If you’re like many Australians, you’re feeling the financial pinch of rising inflation and rent prices. Fortunately, you can combat the cost of this trend by making a few simple adjustments to your budget and lifestyle.
Housing costs are a significant part of most people’s monthly budgets, and they’re also the category that drives inflation the most. When prices rise for this commodity, it’s often difficult for consumers to adjust.
Budgeting to save money
If you’re looking to combat the cost of rising inflation and rental costs, one of the best ways is to budget. You can do this using a simple spreadsheet, or with budgeting software that helps you track your spending and savings in multiple ways.
First, make a list of your expenses and categorize them by fixed, variable and discretionary expenses. This can be done by tracking your bills or credit card statements, or using a spending tracker online or in a mobile app.
Next, look at your spending to determine how much goes toward needs and wants, and how much is earmarked for savings. You can use the 50/30/20 rule for this, but you may need to adjust it to fit your individual situation.
Negotiating rent
If you’re looking to save money, negotiating your rent is an excellent option. You can do so in many ways – whether you want to negotiate with your current landlord or if you’re applying to rent a new apartment.
Getting a lower rent isn’t an easy task, however. You should do your research and know what the surrounding apartment rates are before attempting to negotiate a lower payment.
It’s also important to be polite and stay calm during a negotiation. Being emotional or rude can hurt your chances of getting a reduced rate.
Finding roommates
With the cost of energy, housing and food soaring, finding roommates to share your apartment is becoming more common. In fact, a recent survey shows that 30 percent of young people nationwide live with roommates.
Finding roommates can be a daunting task, but there are plenty of resources available online to help you do so. From specialty apps to social networking sites, you can search for potential roommates and find one that meets your needs and budget.
Moving to a more affordable area or state
If you’re struggling with housing costs, it may be time to consider moving to a more affordable area or state. Although deciding book removalists interstate and move your life is not for the faint hearted. Many people are tied down, either because they have a good job, kids are settled in schools and have a good social circle or they have family. There are many factors to consider, including your family’s budget and tax situation. But if you do make that decision, there may be significant savings to be made including lower rental costs, and mortgage payments. It all depends on where you move to but the costs of living in the middle of a major city is significantly higher than moving to a more regional town or smaller city.
If your children will be in school, look for cities or states with a higher percentage of high-quality public schools. You’ll also want to check out the quality of life in the area, including crime and safety, and how well it’s positioned for growth.
Another factor to keep in mind is that if you plan on working remotely, your employer may make a salary adjustment that aligns with the lower cost of living in your new town. Carefully research local wage and income data to find out how much you could save.
Increasing your income
One of the best ways to combat the cost of rising inflation and rental costs is to increase your income. It can help you pay off debt, save money for emergency needs and live more comfortably.
You can increase your income through several methods, including earning additional income from a side business or working extra hours at a job. You can also ask for a raise or promotion from your employer or apply for a new job.
However, it’s important to note that not all income is created equal. You should take into account any capital gains you’ve earned, interest you’ve received from investments or savings accounts, social security and pension payments and any other forms of supplemental income.
In a climate where inflation is going through the roof and when it’s just getting more expensive to put a roof over our head. We have to try different strategies. Whether it is budgeting more effectively, try your luck by negotiating your rent, finding additional house mates to share their rent with, hiring a moving company to move to a more affordable city or simply increasing your net income. The above strategies can help to combat the rising cost of inflation and rental costs and the more you practice them you will find that it is possible to have more money in your pocket and in the bank during this uncertain climate.