The pull of a big city is like no other, thanks to its bustling diversity, abundance of job opportunities, and infrastructure upgrades. That being said, living in a metropolitan city is expensive. The high cost of living is pervasive, affecting everything from rent and utilities to excursions and activities. Trying to save money or live comfortably in these circumstances can be quite difficult, but it is achievable with careful planning and budgeting.
Stop paying for convenience
People are exposed to many convenience options in urban areas, including easy-to-reach grocery stores, food delivery systems, and on-call cab services. These costs add up quickly and can make a significant dent in one’s savings. Now, while it may not be possible to avoid convenience services all the time, their use can be limited. To save money in a big city, one should treat them as a luxury rather than a need.
Don’t spend it all on rent alone
Rent is a big-ticket expense in any city. In larger cities, though, the increasing population pushes rental rates to the sky. To save on rent in a big city and live comfortably, one can consider using the 50-30-20 budgeting system. Here, 50% of one’s income is set aside for fixed expenses (such as rent, food, and utilities), 30% for wants, and 20% for savings.
Besides budgeting in a big city, one can take other steps to save on rent.
Get a roommate
A sure-shot way to cut rental expenses in half is to get a roommate. Renters who split a two-bedroom apartment with a roommate in the city may save several hundred dollars per month compared to those living alone in a one-bedroom apartment. These saved costs also include the price of utilities such as water, groceries, and electricity. That being said, living with a roommate requires some compromise, especially with one’s space and comfort.
Negotiate the rent
In most apartments, rent is not fixed. Landlords may be willing to negotiate the price, especially if other similar apartments in the area are leasing for less. To have the upper hand in these negotiations, one must do their due diligence before meeting with new brokers or landlords. One must check the rent on popular real estate websites to learn more about the going rate of apartments in the area.
Maintaining a good credit rating and rental history may also be worthwhile, as these may help build an element of trust with the landlords. If a lower rate is not feasible, one can try to secure a longer lease (a year or more) so the rental rates do not go up every month.
Compromise on location
Different people have different preferences when it comes to renting homes. For instance, some may want a home in a particular neighborhood, while others may want a place close to work. But things may not work out in one’s favor all the time. In expensive cities, renting a place one can “afford” may require a compromise. One may have to settle for any location within the city limits where housing is available, and the rent is not too high.
Get rid of cable connections
Those pesky cable connections could run up bills more than one can imagine. Today, with so many streaming services available at the click of a button, one may not need cable services, especially one with too many frills attached. So, one can cancel whatever is unnecessary and stick to the basics. It is one of the easiest ways to cut costs while living in a city.
Use public transport
When living on a budget in urban areas, one must rely on public transport (bus, trams, subway systems, etc.) or go biking or walking wherever possible. On-demand cab services can be quite expensive, thanks to the high fuel costs and traffic congestion in cities, so it’s best to limit their use to a need-only basis.
Look for free activities
To survive within a budget in a big city, one needs to embrace frugality as a way of life. One of the best ways of doing so is by checking out free activities in the area. Often, these can be found through social media, local newsletters, or even pamphlets and handouts. If not, asking others what they are up to over the weekend is a great idea to find fun (and free) activities. Bigger cities usually have plenty of free museums and galleries, offering city dwellers an affordable and educational way to spend their time.
Check out mealtime specials
While cooking at home is an almost guaranteed way of saving more money, one is bound to give into indulgences once in a while. To lower the cost of eating out, one can look for restaurant events, specials, happy hours, and other promotions.
Say no more often
Now, this may not sound like the most appealing option, especially for extroverts. However, with so many things to do in the city, it is not uncommon for people to end up with an empty savings account. To cut costs, it may be a good practice to start saying no sometimes. Being selective in what one chooses to do outside and where they spend their money can go a long way in helping them save more for the future.