When I graduated college, I knew I wanted to live close to work but I didn’t have anyone to live with.
So, I moved in with 3 guys who posted an ad on a roommate website.
You’re probably thinking that sounds a little sketchy or weird, but I had other things in mind. The cost of rent to live by myself near work would have been $850 per month minimum – most one bedrooms or lofts in the area are closer to $900-$1,000 per month, not including utilities.
Compare that to the $400 per month that I paid in rent by moving into a house with three other people to share utility bills with. That’s a minimum of $450 per month savings ($5,400 per year) without even factoring in that I would have had to pay utility bills by myself in my own apartment.
That savings has been very significant in allowing me to create a solid financial foundation for my future.
If you feel like you’re having a tough time with your cash flow and saving enough, then you may want to consider where you live. 10 or 20 years down the line you won’t care if you lived in an apartment with granite counter tops or free coffee in the lobby. You’ll care about being able to support your family, savings for your kids’ college, and saving for retirement.
