If you’re looking to buy a home, renting might not be your best option. That’s because renting often requires tenants to sacrifice valuable savings for an extended period of time. However, it doesn’t mean that you can’t have your cake and eat it too. After all, there are ways in which you can save money while renting and avoid putting much money into an investment property that will likely only return a small portion of the money that you’ve invested over the long term.
Think about it this way: Buying a house is similar to investing in stock market or other financial instruments. You need enough capital to purchase a house and make up for any initial loss in value if the market falls. Then again, if you choose to rent instead, you’re effectively giving up on that investment until after you sell your rental property and get enough money back from selling it to recoup your initial investment costs.
Pay off any debt
Most people spend a large part of their net income on rent. In fact, the national average is more than 50 percent. And while that might seem like a lot, it’s not nearly enough to comfortably support a mortgage. So what can you do?
Try and pay off your debt before you consider buying a home. One good way to save for a house is by paying off any debt that you have before applying for a loan or buying another property. This will help ensure that you won’t need as much money from your bank account to invest in your new purchase. You’ll also be able to contribute more to your mortgage or down payment when the time comes and you’re ready to buy instead of relying on someone else’s financial input (like the bank).
Use acashback.ly to save on monthly bills
One way to save money while renting is to take advantage of acashback.ly’s cashback services. This website offers a wide range of different ways for you to save money on your monthly bills, including cash back from Amazon, Ebates, and ShopAtHome.
For example, if you make purchases through Ebates, they will pay out part of the purchase price straight back to your account. The great thing is that you can earn this bonus right away — as soon as the next day! You can also get cash back when you buy wholesale with wholesale clubs like Costco or Sam’s Club.
Set up a Stash Fund for emergencies
First of all, you should set up a stash fund in order to cover any emergency expenses. It’s also important to prepare for the unexpected: a broken water pipe in the winter, an appliance that needs fixing, or even just a home repair. You can start this savings account with as little as $100 so that you’ll always have money available for emergencies.
Don’t be afraid to ask for help from your landlord
If you’re renting and looking for ways to save money during your stay, consider asking for help from your landlord. If you live in a city where there is a high demand for rental units, your landlord may be motivated to suggest cutting some corners so that you’re not left with too much of an expense after the lease is up. You might also ask your landlord if they have any incentives or discounts available just for new tenants that are willing to work with them on their needs.
Another option would be to get creative with your living situation and rent out a room via Airbnb or through other similar platforms. This can sometimes net you more cash than renting an entire apartment as it can often cost less overhead like utilities and taxes. And if you’re open to the idea of moving out of your apartment and splitting up the space, this can generate even more money.
Get a roommate or find an exchange program
If you’re renting and want to save money, consider getting a roommate or participating in an exchange program. In these scenarios, you rent a unit from someone else who needs your place for a short period of time. This can be something as simple as a shared floor in an apartment building or for larger properties, like houses, there are real estate investment companies that would help you find and buy such properties.
The idea is to find people who need your space for short periods of time so that you don’t have to spend the money to put down on a property upfront. Renting also has its benefits in the form of flexibility and affordability which allows you to enjoy the perks of owning without having the burden of ownership. Renting doesn’t have to be so costly either- if you pair up with another person, it’s often easier than finding an available rental unit by yourself and negotiating better terms with the landlord.
Take advantage of freebies and cash back offers
It’s not only the cost of buying a home that will put you in the red. Rentals often require tenants to pay extra fees, including utilities, property tax and insurance. To avoid these costs and still save some money on rent, consider freebies and cash back offers Depending on your location, there might also be discount coupons or special deals you can take advantage of.
Take advantage of these offers to reduce your rental fees. For example, if you live in San Francisco, California and commute by car, consider driving for Lyft or Uber instead of taking public transport. If you live close to work, this could mean saving a lot more money on transportation fees than if you took public transport or walked.
The best way to help save for a house is to get started now. The best way to save for a house is to start saving now. The sooner you start, the less you’ll have to work in the future.