How Much Will A Roommate Save You
We all want bigger and better. We want more money. Or at least we want to reduce our cost of living to have more and better.
A common practice for people to reduce their cost of living is to get a roommate. At first, this may sound like a great idea. You’ll have someone to split the cost of your housing and utilities. But will having a roommate save you as much as you think it will?
The least discussed variable is, do you have a spare room to rent out? Will you need to move to a different apartment, complex, or house to have a room to rent out?
How Much Will A Roommate Save You
If you move from a one-bedroom apartment to a two-bedroom apartment, the price will probably increase when you move. If you were paying $800 a month and moving into a two-bedroom apartment that would charge you $1,000 a month, you would not be saving as much as you thought.
In the first apartment, you would charge your tenant half of the rent, and You would receive $400 a month. You are reducing your cost of living by $400 a month.
In the second apartment, you will still charge half and receive $500 a month, but your cost of living is still $100 more than if you stayed in the one-bedroom with a roommate. The $500 doesn’t include utilities.
The more the apartment costs, the less you will see in savings.
If You Have A Spare Room To Rent Out
I’ve touched on the difference in the amount your tenant will pay you and the difference you will receive from that tenant.
This is a small example of the price increase you may expect if you move. In a world where everything counts, it’s essential to consider all the points.
If you want to improve your finances, you need to examine your decisions from all angels,
Will this help me, or will it hinder me?
There Are Other Things To Consider
Like the cost of utilities. How much will the increase in the use cost you?
How will you deal with the increased use of electricity and other utilities? Charge them half?
Conclusion
As usual, know your why. If you are getting a roommate to lower your cost of living. Make sure you will decrease your cost of living.