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The Financial Benefits Of Roommates When Paying Off Debt

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Here is how to ensure you stay with more money in your pocket versus sending it to a landlord. If you own a home, this works for you too!

 

And it is to be open to the idea of a roommate.

 

Rent is the highest expense in your budget. A rule of thumb is to only use 30% of your income toward rent. If you are spending more than 30% of your income, then it can start to feel like a burden, and it is difficult to reach your financial goals when you have little money left over.

 

While sharing a living space with someone is not everyone’s cup of tea, there are undeniable benefits financially, especially when wanting to pay down debt. Listen, it does not have to be forever.

 

What if you only did it for one year or six months?

 

Let’s explore why having roommates is good and how it can significantly affect your debt repayment game.

 

What can I split with my roommate?

 

The most obvious one is the ability to split your rent and bills. Splitting the costs will leave you with more disposable income to tackle the debt weighing heavy on you. One roommate equals less financial stress. Entertain the idea.

 

This is the fastest way.

 

How can I find a roommate?

 

Perhaps a friend or family member is looking for temporary housing. Word of mouth can go a long way. Share with your friends and family that you are looking for a roommate.

 

Also, Facebook groups in your area often post a quick bio and share they seek housing. These are a few options, and I encourage you to be cautious.

 

Screen people and interview them to see if it is a fit for both of you. The last thing you want is to bring a roommate who is not a fit, and instead of saving money, it adds extra emotional stress to your life.

 

Be clear from the beginning that you have a lease and the length of the lease.

 

What are the benefits of a roommate?

 

The debt pays off! But also your lifestyle does not have to drastically change because you now have cut the rent by half and are sending it to debt! Your debt repayment plan looks different because you will pay off debt sooner than expected.

 

Once you build trust, you can both cook for each other. This will leave you with more time for rest, and you two balance the household to-dos.

 

You divide household expenses like groceries, supplies, and other necessities. These are more minor ways to reduce your spending.

 

Are you willing to make a sacrifice?

 

Assuming rent is split in half, this is more money to send to debt!

 

Having roommates can be a game changer in the debt-free journey and build wealth to experience more peace and joy.

 

By having a roommate, you are not giving up your freedom in your home. Instead, you are creating freedom in your life.

 

The sacrifice of a roommate is temporary, and the freedom you are creating is long-term.

 

What did it look like for me:

 

A goal I was working toward was paying off our wedding with my husband out of pocket. We increased our income by $30,000 each, which took us one year to find jobs. We lived with family, and we divided rent between three adults. The income increase and living with family helped us save $40,000 in 9 months on time for the wedding in Costa Rica.

 

Returning from our honeymoon in Japan and Bali, I realized that if I could do that for the wedding, I could do it for my debt. I paid $30,000 in consumer debt in one year and a half.

 

Increasing your income and having roommates can speed up how much debt you can pay.

 

When we work together:

 

  • I help you pay debt in a way that works for you
  • I help you create a plan that covers your money goals and builds your dream life
  • I help you learn about investment accounts while you pay off debt. You can do both!

 

If this resonates with you, I invite you to work with me! I want to help you escape survival mode and build a more secure tomorrow. Book a sales call.

 

I cannot wait to be part of your journey!

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ABOUT AUTHOR
Orlenda Cortez

Welcome to my corner on the internet! I’m obsessed with using money as a tool because it led me to pay off $30K in consumer debt in a year and a half, helped me save $20K in nine months to have my dream wedding in Costa Rica and is helping me build the life I never saw my family experience. Now I want to help others do the same!

Orlenda Cortez
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