Housing can easily make up one of the biggest portions of your household budget (25%-30%). If you are looking for areas where you are able to save more money, housing is a great place to start. Here are a few great ways to save on housing expenses to put more money back into your budget.
Ways to Save Money When you Own Your Own Home
- Refinance. Shop around, but with fluctuating interest rates or even changing the type of mortgage can save you some serious money.
- Rent a room(s). If you have a spare bedroom or two, why not capitalize on it and bring in some extra money!
- Moving to the 'burbs. Typically speaking, the further you move away from a metropolitan area the cheaper the housing becomes.
- Raising your insurance deductible. Having a higher deductable means a lower monthly payment. While this can be a simple way to save money, make sure you can afford the deductable should the need ever arise.
- Live in an Investment Property. Finding a great investment property to live in while you renovate/flip it can be a great option if you are handy and live in the right market!
- Find a place with lower taxes. Property taxes can vary by area. Do your due dilligence and check around to see the difference in property taxes for the different neighborhoods in your city.
- Move to a smaller place. You'd be surprised about how much you really need, check out smaller housing options to potentially save you money.
- Move to a cheaper part of the country. If you aren't fully committed to your city, why not consider moving to a place with a lower cost of living that allows your money to stretch a little farther!
Ways to Save When You are Renting
- Get a roommate. Having a roommate not only saves you money on your rent, you can split the costs of your utility payments, too!
- Move to a more-affordable place. Rents can vary tremendously depending on the age and location of the rental property. Shop around. Most neighborhoods have lots of rental options.
- Negotiate. Rent is negotiable. If you've always paid on time and you are responsible, your landlord may be willing to lower your rent to keep you as a tenant. Call your landlord today.
- Offer to pay up front. Much like paying your hospital bill on cash, paying cash for a car--- cash is king. If you can afford it, most landlords would be happy to have all the money up front, rather than risking other issues down the road.
- Sign an extended lease. Much like the offer to pay upfront, this can be a great negotiating point for lower rent as it can be a win-win for both the landlord and you!
- Move in With Your Parents. Sure it may not be glamorous or nearly as fun as living with friends or even alone, but this can be a great option to seriously put some cash away!
- Become a Nomad. Camping, RV Parks, Boat Living and more equals cheap living. Even better if you can do this while renting out your house!
If you are looking for more ways to cut expenses, check out this post with over one hundred ways to save money!
Do you have any tips on how to save money on housing?