Tired of paying rent? A big amount of earning goes into paying the rent every month. How to get rid of this expense? Buy your own house? Shocked, don’t be. The amount you spend after renting in ten years you can buy a house in that amount. But how to save money for a house while renting? Because you pay the amount in rent, you can save that and buy a house. If you don’t have to pay the rent, you can save that and buy a house. That is not possible. Then what to do? Don’t worry. After paying rent, still saving money for a house is possible. How? I will tell you below. Scroll down and run with me.
How To Save Money For a House While Renting
Saving isn’t easy while you are renting, and saving money for a house is beyond thinking. But it’s possible if you do proper saving planning and follow that strictly. Here I will tell you some ways to save money. If you follow them, I hope you can save money in a short time to buy a house.
6 Tips of Saving Money While Renting A House
Didn’t understand what I am talking about? I am talking about what you read, saving on rent. How is this possible? It’s possible in many ways. The first is to negotiate with the homeowner; the second is finding a roommate or supporting paying guests or shifting to another location/small house. Now, let’s know in detail.
Negotiating is good sometimes. But don’t be cheap; make a good relationship with the homeowner. Appreciate him for what he has and what he achieves in life. Tell him you want to be like him; it’s your dream to be a homeowner and be successful in life. Now let him know what benefits he will get after renting you. You will pay on time, won’t do any cheap thing, there won’t be a late-night party, you will stay quietly, etc., if you can make him reduce even $5 consider it as a good amount. You know penny matters. So never leave trying; try to save every penny you can.
If you live alone, you can find a roommate who will share the rent with you. Not only rent, but he will also share the electricity bill, cable bill, internet bill, etc. And if the roommate agrees, you can buy groceries from a retail store, which will help save money.
Shift: If you didn’t find a roommate or the rent is eating up more than 30% of your income, it’s time to think about shifting. A shift in a location where rent is lower or in a small house.
3. Plan a budget
Budget is essential for everyone. It’s like a roadmap that shows you where to spend how much. It helps to track the money. Plan a budget and follow that strictly. List all your spendings for a month and set an amount you want to spend on your essentials. You can also count your total amount of earnings here and then decide how much you should save and how much to spend.
If you are unable to bear the expenses with the amount you have kept spending, don’t add more money to the budget. Instead, cut down some expenses and try to fit the budget. And if possible do save from the spending amount you have kept. It will help you to buy a house faster.
4. Cut Down Expenses
Just by telling you can’t cut down your needed things. Saving isn’t only the thing we live for. We should live happily, and that’s why we do hard work and earn money. I am not telling you to save without eating, going for outings, or save by killing your wishes. You should just be a little more careful and save a little money from your earnings. How to do that without being harsh to yourself? Let’s know.
List down all your priorities expenses in one corner; now make another list of fewer priorities things. I am not telling you to cut down the minor priorities but just spend a little on them. Like if you have a plan of going to the movies at least once a week, it means four times a month. Reduce that number by just one, and visit a month thrice. Will, it hurt you a lot? Obviously not; you can just pass a day by sleeping or enjoying yourself trying something new. Another way is visiting a restaurant, assuming it is also visiting four times in a month. Do the same, make the number three and cook a special meal at home and enjoy having your handmade food.
Now let’s see if we can save some from the priority list or not. We can save a little form here also. As we said before, finding a roommate will reduce the big amount of expenses you have to do. He will pay half of the electricity bill, but the user won’t increase as both of you will use the same room, same light, same fan and same cable, and internet. So it’s the smartest way to save money.
5. A Down Payment Saving Account
Opening a down payment account means a step ahead of buying your own house. When you put your savings in this account, the money will go in the right place, and there won’t be any worry about losing the money at any other expense.
You can track the amount of money you have saved, so it will be easy to know how much money is left that you have to save. And you will get interested in these savings, which means you won’t have to save the downpayment alone.
You can save some less because an amount of interest will be added to your savings. It will make you a little stress-free; it’s like getting support from somewhere. You will feel motivated and will work hard to earn more money and save a little more so you can buy a house sooner.
6. Look For Part-Time Jobs Or A Way To Earn More Money.
Only cutting down expenses and saving a little money isn’t enough to save money to buy a house. You have to look for new ways to earn more money so you can save a little more. You can look for a part-time job or do extra working hours.
If you can, do tutoring. It’s an excellent option to earn money and save a little on groceries or snacks. Or you can take a part-time job in a cafe or a restaurant, which will help you save some groceries for the next month.
How? When you go for tutoring, the homeowners will offer you a one-time meal, or some snacks, so isn’t it saving you a little? When you go to do a job in a cafe or restaurant you can have coffee, snacks, or fast food for free, so isn’t it a little safe? Like this, if you can continue saving though with a penny still one day, it will be enough to buy your own house.
Did you see how easy it is to save money for a house while renting? You just have to find ways and be a little smart and you can save money for your home. After reading my five ways to save money for a house while renting, I hope now you have found the ways, what you need to do now is follow my path and start saving from today, be it with a penny start today.