Compared to homeowners, tenants are four times more likely to struggle during the cost of living crisis.
With the pressures of paying monthly rent, increasing bills, and often fewer savings than property owners, renters have it hard at the moment!
Fortunately, though, it’s not all doom and gloom. With some financial tips, you can learn to not just live within your means, but save, too. Learn how in this comprehensive guide.
How to Make a Budget
If you’re yet to make a budget, this is your sign to get started.
No one can properly manage their spending and saving without a basic budget, and the more in-depth you make yours, the more helpful it’ll be. Let’s start, though, with a straightforward budget.
Begin by detailing your income after tax. Then, tally up your regular expenses, which could include:
- Rent
- Water/gas/electricity bills
- Council tax
- Subscriptions (e.g. a phone contract or Netflix subscription)
You may also pay for car insurance or have items on finance, like a sofa or laptop. Work out what the monthly cost is of these ‘set-in-stone’ costs.
Next, estimate the monthly cost of regular expenses that aren’t set in stone. These include food shopping costs, travel expenses, and pet bills.
Last but certainly not least comes your fun and luxury expenses. These aren’t essential but should have a budget allocated for them. If you have no idea how much you usually spend, go back through the past few months of bank statements and take an average of everything you’ve spent on:
- Meals out
- Coffee on the go
- Cinema trips
- Nights out etc.
Add your expenses together and, hopefully, the total is less than your income. Whatever is leftover is what you can save!
How to Use Your Budget
If you’re used to tapping your card on a handy contactless card machine and then forgetting all about it, a budget will keep you in check. You’ll be able to keep tabs on how much you spend, where you spend it, and what you buy.
Make sure you analyse your budget. Look at how much you’re spending on small, repeat purchases, like coffee or meal deals. You may realise that your weekly meals out with your friends are causing a pretty big dent in your budget, too! This is all about identifying areas of overspending that you’d like to cut back on.
If you’re spending too much, use your budget to set goals. You may be spending £300 a month on food shopping, for example, but you think you could cut this back to £200 with better planning. List your goals alongside your budget to remind you of them frequently.
Keep Track of Your Budget on the Go
After you’ve built your budget, don’t just close the tab and forget all about it. Instead, keep tracking your spending by making a note of your expenses on the go.
Every time you buy a snack or purchase a train ticket, note it down on your phone. There are some great budgeting apps out there that will automatically record your spending, but a simple notes app will work just as well, too!
Different Ways to Save Money Whilst Renting
Whether you’re thinking of a deposit for a mortgage or just want to be prepared for rainy days, ensuring you have room in your budget for savings is a must. But, when you’re already stretched to the limit, what can you do?
Times are tough at the moment, so we’ve put together some tips that could help you tighten your purse strings.
Shop Around For New Quotes
It’s likely that your bills take up a large chunk of your monthly budget. Make sure you’re getting the most for your money by shopping around for quotes from different providers.
Whenever contracts are coming to an end, call your provider to see if there are any offers available to bring your bills down, too. Once they think you might leave them, you’ll be surprised at the discounts they provide!
Reduce Your Food Bill
Cutting down on your food shopping costs isn’t just about switching to cheaper brands. Though that can help, there’s a lot more you can do to keep prices low.
Choosing to make simple, healthy meals with cheap ingredients is a smart move. Porridge is a budget-friendly, nutritious breakfast, whilst homemade vegetable soups are wholesome and kind on your bank balance.
Cut down on meat – or meat alternatives if you’re vegetarian/vegan – and focus your meals on vegetables, grains, and pulses. These tend to be much cheaper, bringing your weekly food bill down drastically.
Be smart with sales, too. Don’t take a deal for face value, but instead see if the own brand alternative is still cheaper or whether you can find the product for a better price elsewhere.
Stop Wasting Energy
Start telling yourself off if you leave a light on or use too much water. In other words, become your own parent!
Waste costs money, and by running the tap constantly whilst brushing your teeth or leaving the heating on 24/7, you’re not helping yourself. Leave notes around the house if you struggle to remember, and ask others you live with to be accountable for themselves.
Make Money Whilst Renting
There are plenty of opportunities to make more money whilst working full-time. For example, if you start putting your leftover cash into a high-interest savings account or investment fund, you’ll be earning on your income whilst you sleep.
Other smart tips to increase your income whilst renting include:
- Renting out your parking space
- Renting out storage space
- Selling old clothes/furniture through online marketplaces
You may also have the time to start your own side business. Look at your skills and utilise them! You could become a copywriter, jewellery maker, or tutor on the side, bolstering your bank balance and boosting your savings.
Final Words
There’s no doubt that times are tough at the moment. If you’re struggling to make ends meet or find anything to save at the end of the month, these tips should help. Just remember to start by creating a budget and analysing your current spending, and the rest will follow.
