Skip the Rent – An Easy Tip to Save Money
Hey! Here’s my favorite frugal living advice: Skip paying rent! Trust me on this one, having avoided rent for 10 years, I can proudly say it rapidly speeds up paying off debts, saving for a big purchase, or learning to manage your budget without much stress. No, I’m not suggesting you dive into a mortgage but rather, aim to live free of charge.
Just think about it. I managed to have an enjoyable summer with minimal work, while spending time with friends and enjoying various activities. Even with an unpredictable paycheck, I made ends meet. You must be wondering, “How?” Well, aside from doing a bit of side hustling with my blog and eBay and using some savings, the biggest game-changer was not paying rent.
Living with your folks might not be everyone’s cup of tea. Maybe your job necessitates far-off living. Or maybe things at home are a bit rocky. Nonetheless, if moving back home is an option, it can help you save, even if you pay a tiny bit of rent to your parents.
Imagine this. Fresh out of college, you relocate to your parents’ and save every single penny for a year or two. You’d start building a decent retirement fund, given the magic of compound interest. But careful, don’t waste your savings on not-so-important things! You have to discipline yourself to save – thinking you’re still paying bills, just to a different ‘landlord’ – your savings account. Or you could use it to pay off your debt.
To level up this strategy, think of jobs offering housing benefits. These jobs may initially seem to pay less, but since they cover your accommodation, you end up saving quite a lot. Imagine being a live-in nanny, soldier, cruise staff member, on-tour worker, or even a Peace Corps volunteer. These roles often provide a pretty solid chance to save.
Several friends of mine have utilized such savings to make dreams come true. From buying houses in cash to starting a business without loans, or putting their kids through college smoothly – all because they chose to save their earnings rather than splurging.
Of the past decade, I’ve been rent-free for 6 years. Even when I had a higher salary (while paying rent), I hardly managed to hit my savings targets. Every time I skipped rent, even with a $20,000 cut in salary, I still ended up winning financially.
So, have you ever let go of your rent or mortgage payments and found a free place to live to achieve your goals?