Whether you’re anticipating an upcoming move or trying to be conscientious with your current residence, keeping a firm grasp on your finances is an essential step toward a happier life at home. With rental prices on the rise, you might be feeling like the comfortable cushion you once had is dwindling by the day. And at this point, it might seem like a cycle you can't escape. But don't despair! By thinking proactively about the day-to-day moves you can make, you can help build (back) your savings and create a financial outlook you can feel good about.
This is a guest post by Upstart, an artificial intelligence (AI) lending marketplace designed to improve access to affordable credit while reducing the risk and costs of lending for their bank partners.
3 Ways to Conserve Funds While Renting
Looking to boost your financial situation as a tenant? Here are three tips to help save money while renting.
Take Control of Your Spending With a Budget
Start off by creating a sensible budget. Without one, it can be difficult to manage your money and keep track of expenses month to month. A common pain point with renting is that you’ll be paying more in the long run, because you’re not retaining any equity in a home you own. While there is some truth to this, renting the right way—by utilizing a budget to hold yourself accountable—can help you save money over the course of your lease.
Your budget should account for all of your monthly expenses: rent, utilities, food, bills, transportation, and any other recurring charges (Hulu, anyone?). If you’re renting a home, be sure to account for any seasonal expenses that might apply, such as weatherproofing or snow removal. Your property manager may cover these costs, but you should be prepared to pay for them yourself just in case.
Take note of any outstanding debts or liabilities that may be affecting your financial health. This can include things such as credit cards, student loans, mortgage payments, etc. Having a solid understanding of how much you can put toward reducing your debts each month will give you a better idea of how much you’re able to allocate toward your living budget and savings.
Having trouble nailing down a budget, or feeling like you need additional guidance? Reach out to a financial advisor for assistance with your money-saving efforts.
Consider Renting Your Home Furniture
Alongside rising rental prices, the cost of furnishing a home has increased significantly as well. Moving has become more expensive, too, and in certain situations, it may not be feasible to transport existing furniture between homes. Think about alternative solutions and consider all of your options for furnishing your space without breaking the bank.
For example, you can sell your existing furnishings and use the funds to buy second-hand or to rent furniture for your new space. This will allow you to get rid of old furniture that you no longer need or don’t have room for any more. Second-hand furniture won’t carry the high price tags that come with brand-new furniture. But what if you don’t want to be tied to ownership and management of your furniture at the end of your lease? Consider renting instead.
Renting offers you the chance to find high-quality, premium furniture at a fraction of the cost of buying new. Choosing to furnish in this fashion not only provides an economical solution but an eco-friendly one as well—serving as a sustainable way to make your space feel like home without the waste. Plus, the money you've saved as a result of renting can be allocated to other areas of your budget (Hulu with no ads, anyone?).
Maintain Your Financial Footing
Make decisions that are in your best interest now... and in the future. If you’re in good credit standing, with little to no liabilities and the ability to maintain a positive spending balance, use that freedom to allocate more money to your savings each month.
On the other hand, if you find yourself struggling to pay off existing debts or on an exceptionally tight budget as is, there are options available to assist you in creating the perfect home environment. If you’re worried about finding room within your budget to account for larger expenses, the use of a personal loan can provide you with the funds to make purchases up front while still working to improve your financial standing. A resource or loan like this can allow you to use the funds however you may need them, like putting them toward consolidating debts and shifting your financial outlook for the better.
The most important thing to remember is that the rental lifestyle can change in an instant. This is why being financially prepared—and maintaining your financial situation—will be extremely important if you want to maximize savings while renting. Again, if you are having trouble getting your finances under control, or if you just want some help, a financial advisor could be worth looking into.
With thousands of high-quality, sustainable products at affordable prices, Brook makes it possible to breathe life into your home while working within a budget. We’re proud to offer our customers the comfort and flexibility they need, while maintaining our commitment to providing budget-friendly, eco-conscious furnishing solutions. Whether you’re looking for the perfect piece to round out your home or starting from scratch, we have the styles and expertise to meet all of your furniture needs.