How Roommates Can Help You Save Big: A Guide to Cutting Costs and Maximizing Savings

1. Split the Rent

One of the most important aspects of having a roommate is splitting the rent and reducing the cost of living, which is usually the biggest expense for most people. Let's break down this example: if you are paying $1,200 for a single bedroom, you can move into a 2-bedroom apartment with a friend or roommate and pay half of $900 instead of $1,200. Here's your first $400 in cost savings. Make sure to save this additional $400, invest it, or even plan to purchase a home with it.

2. Share Utility Bills

Your utilities costs such as gas, electricity, water, and sewer can also be shared and divided into 2. For example, at night when you're watching a movie, this electrical cost will be split between 2 people compared to 1 if you're living alone.

The same applies for the internet. On average, an internet connection bill would cost $40. This cost can easily be divided into 2 since both of you will have smart devices connecting to the internet. Checkout this link for price ranges that you could save: How Much Should I Be Paying for High-Speed Internet?

3. Reduce Grocery Costs

Living with a roommate will open up more opportunities to save on your local groceries. Why? Imagine if you start purchasing products in bulk, such as going to Costco. You'll save tons of money compared to when you buy for 1 person, where the amount of savings is limited to none. A few examples include bathroom paper towels, toiletries, cleaning supplies, toothpaste, etc.

4. Save on Furniture and Household Items

Here come the big expenses! Ever wondered how much a living room couch would cost? A regular-sized L-shaped couch for entertaining friends can cost a staggering $1,400. What about kitchen utensils such as dishes, cookware, and household items? This not only saves money but also ensures that there are no duplicate items and everything is being used properly without incurring the full cost.

5. Lower Transportation Costs

In case you and your roommate work in similar regions or have comparable schedules, carpooling may be an extraordinary way to shop on transportation fees. One way is via sharing rides, you could lessen the amount of gas you use, reduce wear and tear in your automobile, or even lower your coverage premiums. If public transportation is an alternative, you can also keep on parking fees and the trouble of locating a gap each day.

6. Shared Responsibilities

Remember, now that you're living together, many advantages are at your disposal, but this also includes responsibilities. It's not just about saving money in this case. You need to agree on specific responsibilities, such as who is paying the rent? Whose turn is it to take out the garbage? Whose turn is it to clean the toilet? Who is doing the grocery shopping? Are we taking turns every two weeks or shopping together every time? These questions should be an important topic of conversation with your roommate to establish a healthy living environment.

7. Emergency Savings and Financial Security

Once benefit of co-living and having a roommate is being able to face challenges together. Let's imaging a TV broke or stopped working, both of you can support each other to fix it or even buy a new one. Having a roommate will help you stay afloat. With these reduced expenses be sure to expect more funds available to do something more fun or even save for bigger emergencies such as a car breaking down or medical bill.

Conclusion

Living with a roommate in 2024 is a top choice for being cost-effective and conscious about your financial status. With housing market prices soaring and rents increasing by more than 30%, moving in with a roommate can significantly increase your savings and allow you to allocate more money to things that matter most.

So why not start looking for your new roommate?

Johnny Khoueiry

Sep 2, 2024 • 4 min