Section 3.3 Saving Money on Housing
Subsection 3.3.1 Rent and Mortgages
Get a roommate.
It’s that simple. Roommates are excellent in keeping housing costs down.
If you are turning your nose up at the idea, it may be because your expectations for standards of living for recent high school or college graduates really is. I know with three of my four kids, they whole-heartedly believed that they would be able to afford the same kind of home that they were leaving after high school. The truth is that your first independent housing that you have in your 20’s will likely be much different than the housing your parents or guardians have in their 40’s or 50’s. Needing to share a place with a roommate for your first few years on your own is extremely common, if not the path for most people.
In terms of simple cost, would you rather pay $1,500 yourself for a one-bedroom apartment or split $1,800 with another person for a two-bedroom apartment? Splitting $1,800 would save you $600 per month, which is nothing to laugh at. $600 per month can be saved into a sizeable down payment on a housing in just a few years.
Subsection 3.3.2 Utilities
If you talk to home-owners, they’ll tell you that the cost to heat their homes is getting really high. If you’ve never paid for utilities before, they’re an easy expense to overlook when you’re considering housing options. There are a few techniques I’ll share than can help with utility costs.
First, utilities can either be supplied by a company or a town. Almost always, utilities managed by a town are far cheaper than utilities supplied by a company. The reason is simple; companies supply utilities for a profit, town’s are non-profit entities. As an example, I lived in Palmer, MA previously. In my last year, it cost about $300/mo to run air conditioners in the summer. In my current place in Holyoke, MA, it costs about $100, if that. Towns in our region that have utilities supplied by the town itself include Holyoke, Westfield, and Chicopee.
Massachusetts has a fairly robust fuel-assistance program. These kinds of programs essentially help you pay for utilities. These are especially useful in your first few years in a career where you will not be making as much as your more experienced seniors. These programs are available to lower-income households, meaning that you cannot make more than a certain amount, which depends on a number of factors. I highly recommend applying to see if you’re eligible. (https://www.mass.gov/how-to/apply-for-home-heating-and-energy-assistance)
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www.mass.gov/how-to/apply-for-home-heating-and-energy-assistanceMy father has a habit that I thought was the strangest thing growing up. He turns off the water in the shower mid-cleaning. It’s to save money on both water and heating. Now that I pay my own bills, I see the wisdom in that level of frugality. In general, learning to having utilities on only when you are using them can really help save you money. Turn lights off when not in the room. Turn the heat or A/C down when you leave the house. Fill a sink with water for dishes rather than have a faucet run the whole time. Unplug non-essential things from wall sockets when not in use. You’d be surprised how much excess energy/water we can use over time.
Subsection 3.3.3 Activity: Lower Your Electricity Bill
Suppose your electricity bill for July came in and it’s far more than you had budgeted for. What can you do to help August’s electricity bill be more manageable?
