For many people, wages aren’t growing, but rents definitely are. This is especially true of you live in a city, where rents are increasing at significant rates every year. Although many people discount the idea of living with a roommate after they are done with college and enter the working world, it could be one of the smartest money management moves you can make. Here is a look at how sharing a home could be the key to making your checking account grow.
Cut Your Rent
If you decide to get a roommate with whom you share a room, you can cut the rent of a one-bedroom apartment in half. When you’re not sharing a room and opt for a two-bedroom apartment, you most likely won’t be able to reduce the rent you would pay if you lived alone by a full 50%, but in many big cities, you will save 30-40%, which is still significant. This savings alone is enough to make many people decide that roommate living is right for them.
Cut Your Bills
The ability to split bills is another budget-friendly boon for roommates. Although your usage of some utilities, like electricity, may be higher because you have more than one person in your home, being able to cut the bill down the middle is still worthwhile for most people. There are some bills, like cable and internet, that don’t fluctuate with usage, and so you’ll save a full 50% with a roommate over living alone.
Pay Off Debt
By living with a roommate, you can focus more of your income on paying down debt. This can be especially helpful for people dealing with student loan debt or who are coping with high-interest credit cards. Living with a roommate could be key to getting the fresh start you need.
At GCS Credit Union, the financial well-being of our members is our top priority. Let our credit union team help you make smart financial decisions about everything from auto loans to savings strategies. Not a member? Call (618) 797-7993 to find out how to join our credit union in O’Fallon.