With the rise in living costs, more and more people are choosing to live with roommates rather than fly solo. Living with roommates can be a great way to save money, make new friends, and enjoy shared living experiences.
However, it’s easy to fall into habits that end up costing more than you realize. Here are some common mistakes that can hike up your expenses and how to avoid them.
Living in the Wrong Apartment
One of the biggest mistakes you can make is choosing the wrong apartment to live. Whether it’s too expensive, poorly located, or simply not suited to your needs, the wrong apartment can drain your finances and your patience.
How to Avoid It
- Use SpareRoom – SpareRoom is a roommate-matching tool for finding the perfect living situation. You can filter your preferences, such as budget, location, and lifestyle compatibility. Whether you’re renting in Houston or looking for roommates in NYC, SpareRoom has got you covered.
- Research – Before committing to an apartment, research the area. Check the average rental prices, the cost of living, and amenities in the neighborhood. Make sure it’s convenient for your daily commute to avoid hidden transportation costs.
- Consider future plans – Choose an apartment that will still be affordable even if your financial situation changes slightly. This foresight can prevent the need for sudden moves and all the costs that come with it.
Ignoring Utility Use
Utilities, such as water, electricity, and gas, are a huge part of your monthly expenses, and mismanagement can lead to surprisingly high bills.
How to Avoid It
- Monitor your use – Simple habits like turning off lights when they’re not in use, unplugging electronics, and using energy-efficient appliances can make a big difference in costs.
- Smart thermostats – Investing in a smart thermostat can help you regulate your heating. Although you might not notice an immediate different in your expenses, this small investment can lead to huge savings over time.
- Save water – Fix any leaks quickly, take shorter showers, turn the tap off when you’re brushing your teeth, and use water-efficient appliances to reduce water bills. You can even install a water meter to monitor your water use.
Not Setting a Budget
Budgeting is important when you’re living on your own, but when you’re living with roommates, it becomes essential. Without a clear budget, it’s far too easy for expenses to spiral out of control.
How to Avoid It
- Create a shared budget – Sit down with your roommates and create a shared budget. Include rent, utilities, groceries, and other shared expenses. This will give everyone a clear idea of their financial expectations.
- Use budgeting apps – Apps like Splitwise or Mint can help track shared expenses and ensure everyone pays their fair share. These tools also help you set spending limits and reminders for upcoming bills.
Overlooking Renters Insurance
Many renters skip renters insurance, assuming it’s an unnecessary expense. However, this can be a costly mistake if something goes wrong.
How to Avoid It:
- Get covered – Renters insurance is relatively inexpensive and can save you from financial loss in case of theft, damage, or natural disasters. Ask all your roommates to get a policy, as it often covers personal belongings and liability.
- Shop around – Compare different insurance providers to find the best rates and coverage options for you. Bundling insurance with other policies, like car insurance, can also provide discounts.
Miscommunication and Unresolved Conflicts
Misunderstandings and unresolved conflicts can lead to financial strain and even jeopardize your living arrangement.
How to Avoid It:
- Try regular meetings – Hold roommate meetings to discuss any issues or changes in expenses. Direct communication is never easy, but it can prevent small issues from escalating.
- Make clear agreements – Have agreements about shared expenses, chores, and personal space. Putting these agreements in writing can help avoid disputes.
- Create a conflict resolution plan – Develop a plan for resolving conflicts, whether it’s through mediation, taking turns speaking, or any method that works for your group.
Skipping Regular Maintenance
Ignoring maintenance issues, however small, can lead to bigger problems and higher costs down the line.
How to Avoid It:
- Report issues quickly – Report any maintenance issues to your landlord immediately. Fixing a small leak now can prevent expensive water damage later.
- Keep up with cleaning – Keep the apartment clean to avoid pest infestations, mold growth, and other problems that could require costly interventions.
- Master basic DIY repairs – Learn to do basic repairs and maintenance tasks yourself. There are plenty of online tutorials for simple tasks like unclogging drains or replacing light fixtures.
Overindulging in Luxuries
It’s easy to indulge in luxuries when splitting costs, but these can add up quickly.
How to Avoid It:
- Prioritize needs over wants – Focus on essential expenses first. Luxuries like premium cable packages or high-end furniture should come second to rent, utilities, and groceries.
- Shop smart – Look for deals and discounts on household items. Consider second-hand furniture and appliances, which can be as good as new and much cheaper.
- Limit eating out – Cooking at home is usually much cheaper than dining out. Plan communal meals and share cooking duties to save money and enjoy quality time together.
Not Taking Advantage of Discounts and Offers
Failing to take advantage of available discounts on a range of things, such as food, trips out, and even household furniture can result in missed savings.
How to Avoid It
- Look for student and professional discounts – Many places offer discounts for students or young professionals. Always ask if there are any discounts before making a purchase.
- Group rates – Look for group rates or family plans for things like streaming services, gym memberships, and other shared expenses.
- Loyalty programs – Sign up for loyalty programs at your favorite stores and restaurants to earn rewards and save on future purchases.
Conclusion
Avoiding these common mistakes can help you and your roommates keep living costs down. A little planning and mindful spending can go a long way in creating a comfortable and affordable home.
