I was renting for more than half my life. It started in high school when my sisters and I attended school in a town three hours away from home. College was no different, I was moving from one dormitory to another wishing that I could afford an entire place for myself. In 2007, I decided to move here in Manila and rented a small room. I upgraded to a studio unit after three years, and kept it that way for quite some time. It was not until almost ten years later that I realized that I needed to get a place of my own.
So, are you able to save while renting? It was very difficult for me back then. For ten years, I was spending almost 40% of my salary on rent alone. That is way too high from the advisable 30% maximum. If your budget for rent is more than 30% of your salary, it is time to consider looking for a cheaper place. That would be the very first way to save money when you are renting.
Second, rent a place that is within a walking distance to where you work. You are renting anyway, so why choose to live far and incur another expense on transportation? For a few years, I was able to save a lot from living very close to our office building. It saved me time, money, and energy.
If your landlord allows you to cook, take advantage of that. If not, look for a cheap place to buy food. It’s not very hard to find one around residential areas in Metro Manila. For years, I was eating fast-food almost three times a day, and I would never ever advise anyone to do the same. Not only that it is unhealthy, but it could tempt you to over spend. If you are a fast-food junkie like me, I understand the ease and comfort that McDo, Jollibee or KFC could offer, but try to ignore that! Start slowly. I was able to do it, you can too.
Fourth, get rid of cable TV. I would understand if you are spending on data, but television is just a thing of the past already. Chances are, you’re sharing cable fees with your landlord and that is not practical. I’m telling you, I couldn’t live without TV back in the day and I was paying cable subscriptions since college. But when my old television stopped working four years ago, I never bothered buying a new one. I haven’t seen any show on television since then and that was one of the best decisions I ever made! Besides, anyone could watch an episode online, anytime, anywhere, and without the commercials.
Lastly, share a room or apartment. This is related to number one. It is something that I couldn’t do when I was renting because I wanted the place all for myself. But if you are serious about saving money, invite someone you could split the rent and bills with. That is 50% of everything. Big savings!
I am writing this article wishing that I followed all these money saving practices when I was still renting. It would have saved me a lot if I did. I use to share stories with co-workers who were also renting and we all had the same sentiments – that saving money is impossible if you are paying rent. That is NOT TRUE! I always knew it isn’t but I just didn’t have the determination and discipline. If you are renting, the more that you should prioritize saving money. Some little sacrifices here and there could go a long way.
How long have you been renting? Has saving money been a challenge to you too?