Moving out of your parent’s house or leaving student housing after college is an exciting yet scary time for young adults. For the first time in your life, you’ll be financially responsible for your well-being. If you’ve done any research, you know that the cost of living is high and continues to rise. If you’re going to survive, you must learn how to make the most of your income and save on the things you need most. Continue reading for suggestions.
One of the most significant expenses you’ll have is rent. Due to the national health and economic crisis, the national rental rates have increased. First-time renters can expect to pay upwards of £1,100 for a studio apartment in London. Fortunately, there are a few ways you can find something more affordable.
Where you live makes a big difference in how much you’ll pay for rent. Renting in big cities or near bodies of water (beaches, lakes, etc.) will cost more than living in the suburbs or smaller towns. Lowering the number of bedrooms and amenity expectations can also help reduce your rent. For example, a one-bedroom apartment with an in-unit washer and dryer will cost more than an efficiency with a community laundry facility.
There’s nothing like the art of negotiation to help you save money on rent. If a landlord has had a vacant apartment for several months, they may be willing to accept a lower offer. You can also offer to pay for minor maintenance and repairs in exchange for a lower rent. If you can provide a service that the landlord needs, you may receive a sizeable discount. For instance, a contractor can repair their unit and other tenants and serve as the property manager or super.
Water, gas, and electricity are necessary to sustain a decent quality of life. Unfortunately, paying for these services often sets renters back several thousand dollars a year. The good news is you can slash those prices significantly.
Shop around for the most affordable service providers, look for rental contracts that include all or a portion of your utilities, or use conservation methods to reduce your usage.
Of course, you need food to survive, but inflation has caused grocery store prices to skyrocket. If you’re going to keep the costs of eating down, you have a few options. The first is to prepare all your meals at home and minimize eating takeout. Secondly, use coupons and shop for sales at local grocery stores when making purchases. Buying generic or store brands is another way to reduce the cost of food. Finally, building a stockpile and reducing food waste can keep monthly grocery expenses down.
Getting to and from the places you need to be is essential. However, the cost of car ownership is expensive. If possible, your best option is to walk, ride a bike, carpool, or use public transportation to get around. This eliminates paying for a car note, insurance, maintenance, and repairs.
If you need a vehicle, you can still reduce the costs. Shop around for the most affordable insurance premium. If you have an older car or live alone, you can save a ton of money by opting for liability or broad form insurance, which can save you hundreds of dollars a year. You can also save on the cost of car ownership by selecting a safe car, being mindful of gas mileage, following the road rules, increasing your deductible, and inquiring about special discounts.
Cut Unnecessary Spending
One of the most fundamental ways to stretch your paycheck further and save on the costs of being a first-time renter is to cut unnecessary spending. Eliminating takeout, shopping sprees, and impulsive purchases for entertainment can save you thousands every year. Making wise decisions like choosing a free streaming service over cable or using your mobile phone hotspot instead of purchasing wifi can also help you save.
As excited as you are about venturing out into the world on your own, you realize it’s a huge responsibility. While the cost of living increases will continue, learning financially responsible and savvy can get you through. By using the money-saving tips listed above, your experience as a first-time renter will be a lot less stressful and much more affordable.
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