When we’re young, we tend to spend money on the things that are most fun or exciting. We buy new clothes and go out with friends. However, as we get older and start thinking about the future, it’s important to take a step back from all of this spending in order to figure out how much money you actually have left over each month after bills are paid. Once you know this number, it becomes easier to prioritize where your money goes so that you can reach financial freedom sooner rather than later! Housing and transportation are two of the largest expenses for most people, and they can often be difficult to control.
According to the BLS survey, the largest expenditures were housing and transportation, which comprised 26 percent and 13 percent of people’s take-home pay, respectively. Dec 5, 2022
https://www.bankrate.com/banking/savings/average-household-budget/#stats
However, there are a variety of strategies and tips that you can use to help lower the cost of both housing and transportation. In this blog post, we’ll discuss some of the most effective ways to save money on these two essential expenses.
Controlling Housing Costs
- Choose a smaller home: One of the easiest ways to save money on housing is to downsize to a smaller home. A smaller home will not only be less expensive to purchase or rent, but it will also be less expensive to maintain and heat or cool.
- Look for a roommate: If you’re not ready to downsize, consider finding a roommate to split the cost of rent or mortgage payments. This can be a great way to save money while still enjoying the benefits of a larger living space.
- Consider a less expensive neighborhood: Housing prices can vary greatly from one neighborhood to another, even within the same city. Consider exploring neighborhoods that are further from city centers or areas with high demand to find more affordable housing options.
- Negotiate with landlords: If you’re renting, don’t be afraid to negotiate with your landlord for a lower rent payment. In some cases, landlords may be willing to lower rent prices in exchange for a longer lease or other concessions.
- Be energy-efficient: Energy bills can be a major expense for homeowners and renters alike. Make sure your home is energy-efficient by using LED light bulbs, turning off lights and appliances when not in use, and properly insulating your home.
Controlling Transportation Costs
- Use public transportation: Public transportation is often much less expensive than driving a car. Consider using buses, trains, or subways to get around instead of driving.
- Carpool: If you do need to drive, consider carpooling with coworkers or friends to split the cost of gas and maintenance.
- Choose a fuel-efficient car: If you do need to drive on a regular basis, choose a fuel-efficient car to save money on gas.
- Walk or bike: For short trips, consider walking or biking instead of driving. Not only is this more cost-effective, but it’s also better for your health and the environment.
- Use ride-sharing apps: If you need to get somewhere quickly and public transportation isn’t an option, consider using a ride-sharing app like Uber or Lyft. While this may be more expensive than other transportation options, it can be more cost-effective than owning a car.
In conclusion, there are a variety of strategies and tips you can use to control the cost of housing and transportation. By downsizing, negotiating, being energy-efficient, using public transportation, carpooling, choosing fuel-efficient cars, walking or biking, and using ride-sharing apps, you can save money on these essential expenses and free up more of your income for other priorities.
