Strategies to help you when money is tight.
It is no secret that people are struggling immensely to pay their bills right now. Unemployment is high, affordable rent is hard to come by, and making your monthly mortgage payment is much more difficult during these uncertain times.
Millions of young adults are being forced to move back home.
In fact, according to The New York Times:
“The data, analyzed by Zillow researchers, showed that 2.7 million adults moved back home in March and April ”
But, if you are a homeowner, there are a few simple ways you can utilize that asset and bring in some serious cash.
Whether you are struggling to make your monthly mortgage payment or you are just looking for a way to make some extra money, the following three options can help you out.
1. Airbnb your space in this way.
If you Airbnb your house while you are away on vacation, visiting a friend, or simply rent out part of your space while you are at home, you can make extra cash to put towards your monthly mortgage payment.
This actually is not as uncommon as you might think. Many people rent out a spare room in their house on the weekends because they can make some money while they are away.
Plus, if you happen to own a property that you do not live in (a vacation home, a small condo, etc.), you might as well bring in some extra cash rather than letting it sit vacant while you pay rent in two different places.
According to CNBC, one woman:
“listed the entire house for $500 a night and frequently rented out the entire home for a week in the summer while her family was on vacation for over $3,000.”
This just goes to show that in a single week, you could make enough money to cover a full month or two of rent.
With this method, you get all the perks of living a life free of extra roommates, and you also get to maintain flexibility in regards to when you want to rent out your place, and who you rent it out to.
Even if you live in an apartment, you might be able to sublease your space when you are living back home. For example, if you only live in your apartment while you are at college for 8 or 9 months, you could consider renting it out during the summer to someone who is taking summer courses while you are at home.
Of course, this is not always possible, as some apartments do not allow subleasing spaces. Make sure to check the rules for your specific apartment before going with this option.
2. Rent out the following room.
If you are a home owner with a spare room that is either sitting vacant or has become a catch-all for the extra junk in your house, you should consider renting it out.
Now, this method does involve you being comfortable having a permanent roommate. However, if you live in an area where the demand for housing is high and availability is low, this option could make you a pretty large sum of money and pay for a good chunk of your monthly mortgage payment.
Plus, you can easily list your vacancy on social media platforms like Facebook to find people in your area in need of a place to live, which will help you fill the room faster.
This could also help people who are in an area with high living space demand but low availability. In some cities, it is near impossible to find an affordable apartment, so you could help others out while helping yourself as well.
3. Move back home.
This is the last option that you might not want to hear. However, if you truly are struggling to make end’s meet, and you have family or friends that are willing to give you a place to stay for free (or for much less than your current rent payment), you should consider this option.
You will get to spend some time with the people you love, and you will avoid a huge pile up of debt.
Moving home will also give you time to look for a solid job and get back on your feet. You can save up your money for a few months so you ensure that when you do move back out, you will be able to fully support yourself.
And I know there is a stigma surrounding moving back home. But, you should not feel embarrassed if you need to do so. Trust me, you are not alone.
I personally moved back home for my final semester of college to be near my family and save on rent (I commuted because I only had one class left to take).
I was planning to move out in July of 2020, but I delayed my plans until the winter because of safety concerns with the rapid spread of the coronavirus. My entire family came back home to stay close and isolate ourselves to prevent exposure.
This option may be helpful for non-financial purposes as well. If you live alone, it could be very isolating during this time where people are trying to avoid going out in public to stay safe at home, and having your family, friends, parents, siblings, etc. to converse and spend time with could be comforting.
If you have a solid support system in your life, do not be afraid to lean on them during these times of uncertainty.
Even when money is tight, there are ways you can get creative and save up a little extra cash here and there.
While it might not seem like much in the moment, it adds up over time. If you’re a home owner, you can get creative by renting out part (or all) of your space to guests. If you’re a renter, moving back home or into a less expensive apartment might be your only choice.
Either way, you have to do what’s right for you. Weigh all your options, make a decision that you’re comfortable with, and have faith that it will all work out in the end.