Good morning everyone! This article is contributed by Tina Roth a personal finance blogger at PROFinance blog. She is commerce graduate and form Florida, USA. She loves to write about money and finance management. To know more about her click here. Let me know if you would like to guest post on RFI..
In a recent discussion with one of my friends, I came to know that he pays more than a thousand dollar as rent. I was almost electrified! That was nearly half of my monthly earning. I live in a suburb and pay only $500 and for the sum my friend is spending every month, I would have rented a mini mansion.
Paying too much on renting definitely puts middle-class people in a serious money crunch.
If your renting cost eats up lion’s share of your income, here are a few simple tips to guide you about how to save on housing expenses.
Share your room
The easiest way to trim your housing expenses is to share your room with someone else. However, it is not most suitable as an option always. If you are living in an area where there is high demand for renting, it’s definitely a sensible option.
It is important to know about your potential roommate. Good friends are the best persons to share your room with.
You must read: Planning Your Monthly Household Budget
Move to suburb
Living in a metro city is more expensive. That’s why I have consciously moved to a suburb. You can save a fortune by settling in a country/suburb. Don’t pull a long face as it is a temporary solution and will be in place until you regain your financial stability.
Adjust to small space
A little adjustment will save you more! As a full-time professional, I had no problem to pay for a spacious accommodation but things were not same when I switched to a part-time job to continue my studies.
Move to a flat that has smaller carpet area than what you have at present. It would be much better if you are ready to adjust yourself to a smaller flat in a low-cost locality.
Reassess your insurance and tax
See to it that refinancing fees never use up a larger part of your savings. If you are a homeowner and property tax is pretty high, assessor’s property valuation can be challenged. Contact the country auditor for the process to get started. When you are working on it, make sure to ask about discount offers that you have a chance to qualify for.
Think about mortgage refinancing
Interest rate is affordable. If mortgage has not been refinanced in the last five years, think about it.
You could save a larger amount over your mortgage life just by dropping a few points off your mortgage interest rate. Housing cost can be effectively lowered if you have ways to save on property insurance and tax.