As a renter, you most likely have ambitions of one day owning a home. That said, you should work towards saving money so that you can eventually buy the home of your dreams. If this is your intention, keep reading to see five easy ways for renters to save money and improve their outlook for the future.
1. Don’t Buy More Than You Have Room For
To begin with, avoid buying more items than you actually have room to keep. This is a great tip because it can help you save in more than one way. The biggest benefit is the most obvious one — you won’t be spending money that you don’t need to spend. Additionally, you won’t end up needing to pay for storage to keep any excess items that you don’t have room for. You also can use the money that you save in this way to pay your bills, keeping in mind that 35% of your credit score depends on how prompt you are in making your bill payments.
2. Understand Your Utilities
Next, take the time to properly understand your utilities. Break down each of the specific utilities that you need to pay so that you can plan properly for them. On this note, keep in mind that water heating makes up 18% of your home’s energy costs. Small changes to your daily living habits, such as taking shorter showers, can help you save a considerable amount of money on energy bills. Over time, you may be surprised by how much money you can take off your monthly expenses by being careful with your utility usage.
3. Prioritize Energy Efficiency
Energy efficiency is critical for renters and homeowners alike. Working toward more energy-efficient practices as a renter can go a long way toward helping you save money. It can also help you develop better lifestyle habits that will benefit you when you buy a home in the future. For example, keep in mind that heat lost and gained through the windows is responsible for between 20% and 35% of residential energy use, according to the United States Department of Energy. Making sure to close your windows when they don’t need to be open is one simple way to save money.
4. Make Good Use of Furniture
Be sure to make the most of the furniture that you buy as a renter. Prioritize furniture that you can use for multiple purposes, such as a sofa that has storage underneath its seat. This is a great way for you to save on space and avoid needing to buy multiple pieces of furniture. As a result, you’ll have ample space in your apartment, and you won’t have too many pieces of furniture to service and maintain. The money you save on furniture can add up in the long run.
5. Think About Commuting Costs
Finally, remember to think about commuting costs for daily travel like getting to your workplace. To this end, you can look for an apartment that’s either close to your work or offers easy and affordable access to public transportation. Over time, the money you spend on gas and car maintenance can add up, so the less you need to drive, the better.
In these five easy ways, you can save money as a renter and therefore get considerably closer to buying your own home. The perks that come with being a homeowner should be appealing enough to inspire you to make the necessary sacrifices. Following the tips above will likely prove easier than you think, and you’ll be well on your way to fulfilling your dreams of homeownership.
