Tenants tend to have more responsibilities. This means more bills to pay, fewer savings. The big question is, how can one save money with all of this in the way?
The great news is that even with such big responsibilities, you can still save money while renting. Today, there are more ways to save than ever before. Here are some ways to save money practically.
Look into ISAs
ISAs, or Individual Savings Account is one os the most practical and popular way to save money. It is highly recommended because you do not have to pay tax on what you save. Account holders are given a tax-free ISA allowance at the start of each year.
There are different forms of ISA with a variety of criteria which depends on what type of saver you are. There are also ISAs more suitable for tenants.
Help to Buy
Since December 2015 first-time buyers have been able to save into Help to Buy Isas. You can save £1,200 in the first month of opening an account and up to £200 a month afterwards.
The Government tops up your savings by 25pc. The minimum it will add is £400 – so you must save £1,600 or more – and the top-up has an overall cap of £3,000.
A couple can open two separate accounts. There is a £250,000 limit on properties purchased (£450,000 in London), while the Lisa has a £450,000 limit nationwide.
There has been widespread confusion over when the Help to Buy bonus is paid.
You will not be able to open a new Help to Buy Isa after November 30 2019. You can transfer a Help to Buy Isa into a Lisa in 2017-18 and it won’t count towards the £4,000 maximum contribution for that year only. – The Telegraph
Budget your monthly income
As usual, the best and most effective way to save money is through budgeting. List down how much you earn every month. List down how much goes into bills and groceries. Then list down how much is left. It is also advisable to ask for receipts whenever you buy something. This will help you track down how much money goes out to important stuff and extra.
Embrace the ‘sharing economy’
The sharing economy allows consumers to do so much more than rent out a room on Airbnb or become an Uber driver. Put your life up for rent and make money from your commute, your storage space and even your friendship. – The Telegraph
Do you have more advice for your fellow tenants? Let us know in the comments below!