How can I save money while paying bills?

Saving money while paying rent is an overwhelming task. With the Philippine economy booming, budgeting housing costs and everyday living expenses may make you feel like walking on thin ice. Saving more money while renting for all one knows gives most renters a hard time due to their financial situation. So how can you earn and save extra money? We got you covered!

In this article, we will take you on a savings journey to achieve financial goals and secure a stable future. Nevertheless, here are some simple tips and tricks you can use in order to earn some big savings while paying your monthly rent, like opening a checking account, minimizing credit card debt, enrolling in assistance programs, using a cash back credit card, or utilizing tax refunds and debt payment rewards. Given that, it is safe to say that there are a plethora of options and methods available to cut off some expenses. What is more, it is easier to earn cash than you think. With everything mentioned, here are eight tips to save money on rent:

1. Consider getting a roommate.

Having a roommate while renting a condo can offer a lot of benefits. Financially speaking, renting a two-bedroom apartment or condominium can be less expensive than renting a one-bedroom apartment. What is more, resources such as household items are a lot cheaper when they are divided in two. Thus, having someone who can split the rent with you can help you lower rental costs and save some money on rent. On that note, it would be best to widen your search to the ideal condo rental market and housing market. In doing so, you will be able to get ahold of a nice condo that asks median rent.

2. Reduce unnecessary spending to reserve some of your monthly income.

Indulging yourself is good for self-satisfaction. However, if you are really serious about getting a few extra pesos, you need to buckle up and refrain from unnecessary spending to use your after-tax income wisely. For instance, impulsive purchases like unused subscriptions such as TV or streaming services, internet, whatever you can think of If you have not used one in a month or more, cut it out! On the other hand, you can always wait for your favorite series or movies before renewing your subscriptions and cutting them out afterwards. Moreover, if you are being charged fees, those funds could be used efficiently to reduce your debt burden or enhance your emergency fund. Additionally, lowering your grocery bill is one way to save money. Notably, buying raw and produced meals can be a lot cheaper than buying takeout. Not only that, grocery stores offer loyalty programs that give you access to tons of deals and discounts.

Try to live inexpensively and find ways on how you can settle with its terms. The results of reducing unnecessary expenses can be quite surprising. The only hard part is sacrificing your self-satisfaction, but in the end, it is very rewarding.

3. Budget your money.

Establish specific savings goals. Whether you're building an emergency fund, aiming for a savings goal, or focusing on debt repayment, having clear financial goals can provide a sense of direction in managing your finances.

On the contrary, for some people who have low incomes, money management is the key! Consider using a budget framework. The most common budget framework is the 50/30/20 method. It is a simple method in which you allow 50% of your paycheck for our monthly expenses, such as food, dues, utility bills, and other expenses. 30% of your income is for wants such as subscriptions, vacations, most recent electronics, and other costs. Finally, the last 20% is for savings, emergency funds, and to eliminate debt. In this way, you have a proper saving goal mindset, and your budget is on a perfectly maintained track. Following this budget framework can help you realize that you have more control over money than you think. It's the method by which you achieve any financial budget goals, like saving for a down payment.

Pro Tip

Pay on time. Consistently doing so will reduce your outstanding balances. Make sure to prioritize making on-time payments for your personal finance goals. Other than that, a great way to save fast is to set a limit on how much you can spend on your credit or debit cards.

4. Find a cheaper place.

If your current rent is more than 30% of your pay check and a roommate is not for you, try to find a cheap and small apartment. Moving to a small apartment can help you save money quickly. Apart from this, there are several benefits, including easier maintenance, energy efficiency, a simpler lifestyle, and financial freedom.

Moving to a smaller place can lead to a more manageable, enjoyable, and fulfilling living experience without worrying too much about your needs and priorities.

5. Get a side gig or part-time job.

Monthly income is not enough. Finding ways to earn an extra budget? Consider getting a part-time job or a side gig. Getting a part-time job or side gig is another way to increase your savings. Notably, instead of doing nothing around your rental home and having a lot of spare time, try gig economy jobs. Delivery, freelance writing, and transcription are some of the best and easiest ways to earn extra income, as they pay well.

Time management is not much of a problem since most of the jobs are very flexible and allow you to set your own hours. Side hustles are perfect for people with busy schedules who want extra income on their terms.

6. Save money for your own place while renting.

Start saving for your first condo. For first-time homebuyers, saving for a house while renting is typically a major financial hurdle.
Renting a house offers flexibility and convenience while also serving as a chance to save extra cash quickly and work towards long-term financial objectives. By employing thoughtful planning and clever tactics, you can efficiently handle their finances and enhance their savings.

For first-time buyers, try exploring rent-to-own options. Rent-to-own means renting a home with the option to buy it later. You sign a lease to rent for a specific time and have the choice to purchase the property before the lease ends. This can allow you to prepare your finances, lock in the purchase price and down payment amount, and work towards building equity. On the contrary, there is a higher chance of losing cash; missed payments can void your agreement, and it requires a mortgage once the lease ends.

However, with the correct approach and mindset, it is possible to save for a house while renting. Through careful budgeting and making wise lifestyle decisions, you can accumulate savings and progress toward your financial objectives and savings goals. In saving, it is crucial to understand that purchasing your future home is a process that takes time and effort. Understanding that buying your future home is a process that requires time and effort is essential to saving.

7. Start a high-yield savings account.

What better way to earn cash than to deposit it in a savings account? High-yield savings accounts are designed to offer significantly higher interest rates than conventional savings accounts. Meaning, while you are renting, your money has the potential to grow at a much faster pace thanks to the wonderful extra interest rates these accounts provide.

8. Save money for a down payment.

Side hustles can be time-consuming for some people, especially if your line of work takes too much time and energy. If that's the case, consider saving cash for a down payment.

Earning savings for a down payment while renting can improve your financial standing in preparation for condo ownership in the future. A down payment can create a strong footing for a smoother and more financially advantageous transition into condo ownership.

Earning and saving cash while renting is a stressful task, especially for people who have troubles due to insufficient pay checks, hard time budgeting, and many more. Nevertheless, the paragraphs above can help you know how to efficiently save cash while paying your monthly rent.