Renting has its perks: you’re not tied down to a 30-year mortgage, maintenance issues aren’t your problem, and you can pack up and move at any moment when you are ready for a change. However, being a renter doesn’t mean you get to bypass financial planning. There are plenty of smart money moves renters can make which I have covered below.
Start with a Budget That Works for You
Let’s get real first and talk about the budget. Renting gets quite expensive, especially when adding in utilities, internet, and all other bills in addition to the monthly rent. You want to find out how much of your income goes toward housing costs and work your budget with everything else around that.
A good rule of thumb is the 30% rule: spend no more than 30% of your income on rent. But, hey, life isn’t always that simple, right? If rent eats up more than that, you may have to cut back on discretionary spending, such as eating out or splurging on things you don’t really need. The key is finding balance and not stretching yourself too thin.
Protect What’s Yours with Renters Insurance
Here’s the thing most people don’t realize until it’s too late- your landlord’s insurance doesn’t cover your stuff. If there’s a fire, flood, or break-in, you’re on your own unless you’ve got renters insurance. And here’s the best part- it’s way cheaper than you might think often than not, less than the cost of a monthly Netflix subscription.
Renters’ insurance, like coverage offered by Lemonade renters insurance with policies starting at just $5/month, is a quick and easy way to help protect not only your stuff but, in case of an injury in your apartment, it could even protect you. Renters insurance is like a safety net that’ll kick in and help if there’s loss or damage from or due to designated “perils,” which include theft, fire, vandalism, certain types of water damage, and more, specifically listed in your policy.
Build an Emergency Fund
Well, we all know how life is unpredictable. Maybe when your rent goes up in one moment, or maybe you lose your job, and your car has chosen just about the most opportune time to start breaking down. That’s where the emergency fund would come in.
Save as a renter, three to six months of expenses if you can. But start small if you have to just save whatever you can each month. Even $20-$50 will add up eventually, and you will thank your lucky stars when the sky starts falling.
Make the Most of Your Space
One underrated money-saving tip for renters? Well, make the most out of the space you’ve got. Whether you’re living in a studio, a one-bedroom, a two-bedroom, or in a three-bedroom apartment-you name it-being smart about how you use your place can save you money.
For example, invest in multi-functional furniture- a bed with built-in storage or a coffee table that doubles as a desk. Decluttering and organizing can also help you avoid buying things you already own but can’t find. And if you have an extra room or even just a couch, consider renting it out on platforms like Airbnb-if your lease allows it brings in a little extra income.
Negotiate Your Lease
Think you’re stuck with the rent price your landlord is offering? Think again. Negotiating your lease won’t work in every situation, but it’s at least worth a try. Next time your lease is up for renewal, research the rent prices in your neighborhood. And if you discover similar units are renting for less, as a negotiating tool, ask your landlord for a reduced rate. You may not get it, but sometimes you can negotiate perks such as free parking, upgraded appliances, or an extended lease with no rent increase.
Save on Utilities
Utilities can sneak up on you- especially during those extreme-weather months when you’re blasting the AC or cranking up the heat. The good news? There are a few simple ways to cut down on those costs.
Invest in energy-efficient light bulbs like Samsung A19 or Philips A21, turn off devices when not in use, and try to be aware of how much energy you use. If you pay for the water bills, just fix the leaks and take quicker showers. These little things, given time, make for the biggest savings.
Invest in Yourself
Being a renter doesn’t have to mean putting your larger financial goals on the back burner. In fact, now could be the perfect time to invest in yourself. Take a class to further your career skills, start that side hustle, or begin building a small investment portfolio.
All the money you save not having to deal with homeownership costs-property taxes or big repairs can be funneled into things that grow your financial future. Even small steps, like contributing to a retirement account, can really pay off big time in the long run.
Don’t Forget to Treat Yourself
All this talk of saving and budgeting doesn’t mean you can’t have a life. It is okay to splurge sometimes but in moderation. A night out with friends, personal time on a weekend, or adding something into the living space you wanted for some time-rewards for being financially responsible will get you through
Final Thoughts
It is not just about finding a place to live; it is also about making smart financial moves that set you up for success. Budgeting wisely, taking care of your stuff with renters insurance and thinking about the future you can take renting from no beginning to a stepping stone toward your bigger goals in life.
So, what’s your next money move? Whether it’s the lease negotiation, setting up the emergency fund, or being more cognizant of the way you spend cash, each step counts. Here’s to living smart and saving smarter—one rent payment at a time.