Tips for Saving Money While Living in an Apartment
One of the best things about living in an apartment is that it is significantly more flexible—and requires a much smaller commitment—than owning a home. While closing on a home requires a down payment that can be tens of thousands of dollars, as well as closing costs, living in an apartment usually only requires you to pay the first month’s rent and make a security deposit.
Because of this, many people across the country will decide to rent a luxury apartment every year. This can be especially exciting if you live in a fast-growing community such as Gainesville, Georgia. In fact, Gainesville—surrounded by the beautiful landscape of Northern Georgia—currently has many great luxury apartments available, including the recently constructed award-winning Treesort.
However, it is also true that many people will plan to live in their apartment for just a few years while trying to save up to buy a home (or make some other significant life change, such as moving abroad). If you want to improve your savings account during your time in a luxury apartment, it will be essential to have a deliberate plan of action.
Fortunately, by making just a few small changes to your lifestyle, you’ll be able to live in the apartment of your dreams while also watching your savings continue to grow over time. In this article, we will offer some helpful tips for saving while living in an apartment and, of course, still taking the time to live your best life.
1. Do Your Research When Comparing Apartments
When comparing different places to live, one of the first details you’ll probably look at is the price. After all, if your goal is to save up for a future down payment on a house, you’ll want to choose a place to live that allows you to have at least a little bit of money at the end of the month.
However, it is also important to realize that the so-called “sticker price” of the home you are considering is just one of several factors that can affect the actual cost of living in a luxury apartment. In many places, there are a lot of hidden fees and expenses that can cause the actual cost to considerably increase. For example, if you choose an apartment that doesn’t have things you consider essential—such as a gym, dog park, available parking, workspaces, etc.—you must find other ways to pay for these expenses.
In other words, when comparing your options, be sure your cost calculations are comprehensive.
2. Create a Detailed Budget—and Stick with It
The best way to begin saving is to create a budget you can stick with. Of course, this doesn’t mean you need to cut out your unnecessary expenses. Entertainment (sports, concerts, etc.), nights out with friends, luxury goods, and other “wants” are all still things you can consume in moderation—but they should all still be included in your budget (for example, you might limit yourself to spending $200 per month on going out).
The more you can account for in advance via your budget, the easier it will be to achieve your long-term savings goals. And be sure to take a close look at your budget every month and make adjustments as needed. If you find you are consistently spending more than you planned for on certain expenses, consider asking yourself why and making some adjustments.
3. Find Ways to Reduce Your Utility Bills
Relatively speaking, the utility bills you’ll receive while living in an apartment will be remarkably lower than the bills you’ll find while owning a home. In fact, recent estimates indicate that the average apartment renter in Georgia only spends about one-third the amount of utilities as the average homeowner. Over time, these monthly differences can really begin to add up.
Still, that doesn’t mean you shouldn’t be proactive about cutting your utility expenses even further. For example, suppose you are willing to keep your apartment at a slightly higher temperature (say, 75 degrees instead of 70 degrees). In that case, you can save hundreds of dollars throughout a sweltering Georgia summer. Finding ways to minimize your water usage, gas usage, and other utility consumption can also make a significant difference. Plus, using fewer utilities is also a great way to reduce your carbon footprint!
4. Consider Getting a Roommate
One of the easiest ways to reduce the total cost of living in a Gainesville, Georgia, luxury apartment is to get an additional roommate. Having a roommate will allow you to cut your monthly rent payments in half, thus allowing you to put quite a bit more money into savings every month.
Of course, having a roommate also has its fair share of drawbacks, such as having to share common areas and having a little bit less privacy. However, finding a roommate with a similar lifestyle can help you save thousands of dollars over the year. This makes a difference for anyone who is trying to better manage their finances.
5. General Lifestyle Changes
It is easy for seemingly small expenses to add up over time, thus impacting your ability to save for future financial goals. For example, making a cup of coffee at home will cost less than $1 per cup, while getting a cup of coffee from Starbucks will cost, on average, about $5. On a day-to-day basis, $4 probably doesn’t seem like much. But if you make these sorts of decisions daily for a year, you will save about $1,500.
And this is just the tip of the iceberg. There are plenty of other ways small lifestyle changes can have a tremendous impact. Cutting unnecessary subscriptions, refinancing high-interest debt, buying used items instead of new things, and more are just a few ways to improve your financial position.
Conclusion
Ultimately, living in an apartment doesn’t mean throwing your money away: there are plenty of ways to save while enjoying modern, luxury apartment living. No matter what your future financial goals might be, each of these actions can help.