Can You Save Money While Renting?

When you think about renting the thought that it can end up saving you money is a strange concept. Many people would rather own than simply rent a property. This is usually because most people feel that if you have to pay a monthly bill on a property that you do not own, then it is like flushing money down the toilet. The truth is this is not always the case. There are definitely a number of pluses to owning your own home, such as building up your equity, and of course beginning to pay down your loan. Although, for some, renting an apartment can actually help them save money.

When you spend your money on your monthly rent as well as bills for electricity, plumbing etc. you will be wasting money that could have been spent on your new home. Although if you purchase a home now you will probably have to do a thirty year mortgage, which means you will have to pay large amounts of money in interest over the years. This is especially true on thirty year mortgages, or mortgages with high interest rates. The amount of money you will be able to save every year while renting may help you to reconsider renting.

The concept of renting a small apartment so that in the future you can eventually save up to buy a bigger house is not exactly a new idea, but not a lot of people are willing to make the sacrifice. If you are willing to get an apartment that is very small it may help you to save up for your house that much quicker.

The square foot of the apartment you plan to stay in is how your rent will be calculated. If you have chosen the area you plan to find a rental establishment, then the cost per square foot should be the same for each place or very close. So now you can definitely save money when buying smaller. If a small apartment is all right with you, then you can put together money for your future house rather than paying for a larger apartment.

Your monthly rent will not be the only expense you will have. You also have to pay your bills as well as food costs and entertainment costs such as renting movies. Food costs add up quickly especially for those eating out frequently. Most, if not all, apartments come with a complete kitchen so you should try to cook at home to save money. Renting movies can be a great release for you to enjoy, but be wary of the costs associated with renting videos. You may find you can save money on renting by signing up for a mail-order video service. A mail-order video service is also a great way to avoid late fees.

If you plan on buying new furniture and new items to decorate your apartment, it will be hard to put money aside for your future home. Organizing your monthly costs and expenses can help you to stay on track. There are a number of ways to cut down on your total monthly living costs such as canceling or downgrading cell phones and prescription plans. Cell phone charges can really add up and you can receive extensive charges for going over your minutes. Insurance plans can also be adjusted to find the lowest price plan available to you. The typical solution to saving money with your insurance plan is to combine your renters insurance and your car insurance with the same company. Most companies will offer a price reduction for those who want to combine their services. Even canceling or adjusting some of these things could save you a lot of money in the long run, and get you that much closer to owning your own home.

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