All of us here at D.R. Horton understand the importance of saving money while renting. Increasing rental rates in the U.S. can make this even more challenging. So, we’ve decided to compile a few tips that will guide you towards successful savings, and ultimately home ownership.
1.Budget all of your expenses
I’m sure you’ve heard this time and time again. Your parents were probably the first to teach you such an important life lesson. This strategy hasn’t changed since saving and budgeting your weekly allowance as a child. It’s important to calculate every monthly expense. This includes not only fixed expenses like rent and insurance, but also variable expenses, like dining and entertainment. Budgeting every month will give you a solid understanding of how much you can apply towards saving for a new home.
2. Find ways to reduce current expenses
This is probably the most challenging thing to do for most renters. Believe it or not, there are multiple ways to literally cut some costs in half. Have you thought about negotiating rent before move-in, or during a lease renewal? Both are great ways to save a little every month. However, the biggest way to reduce rent (and practically every other living expense) is to find a roommate. It’s no secret that having a roomie can be a dreadful experience. We all have our share of roommate horror stories, but if you can find good roommate, you could save hundreds each month.
3. Cut Down on Unnecessary Items
In addition, you could also eliminate certain expenses like gym memberships, tanning salon fees, recreation centers, and more. All of these services are increasingly becoming amenities in some urban rental properties. If you rent a space in a property that does have these amenities, consider using them. After all, the price to maintain these services is coming out of your monthly rent anyway. And don’t worry, you can continue to save on these expenses after becoming a homeowner. For example, these communities in Dallas, TX alone offer fitness centers, swimming pools, walking trails, and tot lots for kids.
4. Conserve Energy
Lastly, consider finding ways to conserve energy in order to reduce costs. Setting your thermostat to 60 degrees in the summer months guarantees a high energy bill. Setting your thermostat to 70-72 degrees should maintain a comfortable temperature year around. Utilizing ceiling fans to circulate hot and cold air can also increase efficiency. Unplugging certain appliances when not in use is another great way to reduce consumption. Follow these recommendations, and you’ll be well on your way to building that savings account!