Hi! JJ Childers here. In today’s episode of Monday Morning Mentor, I’ll be discussing some more information focused on Money Saving Strategies.
Today we’re going to talk about housing. Having a roof over your head and all of the costs associated with it can take out the largest chunk of your monthly budget.
Housing is not just the house or apartment you live in. You have to take into account your utilities, furniture, appliances, maintenance, and repairs. People often overlook areas where they can save money in this category.
Rent can take up a sizable portion of your budget. Many people consider rent to be a fixed expense. That’s not necessarily true. There are some things you can do to cut it down in size.
For instance, you can move to a lower-cost rental unit, even though it may not be as nice. It may be smaller or lack a private parking space, or be in a less popular locale. If you can live with these tradeoffs, you could save $50 - $100 per month on your rent. The less you spend on rent, the more you can save toward buying your own home.
Another option would be to share a rental, if possible. Living alone has its benefits, but financially speaking, it can be a luxury. Many people choose to rent a larger place with roommates. Your rental cost should go down considerably, and you'll get more home for your rental dollar.
But, as you can imagine, there are some drawbacks to this situation, too. You have to be able to share your space and you'll need to give a little in some areas.
Another strategy is to negotiate with your landlord for the best possible rental rate especially in a “soft” rental market. You have more bargaining power than you’ll ever realize.
But the best option is to buy your very own a house rather than a rental. Compute how much you can afford to spend monthly on a home by figuring your other needs first. Although real estate can be a good investment, it can also eat up a great deal of your discretionary money.
Have you thought about refinancing your mortgage? This step may seem like common sense, but many people don't keep up with current mortgage rates. If interest rates are quite a bit lower than when you purchased your home, it might save you some money to refinance. Find out what you will save BEFORE you sign anything, though.
Until the next episode, be sure to stay focused on your finances!
