Savings Tips for Renters: How to Save When You Don’t Own a Home

Renting can make it challenging to save money, especially with rising housing costs and other monthly expenses. But even if you don’t own a home, there are plenty of ways to cut costs, build your savings, and stay financially secure. Check out these practical strategies to help renters save money and reduce unnecessary spending.

Create a Budget That Works for You

A solid budget is the foundation of any savings plan. Since rent is often the biggest expense, it’s important to balance your income with other costs to ensure you’re setting money aside each month.

• Follow the 50/30/20 Rule – Aim to spend 50% of your income on needs (rent, utilities, food), 30% on wants, and 20% on savings and debt repayment.
• Track Your Expenses – Use budgeting apps like Mint or YNAB to monitor spending and find areas to cut back.
• Set a Monthly Savings Goal – Even if it’s just $20-$50 per month, saving consistently builds good habits.

Lower Your Rent (or at Least Keep It from Increasing)

Rent may seem like a fixed cost, but there are ways to negotiate and reduce it.

• Negotiate Your Lease – Before renewing, ask your landlord if they can keep your rent the same or offer a discount for signing a longer lease.
• Look for Move-In Deals – Some apartments offer free months of rent or reduced security deposits for new tenants.
• Consider a Roommate – Splitting rent and utilities with a roommate can free up hundreds of dollars per month.

Reduce Utility Bills

Utilities can add up quickly, but a few simple adjustments can lower your costs.

• Use Energy-Efficient Light Bulbs & Appliances – LED bulbs use less electricity and last longer.
• Unplug Devices When Not in Use – Even when turned off, electronics can still consume power.
• Adjust Your Thermostat – Lower the heat in winter and use fans instead of air conditioning in the summer to save on energy bills.
• Check for Leaks – A dripping faucet or running toilet can add to your water bill—report maintenance issues to your landlord promptly.

Be Smart About Renter’s Insurance

Renter’s insurance is affordable and protects you from unexpected expenses due to theft, fire, or other damage.

• Shop Around for the Best Price – Compare rates from different providers to find the lowest premium.
• Bundle with Car Insurance – Many companies offer discounts when you combine policies.
• Ask Your Landlord About Coverage – Some landlords require renter’s insurance, but they may already have policies that cover certain damages.

Save on Groceries and Dining Out

Food costs can take up a big portion of your budget, but there are ways to save without sacrificing quality.

• Meal Plan and Buy in Bulk – Planning your meals reduces impulse spending and food waste.
• Use Coupons and Cashback Apps – Apps like Ibotta and Fetch Rewards offer cash back on grocery purchases.
• Limit Takeout and Restaurants – Cooking at home is much cheaper than dining out. Try setting a limit on how often you order food.

Avoid Unnecessary Fees

Renters often face hidden costs that can eat into their savings. Being mindful of these expenses can help you save more each month.

• Pay Rent on Time – Late fees can add up quickly, so set reminders or automate payments.
• Skip Premium Apartment Amenities – Fancy gyms, parking spots, and other extras may not be worth the extra cost if you rarely use them.
• Read Your Lease Carefully – Know what fees you’re responsible for, like maintenance or pet fees, before signing a lease.

Take Advantage of Housing Assistance Programs

If your rent is too high, you may qualify for programs that offer assistance or savings opportunities.

• Look for Local Rental Assistance Programs – Many cities have housing support for low-income renters.
• Check for Utility Assistance – Some states offer discounts on electricity and water bills for eligible residents.
• Ask About Employer Benefits – Some companies offer housing stipends or relocation assistance.

Build an Emergency Fund

Even as a renter, it’s essential to have money set aside for unexpected expenses.

• Start Small – Aim for at least $500 to $1,000 in emergency savings to cover sudden costs like car repairs or medical bills.
• Use a Separate Savings Account – Keeping emergency funds separate from your main account prevents you from spending it accidentally.
• Save Windfalls – Use tax refunds, bonuses, or cash gifts to boost your emergency fund.

Consider a Side Hustle for Extra Savings

If your current income barely covers expenses, a side hustle can help boost your savings.

• Freelancing or Gig Work – Platforms like Fiverr, Upwork, or DoorDash can provide extra cash.
• Selling Unused Items – Declutter your apartment and sell clothes, electronics, or furniture online.
• Pet Sitting or Babysitting – Simple side jobs in your free time can add up to significant savings.

The Bottom Line

Even if you don’t own a home, you can still find ways to save money and build financial security. By managing your rent, cutting unnecessary expenses, and creating a solid budget, you can make the most of your income while setting money aside for the future. Start small, stay consistent, and watch your savings grow!