Thursday, June 3, 2010

Saving on Rent.

For most of us our rent or mortgage is our largest expense. Before purchasing a home, paying rent was my least favorite part of the month. I hated that I was burning my money. Of course I understand that shelter is a need, and does provide a service. But no matter how you look at it, any amount of money being paid in rent is money lost forever. So for those who are paying rent here are a few ideas on how you can save.

1. Find a place where you can share a room. Typically apartments with shared rooms have a much lower cost for rent. Having a roommate can actually be a lot more fun than having your own room.

2. If you are currently living in a place where you have your own room. Contact your landlord about finding a roommate. If legal in the area landlords love this. First off they get to get another deposit in which they take a large portion to keep for carpet cleaning if needed. Secondly despite lowering your rent overall now they have 2 people paying $500 a month rather than one paying $700

3. Buy a place: If you have a steady job but don’t want to be tied down with a huge mortgage. Purchase a place and rent out the extra rooms. If you have a four, bedroom place you can often make money on renting out the spare rooms. At least you will have others paying your mortgage and helping you build equity each month.

Alan Corey a self made millionaire used this tactic to make a lot of money. Check out his book “A million bucks by 30” for details. (This is one of the funniest personal finance books I have ever read. I love it)

Here is a link to his website

4. If you don’t mind living with a couple, many families are willing to rent out single rooms to save on their mortgage.

What are some of the ways you can think of to save on rent?

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