As housing costs continue to soar at a record-breaking speed, more people are renting rooms from PadSplit. PadSplit’s prices are 40-50% lower than traditional apartments, which equates to an average savings of $420. PadSplit puts affordable housing within reach for different types of individuals throughout the U.S., whether you rent a room in Las Vegas or rent a room in Miami.
Once you book a room on PadSplit in the local area and start saving, there are many ways to save or spend the $420 monthly. Here are a few practical ideas, whether you’re working on goals or want to improve your quality of life.
1. Build an Emergency Fund
You may be desperate for cash, which is when you can either save life or enjoy money. In the short term, it’s important to put extra cash aside to ensure you can continue to have your needs met.
Financial experts often recommend saving at least three to six months of living expenses in an emergency fund. If you haven’t already started one, allocating a portion of your extra $420 every month towards this fund is an excellent idea. A safety net can provide peace of mind and protect you from unexpected expenses.
2. Pay Off High-Interest Debt
High-interest debt, such as credit card balances, can eat away at your finances. Consider using a portion of your extra income to pay down these debts faster. Reducing your debt not only saves you money on interest but also improves your overall financial health.
There are also a few things to stop buying to save money, including paid subscriptions, brand new clothing, fake nails, and fast food.
3. Contribute to Retirement Accounts
Investing in your retirement is essential for long-term financial security. You can use your extra $420 to boost your contributions to retirement accounts like a 401(k) or an IRA when you rent a private room with PadSplit. The power of compounding interest can turn these contributions into a substantial nest egg over time.
4. Invest in the Stock Market
If you’re comfortable with a bit of risk and have a long-term horizon, consider investing in the stock market. You don’t need to be a stock market expert to get started; there are various apps and platforms that make investing accessible to beginners. Over time, investing can help your money grow and potentially provide a source of passive income.
5. Save for Specific Goals
Perhaps you have specific financial goals, such as going on a dream vacation or purchasing a car. Use your extra income to create a dedicated savings account for these goals. Knowing that you’re working toward something you’re passionate about can be highly motivating.
6. Take a Workshop
Investing in yourself can have long-term financial benefits. Consider using your extra income to take courses or workshops that enhance your skills or expand your knowledge. This can lead to career advancement and potentially increase your earning potential in the future.
7. Save for a House
You may want to learn how to save for a house while renting. Saving an extra $420/month by renting from PadSplit can put homeownership within reach. Start saving the extra money to save for a down payment on a home. Calculate what you can afford to purchase, and save an average of 5-20% of the purchase price of the property to secure a home loan.
8. Start a Side Business
If you’ve been harboring a business idea, use your extra income to kickstart it as you live in a 3 or 4 bedroom house for rent through PadSplit. Many successful businesses started as side projects. Your additional $420 can cover initial costs, marketing, or inventory. With dedication and hard work, your side business could eventually become a significant source of income.
9. Save for Education
It’s possible to further your education when you save $420/month. Whether you want to earn a bachelor’s degree or move on to earn your master’s, it can allow you to further your career and earn a higher salary long-term for more success and financial stability.
10. Treat Yourself
Lastly, don’t forget to enjoy the fruits of your labor. While it’s important to be responsible with your extra income, setting aside a portion for personal enjoyment is perfectly acceptable. Treating yourself occasionally can help maintain a healthy balance between financial responsibility and personal satisfaction.
It’s never too early to start saving an extra $420/month by renting a room from PadSplit, which offers lower rates than 1 bedroom apartments for rent in major cities. Browse the different rooms we have available throughout the U.S. and apply to become a Member today. Most people are approved in minutes, making it easy to move into your new home tomorrow!