living alone

How to Afford Living Alone


More people are living with roommates later on in life than ever before.  This is partly due to the multiple financial crises in recent years and partially because of the high cost of student loans. But, unfortunately, this isn’t the living situation most people want for themselves.  People crave change; they want to live somewhere that will allow them to spread out and live as comfortably as possible: roommates aren’t a part of that picture.


Unfortunately, the cost of living alone is dauntingly high.


If you want to live alone and aren’t sure where to start, here’s how to afford it.


Is Buying An Option for You?

If you’re unsure about renting anymore, buying could be the right fit for you.  Most cities work with first-time homeowners to allow them a cheaper way to get a new house.  This could ensure that you can buy real estate in Toronto off of a teacher’s salary. As well, buying ensures that your monthly payments go directly into your home and that you don’t have to deal with a landlord or leasing company being unpredictable or upping how much you owe every month.  A mortgage is as steady as you want it to be.


Consider Monetizing Hobbies

Monetizing hobbies has been happening more and more in the last ten years.  Most people below the age of thirty have multiple streams of income, which can be useful.  The best thing you can do is try to create a passive income by uploading stories to Kindle or uploading original art and designs to sites like Redbubble.  These will allow you to continue to reap the benefits without having to create new content every time you make a sale.  Although you’ll still have to make new content to keep buyers interested, you won’t constantly be stuck working to keep that income up.


Start Saving Money

Even if you won’t have to pay more than a simple downpayment, it’s a great idea to have savings built up.  If you’re a solitary renter or homeowner, you need to have a safety plan if something happens to your income.  Pay attention to how much money you need to stay afloat in a month: and try to save enough money to carry yourself for at least three to six months.  This nest egg of extra funds will protect you against having to worry about losing your apartment or home and will give you the chance to thrive while living alone.


Do You Need a Cosigner?

Unfortunately, even if you have a great rental history and good savings, many places will still require a solitary renter with bad or no credit to have a cosigner. In addition, these cosigners will be responsible if the renter cannot pay their bills, which puts a large amount of pressure on everyone involved.


If you don’t want a cosigner yet can afford the place, consider offering a larger down payment. Of course, the downpayment will have to be larger and larger based on whatever factors you have weighed against yourself, but if you can afford it: go for it!    Living alone is something everyone should experience at least once in life.