How to save while renting

Saving up for a house, car or even that dream holiday is no walk in the park. This is made even harder when a significant portion of your income is going towards rent.

By using some of these saving tips, you can make sure you are putting away as much into your savings as you can. It may mean sacrificing in the short term but it will pay off down the track.

Create a budget

Yes, it may sound like a buzz kill, but creating a budget doesn’t mean you need to completely restrict your spending. It means you can plan out what you are spending in a month and stick to it.

If that means not getting Uber Eats on the weekend to fit your allocated takeaway food budget, then so be it. If you need a tool to help you plan out your budget, you can use our Budget Planner Calculator.

Pay yourself first

When you get paid, it is always good to move what you want to save to a dedicated savings account before you start spending. That way you are not tempted to spend more than what you budgeted.

Make sure that after you move money to your savings, you leave enough spare to take care of the rest of your expenses.

Have a meal plan

We are all guilty of ordering in some mid-week takeaway, which seems harmless as a once off. There is absolutely nothing wrong with splurging a little occasionally. However, if you make it a habit, it does add up over time.

Having a meal plan is great because not only can you budget your food cost for the entire week, you also have set meals that you can stick to. This helps limit the temptation to order in food deliveries when you can’t decide what to eat for dinner.

Split the rent

It can be cheaper to rent if you decide to split the cost with other people. Having flatmates means that you can share the cost of rent and bills. Overall, you can reduce how much you spend on rent leaving more money to put towards savings.

Pay off debts

Whether it is a car loan or a credit card that you are paying off, paying interest monthly does add up. If you do have any outstanding debts, it is always good to pay these off quickly to reduce how much interest accumulates.

You can pay off outstanding debts faster by making extra repayments on top of what you are required to pay. Have a look at our Extra Repayments Calculator to work out how much you can save on interest when you pay more than the minimum.

There isn’t a one-size fits all way to save. Each savings journey is different and unique. However, you can still apply these tips to help you save that little more to reach your goals a bit faster.