Are you worried about the substantial housing costs you end up with every month end? Being frugal with your money works wonders; it’s what gets you out of debt, builds your savings, and provides you with the financial stability you have been aiming for all this time. When the expense is too high, most people cut down on necessities instead of focusing on the big fish. There is only so much you can do to avoid small expenses. To make a significant change in your expenses, you need to focus on what costs the most, and for most people, that is housing. Reducing the amount you pay on housing is what will help you achieve your financial objectives.
There are numerous ways through which you can cut back on your housing costs, whether you are renting, thinking about buying or already own a house. Here are some of the best tips to cut back on housing costs starting with a few general tips that never go out of trend.
General Tips For Lowering Your Housing Cost
Specific tips or tricks are universal. No matter which part of the world you live in, these tips are practically everywhere. So, before you buy, rent, or own a house, consider these few things to cut back on the cost so that you can effectively move out of your mother’s basement.
Live Close To Your Work
Many working people spend a lot of money on commuting. Some have to wake up way early to make it to work on time, spending hours in buses, subway, ferries, bikes, cabs, cars, etc. Nothing can beat living within walking distance from work. Living close to work has many benefits: you get more free time, more sleep, no transport hassle and most importantly so much saved money.
You could go home for lunch and wouldn’t even have to pay for a cab. Commuting is no fun; it is terrible and takes up a lot of your energy, energy you could use elsewhere. Living close to work improves your life by making it simple and helps cut back drastically on housing costs.
Move To A Cheaper Place
The cost of living isn’t the same in any two places, especially not in the U.S. The rent, land value, tax price, and even the overall cost of living differ so much from one state to another. So, if you find yourself in a financially unbearable living situation, then you might consider moving elsewhere. When we say moving, we are not talking about leaving the state; look for another area.
If you are a renter and do not want to move far from your current address, look for a place that is $100 cheaper, this way, you will still be able to live in the neighborhood, complex, or building. Your lifestyle won’t be affected much, plus you will be able to save $1200 on your annual living expense.
Reduce Moving Expense
You are packing and moving presents the perfect opportunity to get rid of unwanted articles. If you have any furniture item or any other article that you do not wish to carry along, you should sell it; this way, you also cut back on moving expenses. The less stuff you have, the lesser it will cost to have your stuff transported. Most companies charge their clients based on the weightage; however, you can consult different companies to compare the quotes and hire whichever suits you the best.
There is no winner between renting and buying a house. It all comes down to where you live, how long you plan to live in the house, and whether or not you are willing to make a long-term investment. Buying a house is not an option for those who have to move due to their job. Would you mind not buying a house until and unless you plan to live in it for a long time? For those with dangerous jobs and constant moving, renting is the best option; even if you have to move, you wouldn’t have to worry about selling or being stuck.
Most renters believe that because they are renting, the monthly housing costs are way beyond their control; this is not the case. There are numerous ways you can lower your expenses as a renter. If you are new to an area and have not done your research, chances are your landlord will quote a higher price than usual.
Before renting a house, it is always best to compare the prices of a few places in the same area, get an idea about the housing costs in the vicinity, and then decide. If you have been renting from the same landlord for quite a while now and have been a model tenant, you can ask for a revised rent price during renewal time.
Sign A Longer Lease
Always go for a longer lease. Ask your landlord if they are willing to reduce the rent for a multi-year lease. Most landlords will hop on board as multi-year lease offers them income stability and eliminates the cost of finding new tenants. You, as a tenant, wouldn’t have to worry about a sudden rent increase affecting your monthly household expenses—a win-win situation for both parties.