Gen Z can’t afford rent, so how are we expected to save?

Like other generals, I’m “rent poor” with student loan debt, so I try to put extra money aside after I cover my bills and expenses. Ironically, I also enjoy writing about how to save money.

When I heard the phrase “rent comes first,” I could relate. Rent is an unavoidable expense in your budget: You can’t magically fix your monthly rent payment because you want to set aside for your savings. And it’s hard to find a less expensive rental when there’s a lot of competition and rental prices keep going up. The most you can do is try to negotiate with your landlord, which is what my colleague Katherine Watt successfully did for her NYC apartment.

About 32% of Gen Zers spend more than half of their monthly income on housing alone, according to Credit Karma. Although many personal finance experts still promote a version of the rule of one-third — which says that only one-third of your income should go toward housing costs — this guideline seems outdated, especially in most cities. of the USA.

Zoomers are on track to spend about $145,000 on rent by the time we turn 30. And since home ownership feels financially impractical for most of us, we can rent until we’re 60 unless we win the lottery.

6 ways to save when the rent is weighing you down

The median rent for a two-bedroom apartment in my ZIP code, Austin, Texas, is over $1,700.

The only reason I haven’t been priced out is because I’ve always had a roommate. Also, my parents are my owners. Since 2017, I have been helping them cover the mortgage payments on their investment property by paying their rent.

However, working as a personal finance writer and talking to money experts has helped me become creative. I have found some ways to save, even with inflation and the high cost of living. Here are some tips for renters struggling to afford rent.

1. Start a side hustle

I started dog sitting for family members during the holidays to make extra money, and it turned into a legitimate side hustle. I make anywhere from $200 to $1,000 a month and have found all of my dog ​​sitting clients through word of mouth. I have many friends who would rather leave their dogs with me than pay high prices to board them, so it’s a win-win situation. If you need help getting started, try posting on Nextdoor or signing up for a dog walking app like Wag or Rover.

2. Find a roommate

You’re probably thinking, “Duh,” but having a roommate saves you money on rent and common household expenses like internet and utilities. I save anywhere from $65 to $100 a month by splitting internet and utility bills with my roommate. We also share the cost of miscellaneous expenses, such as coffee beans for our espresso machine, toiletries, cleaning supplies and kitchen essentials.

3. Negotiate your rent

When your lease ends and your landlord sends you a rent increase notice, did you know you could negotiate? It’s easy to accept change and move on. However, taking the time to build your case as a responsible tenant can pay off. Contact your landlord as my colleague Katherine Watt did. She saved $1,200 by writing an email. Self-advocacy is a powerful financial tool.

4. Find a short-term sublet

If you live alone or with a partner, find a short-term sublet to bring in a little extra cash. Just check to see if you need permission from your landlord first. As a renter, you can’t make passive income from a sublease, but you can save some money on your share of the rent. For example, a friend of mine who is a teacher relies on a short-term sublet in the second bedroom for three months during her summer break. She’s usually traveling during that time, so having a short-term roommate helps her maintain the house and pay half the rent.

5. Rent out your parking space

If you’re like me and don’t have a car (I ride a motorcycle), a parking spot doesn’t mean much to you. But if you live in an area where street parking is hard to come by, you can earn an easy income by renting out your parking space. Make sure this does not violate your lease agreement in advance.

6. So maintenance of the facility with reduced rent

Depending on the terms of your lease, some maintenance responsibilities may fall on you, such as replacing the air filter, mowing the lawn, or fixing a leaky faucet. It’s worth asking your landlord if you can take on additional building tasks at a reduced rent: tending a garden, taking out the rubbish or doing useful work for the tenants. My neighbor recently started a dumpster for our building and the HOA offered to pay him to maintain it. You can be fined in Austin for violating composting requirements, so she’s doing everyone a favor.

Put your savings on autopilot and watch it grow

Payment of rent is not optional. And if you’re in debt, saving might seem out of the question. But you can look for creative ways to make a little extra money without going deeper into the red. Once you’re comfortable enough to put some money away, open a high-yield savings account to help you grow your money faster. When you decide on a contribution amount that makes sense for your finances, find ways to automate your savings so you don’t have to think about it.