3 Ways to Reduce Expenses When Living in a Big City

city-647400_1920Living in a large city is often associated with spending more money. Ideally, housing seems more expensive in large cities and there’s always so much going on that can prompt you to spend more.

Reducing your expenses is one of the best ways to start managing your finances better. You can always earn more of course, but you should start by cutting your expenses down first regardless of where you live or what your situation is. Contrary to popular belief, you can actually save more and reduce expenses when living in a big city.

Here are a 3 ways to do it.

Get a Roommate

Paying the entire rent or mortgage yourself along with utility bills and other living expenses can put a lot of pressure on your finances. A good rule of thumb is to never let your living expenses exceed 30% of your income. You still need your income to meet other needs and expenses so you never want your housing to cost too much.

Getting a roommate can cut your living expenses substantially and even allow you to obtain a larger living area for less. If you have a friend or family member that you trust and can get along with, see if they would be interested in moving in or getting a place together so you can reduce your financial burden.

Utilize Public Transportation

Having a car while living in a large city can actually be a disadvantage. Not only do you have to pay for fuel, maintenance and repairs along with a car note (if you have one), but you also have to pay to park your car in most circumstances and deal with untimely traffic.

Most large urban cities require residents with a vehicle to obtain a parking permit. Even if you don’t have to pay to park your car on the street at your home, you might have to pay to park it at some of the places you visit in the city. With timed and cramped fee parking, it can make driving in the city expensive and a pain.

One of the best things about living in a city is the fact that you don’t need to have a car. Public transportation is all around allowing you to be mobile and you may even live near a ton of amenities that you can walk to. You can choose from taking the train or bus, or you can even bike if you aren’t going too far.

Take Advantage of Free Entertainment

There’s always something going on in a big city which makes it hard to stay on a budget and avoid spending extra money on food and outings. If you take a closer look at the events going on in your city, you’ll notice there should be quite a few free opportunities. I live near Chicago, and while the city is large and expensive, there is always something free going on.

Whether it’s the zoo, a museum, art fair, or festival, check your calendar each month for free offers, then get out and explore with friends. Tourists pay tons of money to travel to big cities each month and check out the attractions. Take advantage of having so much fun and free entertainment nearby whenever you can.

If you’re more of a homebody, you can always invite friends over for dinner, dessert or just a comfortable night in and save money that way.

Do you live in a big city? How do you save money where you live?

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Posted in: Life Hacks, Saving Money

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