3 MIN READ
Would You Share Your Home to Save Money?
I have been reading more and more blogs and articles on how to save money, but none seem to address one of the largest expenditures we have, where we live. For the majority of us our housing costs make up the largest percentage of what we spend each month to live. So what better way to cut those costs then to share them with someone else.
Lodger, flatmate, housemate, roommate, etc, whatever you wish to call them, splitting the costs of where you live is a common and easy way to reduce your monthly housing expense and free up some cash, or just get a place to live that fits in with your budget.
For myself sharing a flat or house takes me back to when I was at university and all of us poor, starving students had to share a place to live; either off campus in a house or flat, or on campus in the student dorms. No one could afford a place of their own.
Fast forward to current times and current economies, and splitting the costs associated with housing can make good financial sense.
Let’s look at the costs involved with housing; first there is the rent or mortgage payment each month. This would be the largest expense involved with a place to live.
Next would be the electricity and also the gas, you need heating, hot water and lighting.
There also can be a phone expenditure, although more and more people are just using their mobile phones or some form of VOIP or Internet phones. Which leads us to the expenses of accessing the Internet each month.
And of course lets’ not forget our council taxes, although many of us would like to forget them.
All of these expenses can add up each month, especially with the cost of electricity and gas on the rise.
So if you have a home that has two (2) or more bedrooms, why not open it up for a roommate or lodger. You can charge a flat rate each month, or charge a flat rate and split all utilities each month. In some instances if you have more than one roommate, splitting the utilities can be difficult as you need to sit down, do the math, and then collect that amount from each person.
Over the years I have advised people who have come to me with debt problems to take in a lodger or housemate as a way to bring in some extra cash to be used to pay down the bills and pay off their debts.
Now this is not an option for everyone I agree. Some people need and require their own space and sharing their home is not an option.
Then there are those who have let/rented a place to live or bought a property with the sole intention of sharing it, as they know they would struggle to pay for and maintain the house if they did not have the extra income from the tenant or housemate.
So sharing your home can be a smart and financially powerful move depending on your situation and financial goals.
Jon Emge is a Senior Advisor and Content Manager at www.Lifequotes4u.co.uk. Jon is originally from America who moved to Liverpool because of his love for the Beatles. He is a published author and has assisted and advised clients on personal finance. In his spare time he enjoys listening to music, going to the odd festival and practicing his poetry skills!