Apartment Perplexed: How To Save Money In An Apartment

Conventional financial advice argues that in order to save money, you should have rent or mortgage that is manageable, and opt not to be “house poor,” a phrase that simply suggests that you are living in a house you can’t afford and thus can only afford that payment and nothing else.

Buying a house is nothing to be taken lightly and if you’re in the market to save money, renting might be the better choice. As a renter, you have to carry what amounts to a small monthly renter’s insurance fee and also have tremendous piece of mind that if something breaks in the apartment or rental unit that you simply don’t have to fix it. That is the responsibility of the person who owns it, and thus takes you off the hook for major repairs, such as replacement windows, a furnace on the fritz or a leak in the roof that isn’t yours.

Now, renting also means you don’t own your home, and you’re paying money that is getting you nothing. But even with that point of view, you can’t discount that, if you’re trying to live lean and mean and saving money, renting is the way to go.

But renting doesn’t always mean that you are going to save money without thinking about it or still aren’t going to need to live smart as a renter versus a homeowner. Even though your monthly rent might be much lower than a mortgage payment, renting still has its own set of pratfalls that can cost you a ton of money.

For starters, renters have to be extremely careful with dents, dings, and stains in an apartment because, after your security deposit, you are going to get potentially a bill for the damage done to the apartment. So the money you’re saving by not having a mortgage or paying for expenses might be lost if you’re not extremely careful with your day to day activities within that living space.

And, most rentals don’t include utilities so you’ll still have to be mindful of how you use gas or electricity, depending on what the until uses for heat especially, along with determining what type of cable television or satellite package you want to buy. Most fixed costs are garbage and sewage, but you might consider conserving water by forgoing the dishwasher for only a few things (if you’re living alone for example), and energy efficient appliances might be a good investment for your apartment if you’re responsible for buying a washer and dryer (most units come with the refrigerator and stove).

Cable is a huge expense, so maybe consider a low-cost alternative to a modest internet service and a lesser expensive streaming service.

Just because you rent doesn’t mean you are going to save money without still budgeting and being smart with your money. The rent might not be an eye opener alone, but it can be accompanied by plenty of other expenses if you’re not paying close attention to them.

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