Build your $1,000 emergency startup fund.
Pay off your debts (except for your mortgage, if you already have one).
Save a fully funded emergency fund of 3-6 months for your expenses. If you’re still in debt or don’t have enough emergency funds, leasing is for you. It’s also a good idea to rent the house if you haven’t saved up enough for a down payment (more on that later).
We know that may not be what you want to hear, but remember this:
We don’t want you to rent forever. We want you to tackle your debt with antelope intensity and quickly build up an emergency fund so you can start getting rich and buying a home.
We just want to make sure you own the house, not yours. Look, something is going to go wrong when you move into your first house. If you live past your bills, a broken refrigerator or air conditioner will turn into a crisis that will make you more indebted.
Now I need to buy a house to invest and start building capital. Believe us: If you’re not ready to buy a house and want to avoid the stress of homeownership, Rent The House may be a better option for you. Renting provides more flexibility if you’re in the middle of a life transition or not sure where you want to live in the next few years. It’s also a good choice if you’ve just graduated from college and aren’t ready to commit to a specific location. Instead of investing in a house, you can invest in building your savings and creating an emergency fund to prepare for unexpected expenses. Remember, it’s important to only buy a house when you’re financially ready and able to take on the responsibilities of homeownership.
Or maybe you’re a newlywed and need time to figure out how far away you should live from your in-laws. So many good reasons to keep renting!
What can I do to pay my monthly rent? You may have heard that 25% rule and thought: the rent here is so expensive! If you did, don’t worry, there are ways to offset high rental prices. Here are some tips to help you understand how to pay your rent and prevent it from eating into your budget.
Get A Roommate
If you don’t make a lot of money (or simply don’t want to pay a lot of monthly rent), it’s time to find a roommate. The thought of living with a roommate can make you relive painful college days, but this time you won’t have to step through the weekly old pizza boxes on the living room floor.
You are an adult now and you can share a room with another adult. Think of it as like-minded people at the same stage of life who want to save money by sharing living space. No need for lava lamps or Return of the Jedi movie posters. Rent a room
Housing rental costs largely depend on the location, so if you cannot afford to rent the house in downtown areas, consider looking for options in the suburbs or further away from major urban centers. This may require a longer commute, but you can save significantly by renting a house 30 miles south or in other more affordable areas.
Increase your income
It will be different if you make more money. Increase your income and you can afford more, right? The good news is that today there are many ways to increase your income and some of them are actually quite easy. There’s pizza for delivery, people driving around town, and things for sale, so what are you waiting for?
Find A Cheaper Place
Housing rental costs largely depend on the location, so if you cannot afford to rent the house in downtown areas, consider looking for options in the suburbs or further away from major urban centers. This may require a longer commute, but you can save money while renting a house 30 miles south or in other more affordable areas.
Get a better-paying job
Remember that rental costs will only go one way to go up. To stay on top, your earnings have to move in the same direction. If you know you can count on a yearly raise, great. But the truth is, you may need a higher-paying job to make things work. Pull out your budget and see how a higher income changes everything.