Nowadays, house rent is a sizeable expense that must be accounted for carefully. Set aside your rent before budgeting for other expenses in your monthly financial plan. By doing this, you can better evaluate your overall budget and adjust it as required. If you live in a rented accommodation and want to save money, here are some ways to do so.
Account for rent in your monthly budget
Nowadays, house rent is a sizeable expense that must be accounted for carefully. Set aside your rent before budgeting for other expenses in your monthly financial plan. By doing this, you can better evaluate your overall budget and adjust it as required.
Gone are the days when house rents could only be paid in cash. You can now pay rent online through payment apps and even credit cards and save up to 10% of your monthly rent with cashback and other online payment offers. You can also automate rent payments to avoid a delay penalty.
Adhil Shetty, CEO, Bankbazaar.com, explains, “Your credit cards can help you save money on your monthly rent. You can earn cashback and avail of other attractive offers when you pay rent using credit cards that offer discounts on bill payments. You can also pay your rent using UPI or other such applications and reduce costs.”
Reduce non-essential costs
Accommodation is an essential expense that you cannot ignore. However, you can still reach your saving goal by reducing non-essential costs such as OTT subscription service, swimming pool access, gym membership, etc.
Save on utility costs
Water and electricity, if consumed wastefully, can become a considerable expense. There are many ways in which you can reduce your usage of both to save on bill costs. For example, minimise electricity usage by utilising natural light and turn off appliances like fans and lights when not in use. Switch to energy-saving lighting options like CFLs or tube lights. Several credit cards and online payment services offer cashback or discounts on utility bill payments. Make use of such offers to save further.
Negotiate your rent
Try negotiating with your landlord to lower your rent. Your landlord may favour accepting such a request if you are a good tenant. Renewal of your lease or rental agreement may be a good time to make this request to your landlord. Typically, house rents are revised by 10% annually. You can save a lot if you can negotiate for a lower hike.
Get a flatmate to split the rent
If your rent is high, but your house can accommodate another person, consider doing that. You can save on rent and other expenses you and your flatmate will share.
Switch to another house or location
Certain areas within a city may have higher average rents than others. Also, bigger houses will have higher rents compared to smaller ones. Evaluate your needs and consider shifting to another area or a smaller place to save on rental expenses.
These tips can help you cut down your costs when you feel the pinch due to high rent every month.