly price and if not then only a few dollars a month increase. Stand up for your rights and remind them that it costs them money to have an apartment sit empty.
P.s private landlords tend not to do this and are more flexible and understanding.
Look on Craigslist –
I know it has a stodgy reputation but I’ve seriously found some great deals using this method. If you have the time or are just looking around and thinking about moving, put a ‘housing wanted’ ad up stating who you are and what you’re looking for. You might get some good offers. Also use it as a research tool to gauge current prices in the area you are considering moving too. Just please be aware of scams and don’s send money to anyone, or sign any paperwork unless you have seen the place an know for certain it’s legitimate.
Consider work/rent exchange-
This is a good option for anyone with trade skills or some free time to act as a caretaker. Approach a landlord of a house/apartment and offer to fix the place up in Exchange for cheap rent. Also look at advertisements for apartment caretakers/managers. This can range from reduced rent, free rent and even a salary depending on how much work is required. Either way it’s a good deal for most people.
Move further out-
This is a tough one. What You might be saving in less rent, you will be paying in time and transport but in some cities this is a viable option and can result in a 30-40% reduction in your monthly housing expenses. Research your options and weight the pros and cons.
Owning and Mortgages
Owning your own home is a dream and one that i have not had the privilege of. I’m still too much of a transient and as a single gal with no family or ties anywhere, I don’t even know where I will eventually end up. If you are living the American dream, here are some simple ways to save on your mortgage that have helped my friends and family.
Get a property valuation done on your house and find out what it’s really worth. This is really helpful especially if you feel that the market has dropped in recent years. Not only does this give you a better bargaining position, it can also help you reduce yearly property taxes which cost thousands of dollars.
Make Extra Payments –
The power of compound interest is wonderful when it’s on your side, and your worst nightmare when its not. Some brokers allow you to do pay off your loan faster in an attempt to reduce interest payments and some don’t. If you are in the market for a new mortgage product, definitely make sure you can do this, but compare the huge benefits of variable length and variable payments with no payout penalty to current interest rates and other factors effecting your loaning options. An extra $1000 a year payment can reduce your loan by an astounding $40,000+ over its lifetime. So worth it!
This can be a HUGE cost saver, especially when there have been dramatic changes with the economy and interest rates, but it does cost money to do it. It’s up to you to do your research and weigh the costs of refinancing with your current mortgage plan over a year AND over the variable length of the loan.
This won’t suit everyone, but if you find yourself traveling a lot for work, or spending weekends away with friends and family, consider listing your house or apartment on websites for short term stays. This can be a very profitable way to increase your earnings by a few hundred a week depending on what you have to offer and if you don’t mind people using your space when you are not there. Just remember to take all valuables out and abide by the listing guidelines. I even know people who rent to AirBnB full time and use that income to fund their extended travels around the world. Another added perk of home ownership.
So there are my tips on how to save money on accommodation. Don’t ever be afraid of change, embrace it and think of it as a new adventure and a page to turn in life. Always talk to people, find out about their living arrangements and what they are doing, ask questions, do research and speak to finance professionals. We are so lucky to have the internet and the wealth of knowledge it brings to our lives…Use it to your advantage and have fun saving! 🙂