There's no denying the financial benefits of having a roommate. Some people primarily seek a roommate because they dislike living alone and would rather live with a friend. There's someone to talk with everyday, and since there is safety in numbers, living with a roommate can reduce the chances of an intruder. But despite these benefits, there are also financial benefits of having a roommate. Here's a look at seven financial perks.
1. Able to Afford a Nicer Place
Financial benefits of having a roommate include the chance to afford a nicer place. When living on your own, you might not be able to live in the neighborhood you prefer. However, if you get a roommate and share the cost of rent, you can possibly move up and settle in a desired community.
2. Split Utilities
Not only is there the benefit of splitting rent, you can also split household expenses, such as power, water, cable or gas. This can take a huge burden off your shoulders. And if you’re still living at home with mom or dad, getting a roommate can help you move out sooner and become independent of your folks.
3. Create an Amazing Bachelorette Pad
If you’re moving into your first place, you probably know how you want to decorate the home. But unfortunately, decorating and furnishing an apartment or house on one income can be challenging. However, if you move in with a friend, the two of you can combine funds and create the living space of your dreams. This can make for a fabulous bachelorette, or bachelor, pad.
4. Allows Flexibility with Work
Also, when you live by yourself, working full time might be a requirement. However, if you're able to split rent and utilities with a roommate, this can open the door to a flexible work schedule. With the two of you sharing expenses, you might be able to cover all your monthly expenses with only a part-time job. And if you’re looking to start your own business, sharing expenses with another person makes it easier to take this leap.
5. Build a Cash Cushion
Financial experts recommend a savings account with at least 3 to 8 months' worth of income. Unfortunately, this can be challenging to save, especially if you live by yourself. With a roommate, your disposable income might increase, making it easier to save up for a rainy day and plan for retirement.
6. Pay off Debt
Whether it's student loan debt, credit card debt or an auto loan, getting out of debt can be hard when you have several monthly expenses. Getting a roommate can speed your debt elimination goals. Rather than all your cash going to bills, your disposable income can go towards paying off your consumer debt. This can free up money in the long haul and improve your credit score.
7. Reduce Money-related Stress
Do you lie awake at night worrying about money? Is there never enough to cover your monthly expenses? Chances are that you're living beyond your means and your income is not enough to support your lifestyle. However, getting a roommate can allow some breathing room in your budget, which can reduce money-related stress.
Maybe you haven't considered a roommate. But if you’re currently living alone and you want to improve your personal finances, getting a roommate and sharing household expenses can put you on the right track. What are other financial benefits of a roommate?