3 Tips to Help You Manage the Cost of Renting while Trying to Save for a Down Payment
For a lot of people, one of the biggest concerns with renting is being able to afford a nice place while still putting enough money away to build up a down payment for the purchase of their first home. Although this can be a stressful task, it is not impossible. Here are a few great ways to manage the cost of renting. While still putting money away for a down payment.
Set a Goal and Track Your Expenses
Realistically without a deadline, a goal is simply a wish or a dream. Something that you would like to do. Set a goal – set a deadline for when you want to be able to provide a set amount of money for a down payment. Often, it helps if this is broken down into smaller goals – but we will touch on that later. By setting your goal you will be able to see how much money you need to set aside each month in order to reach it.
Although managing all of your expenses sounds quite simple,it is an aspect of money management that tends to top a lot of “areas to improve” lists. After all, if you don’t follow the relationship between what goes out against your income, there will be cash-flow eventually be problems with your cash-flow. A great way to start is by saving and recording a month’s worth of receipts for utilities, groceries, memberships, car, debt repayment, medical costs and miscellaneous items. Compare this with what you are actually making.
Staying Social
If going out to see live entertainment and shopping is a big part of your socializing, consider getting more particular about how you spend your free time. Having friends over to watch a movie or skipping some bands and performances that come to town in favor of the ones you really can’t miss might be disappointing at a time, but will help trim your entertainment budget significantly.
It never hurts to look into coupon websites, and websites that promote cashback offers via online shopping to also help your budget. Websites of this nature will provide you with money back on each of your online purchases – and when you are already looking for products that are on sale – you can really benefit.
Eating Right
What you eat and how you eat it can be an expensive category in anyone’s budget. Think about it, are you going out to eat a lot of the time or shopping at high-end grocery stores? Reducing your frequency of either activity can definitely save your rental home costs. And while cooking at home almost always saves money, if you’re in the habit of loading up at expensive health food stores, this may not actually be the case. If you are determined to continue eating organically, consider buying organic at a regular grocery store that has less expensive prices.