If you’ll be staying in a specific location for a few years and aren’t financially ready to buy a home, renting an apartment is a good option. While this may be more manageable and practical, it also entails some initial investments. For example, you’ll need to pay a two-month deposit and one-month advance equivalent to the monthly rental fee before moving into the apartment. Having said that, it’s a good idea to set aside some money to settle the payment. You can also look for a financial institution that provides an online loan Philippines-based residents can avail of if you need additional funds.
At the same time that you’re renting a space, you might also be preparing to purchase a home, and you can use the time of your temporary living arrangement to save up. As such, making smart financial choices can ensure you achieve your dream home quicker.
If you want to learn ways you can keep expenses at a minimum, here are five budgeting recommendations you can do while renting an apartment.
Carefully Select Your Apartment Location
One of the best ways to lower your living expenses while renting is by carefully considering your apartment’s location. You need to assess the distance of your apartment to your place of employment and public transport hubs as these could affect your daily transportation expenses. As an example, if you rent an apartment that’s about a walkable distance from your workplace, you can skip public transport altogether and save some money. Additionally, walking to and from your apartment is a great form of exercise.
Also, being close to transportation hubs gives you the option to look for more affordable apartments. After all, living close to city centers often means higher housing costs compared to living a bit farther. So if you choose an apartment located farther than the metropolitan area, make sure you’re near transportation hubs so you won’t have to worry about your daily commute while saving money.
Consider Having a Roommate
Another cost-effective tip when renting an apartment is to share your space with another individual. If you’re single, you can look for a roommate so you can share the living costs. This can result in considerable savings, primarily if you’re residing in areas where there is a high cost of living and rent.
If you aren’t comfortable sharing a space with a stranger, you can ask friends or colleagues who might want to split apartment rentals as roommates. Just inform your landlord about how many people will be residing in the apartment. Some landlords might have a limit on the apartment’s occupancy for health and safety reasons.
Create a Budget
Apart from your apartment choices, creating and keeping a budget allows you to manage your finances. Whether you’re saving up for a home or other big purchases, having a specific budget can help you reach your money goals faster. When creating a budget, it doesn’t have to deprive you of fun things. It’s about coming up with a manageable monthly budget that suits your lifestyle and income.
To achieve this, take note of your financial goals. Assess your usual expenses and remove anything that may be hindering you from reaching your objectives. Then, see what unnecessary costs you can do without. For example, you can cancel a cable subscription if you don’t maximize it and prefer other means of entertainment such as video or music streaming apps.
Prepare Meals at Home
Dining in restaurants all the time can be very costly. If you want to save up on food expenses, prepare meals at your apartment. Since most apartments come with at least a basic kitchen, this will be something you can do even if you aren’t a culinary master. There are tons of simple recipes you can follow from cookbooks or online resources.
When it comes to getting a cooking appliance, opt for something that can perform multiple functions. This saves you from making several purchases and can be very beneficial if your apartment has limited kitchen space. For example, an air fryer can serve as a roaster, toaster, pizza oven, and rotisserie cooker. Not to mention the appliance allow you to cook fried foods healthily.
Apart from food, making your coffee and other beverages at home can help you save up more money. Typically, ordering drinks to go costs more when you get them from cafes and restaurants and they’re also often packed in single-use beverage containers that can have negative effects on the environment. By preparing your beverages at home and using reusable containers, you spend less and can be more environmentally friendly.
Get Second Hand Furniture
Depending on the kind of apartment you move into, some come furnished while others only have the essential fixtures and you’ll need to bring in some furniture. If you want to make the space more comfortable and functional without spending a lot of money, look for secondhand items. Check out online marketplaces for used or refurbished furniture and you’ll save more.
Alternatively, you might have friends and relatives who are ready to part with their furniture. Perhaps, you can buy the pieces from them at a reduced fee. If they’re generous, they might give the furniture to you for free.
Apart from the monthly rent, renting an apartment comes with its own expenses. If you’re looking into saving up for a big purchase, check out the budgeting tips mentioned here. They can help you reduce your usual expenses and still make your temporary home a comfortable place to live in.
