A rented home does give you a shelter and protection but many times, it does not give that homely feeling that owning a home can give. And, it is a fact that once you are able to buy your own house with your own money, it is a different feeling all together. But, buying a new home does require you to invest a good sum of money, and you may not be ready for that yet.
But, if you have a plan to buy a home in future, you can start saving even when staying in a rented house. And, if you are wondering from where to start, how to save money to buy a house of your own while staying in a rented apartment, then here’s all you need to know about.
Ways to save money to buy a new house
I have myself stayed in a rented apartment for long, before finally relocating to my own house. And when I can save money and purchase a house, I am sure anyone can do so. Here are a few easy, but smarter ways to save money while staying in a rented house.
Fix a budget
Unless you have some kind of target to achieve, many times things do not work out. And therefore if you really want to save money to buy a home of your own while staying in a rented house, then you have to have a clear goal of how much you want to save.
Savings works best when you have a budget in mind and therefore it is a must. Now that you have figure-out a budget for your new home, you know how much you want to save, and by when.
This simple trick is going to help you stay motivated and inspired to save certain amount, as per your budget and time frame.
Simplify your expenses
It is very important that you learn to prioritize your expenses and accordingly do the savings. You may select an amount beyond which you will not spend every month and then maintain a tracker so that you are reminded the moment you spend extra.
When you have clearly defined monthly expenses, and you stick to that, you can easily invest the remaining money and end up saving a good amount at the end.
Now, since paying rent is one of the biggest monthly expenses when you are living in a rented home, you should consider it seriously. Try to find a home that does not cost you a lot. Avoid renting a home that is too much expensive. This way you can save a handsome amount on a monthly basis for your future home.
Read the lease carefully
Well, before making any contract with your landlord, it is very important that you read your lease really well. The reason I am saying this is because many a times we are in too much rush and end up signing the contract first and then start having doubts and questions regarding the several terms and conditions mentioned in the house rental lease.
Ideally, this should not be the case with you. You should read everything written on the list very carefully at the very beginning. Do check the following mentioned things:
- Do you need to pay extra fees for the utilities?
- Is water included?
- Is there any parking restrictions?
- Can you sublet?
You need to be very clear about all of these expenses, as these will have an impact on how much you are able to save every month. And, as your priority is to save money, it is important to be cautious while spending every penny, especially when that penny goes every month or recurring expenses.
Negotiate monthly rental (extra expenses e.g. utility etc) smartly with the landlord, and if you can strike an attractive deal, then that will help you save extra, and that takes you closer to your saving goals faster.
Rent during off season
Since, in the summer months, most individuals move, the rents are generally high during that time. So, if possible, avoid looking for a rented home during that time. Instead attempt for months between October to February as that is the off season and you may actually find a rented home at reasonable rates.
Cut unnecessary expenses
The most important thing that you have to do if you want to do some savings is to cut all of your unnecessary expenses. If you are used to leading a very lavish and spendthrift lifestyle, you will have to control that. Like for example, there is absolutely no need to go out for dinner every alternate day or every weekend, instead eat at home.
These small lifestyle tweaks can actually help you save a lot of money every month. Also, reduce the amount you spend every month on buying clothes or other items that you can live without.
Then you can cut the ATM, bank and overdraft fees, underused subscriptions and late fees as well. At the same time, you may negotiate with your service provider for lower prices in the following cases:
- Car insurance
- Internet, Cable, Cell phone
- Home loans
- Credit card and student load debts
In case of credit card or student loans, you may save money by paying them off as quickly as you can, or by refinancing the debt with lesser interest rates.
Negotiate with your landlord
If you are living in that rented home for very long and share a good and healthy relationship with your landlord, then you might just ask him/her for minimum increment on renewal of lease.
Landlords usually do not want to take the trouble of finding a new tenant and want to stick to the old one, especially when they don’t have any issues with the tenant. And therefore, if you have been a good tenant, then your landlord may even consider minor increase in monthly rentals on renewal of lease.
If you have rented a home recently and have not been able to build that bond till the time with your landlord, then at least try to be a good tenant. For that, here are some things that you need to follow:
- Pay your rent on time
- Keep the home and the surrounding environment clean
- Treat the home as your own
- Don’t complain over small things that can easily be avoided
- Don’t disrupt the place or your neighbors.
Share your space
If your landlord is not ready to give you any discounts, then you may move to another rented home where the rent is less. Or, you may even think of downsizing if you do not need so much of space. This is actually not possible if you have a big family, but if you are a couple or if you are single, then you may consider it.
Sharing the space and rent is also a good option to go for if you are single. This will help you save more money at the end of every month.
Avoid spending on decorating
Irrespective of the fact whether you are living in a rented apartment or not, I know most of us like to decorate the space where we live, and that’s a natural tendency. But, when you want to save money to buy your own house, you need to be a little strict on yourself, especially when you have to spend on money on something that you can do without spending.
Since furniture is something you cannot live without, you must definitely buy them but there is no need to invest too much on them. You may feel that you can buy very expensive furniture and then carry them to your future home. But you don’t know how your future home will be like and the furniture you are buying now may not even go with the style of that home. So, why invest so much on furniture from now only.
Well, that does not mean I am asking you to go for poor quality furniture because sitting on them or using them may lead to health issues. So, what you can do is to look for comfort rather than style. It will be good if you go for second hand furniture of decent quality for your rented home. The idea is to find the balance and draw a line.
Increase your income
If you do not want to change your lifestyle entirely, then if you have to save more, you will have to earn more. For that, maybe you can start looking for a switch in job and find a job with a higher salary. If you are satisfied with your present job and do not want to change it, then maybe you can do some part-time job side by side or some side business and make some extra earnings at the end of the day/month.
The idea is to have multiple source of income, when you increase your income and keep the expenses same or closer to similar figures, you will be able to easily save money to buy a house of your own. So always look for ways that help you earn more, and keep your costs low, that’s the best way to save a lot of money to buy a house while staying in a rented house.
Summary
There are many who live in rented houses or apartments but dream of owning a house of their own. It is very obvious because there is more freedom when you live in a home that you own.
But, owning a home is a lot of responsibility. Not only you have to make a big investment in buying a new home but you will also have to invest in decorating and maintaining it from time to time. And on top of that, there are other recurring expenses in the form of taxes and maintenance.
So, it is always advisable that if you have plans to buy a new house, do some savings while staying in a rented house.
I have already shared a few of the best tricks that anyone can apply and save money while staying in a rented house. Basically, you need to make some small sacrifices and cut off your unnecessary expenses or save on things that will not affect your quality of life to a great extent.
Besides that, searching for a rented home which you can easily afford, finding a roommate, investing less in home decorating, trying to increase your monthly income etc. are some of the things that you can do to save more money at the end of every month.
Trust me, most of these are quite simple things and you will not face too much of a problem if you are really determined to save more money. Set your monthly money saving goals and try to meet them diligently.
What else do you think one can do to save money to buy a house while staying in a rented apartment? Which is your favorite trick to save money while staying in rented house? Feel free to share your money saving tips and ideas by commenting below.
And if you have already purchased a house and want to relocate and looking for movers and packers near you, who can help you get your goods packed and moved easily and at cost-effective rates, then you can always use our free quote facility.
And finally, if you found this article to be helpful, do like and share it with as many people as possible.
Until then, I wish you all the best.
