How to Save/Budget Money While Renting

If you are like most adults, you would love to find a way to save more money on a regular basis. When you own a home, you may benefit from having a portion of your monthly mortgage payment allocated toward equity. When renting an apartment or home, you do not have this benefit. In fact, you may live on a tight budget and may think there is no way you can save money based on your current circumstances. While it is reasonable to feel this way, the reality is that most people can make a few changes to free up money that could be used for savings regardless of their home ownership status.

Eliminate Wasteful Spending

As a starting point, review your current bank statements. Look for any expenses that are not necessary, such as a recurring withdrawal for a gym member that you have not used in months or a magazine subscription. Then, turn your attention to your regular budget. Consider how shopping for lower insurance rates or switching to Internet-based TV can help you to save money. You may even look for a more affordable town to live in. When you research the best places to live for renters or homeowners, for example, you can learn more about the more affordable areas of the state to live in.

 Shop With Savings in Mind

To save money, you understandably need to curb spending. However, when you do shop for food, clothes and more, always look for savings. With almost all types of purchases, you can time your purchase to benefit from a sale, or you can use promotional coupons and discounts. You simply have to make the effort to plan your purchase well ahead of time and to research them first rather than make an impulsive buying decision.

 Consolidate Credit Cards

Many people have multiple high interest rate credit card debts. Each month, you may be paying your creditors hundreds of dollars in interest. Consolidating this debt into a low interest rate consolidation loan can save you money on interest charges. It can also help you to pay the debt off more quickly.

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Get Another Job

Man people will make the above efforts and will discover that they can free up several hundred dollars or more by following the tips and suggestions provided. However, if you are serious about saving a lot of money quickly, getting a second job is a great idea. With a second job, you will be able to earn more money in the evenings and on the weekends. In addition, because you are working, you will not be inclined to spend money on frivolous things during this period of time.

 Make Lifestyle Changes

Another step you can take to save even more money is to make easy lifestyle changes. For example, you may have a lifestyle that is dependent on fast food. By eating at home rather than at fast food restaurants, you can save a ton of money. In addition, you may even improve your health as a side benefit.

Create Goals

After you have followed these steps, you may have access to a tremendous amount of extra money each month. Rather than spend the money frivolously, make goals to improve your financial life. For example, create a goal to fully fund a rainy day savings account by the end of the year, or open a retirement account and start making regular monthly deposits to it.

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Make a Budget

Now that you have extra money available as well as financial goals that you want to meet, you need to create a realistic budget. Many aspects of your budget may have changed, so be prepared to start from scratch if necessary. Your budget should include line items and regular monthly allocations for your goals. For example, one line item may be for your rainy day fund, and another one may be for your retirement account.

Finding money to save is not easy to do. Each one of these tips requires specific, focused effort on your part to accomplish. However, each tip is reasonable, and each will provide you with significant benefits. Follow through on these action items today to start enjoying their benefits soon.

Linda Gimmeson

Linda Gimmeson is a Career Coach that is passionate about helping others identify their strengths and pursue their dreams. Follow her @LindaGimmeson on Twitter for more career advice.

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