Utility bills: learn how to save money when living alone
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Did you know that utility bills are considered the main “villains” in many tenants’ budgets?
We all know that living alone requires a lot of financial planning. Every month, we have to pay a series of fixed bills such as water, electricity, gas and telephone, which are considered essential for our living.
Each of these amounts can vary greatly from person to person. However, even though they are part of the mandatory expenses of all properties, many people still face great difficulty in paying these amounts and even saving a little money each month.
According to a survey conducted by Serasa , basic utility bills such as water and gas represent 22% of Brazilians' debts. In total, this represents more than 37 million debts involving just these expenses.
In other words, many people say that these bills end up weighing on their pockets, without leaving much left over to save. With the inflation we have seen lately, this situation has gotten worse for many families, who have found themselves in even greater financial difficulties.
Even in the face of these difficulties, it is possible to afford all these costs and even save money by living alone. And that is exactly what we will talk about in this text!
Here, we will share important tips to help you pay all your utility bills and save money at the same time. But first, here are the topics that will be covered:
- Utility bills: is living alone expensive?
- What are the main expenses of utility bills?
- Utility bills: do you need to earn a lot to save?
- How can I control these expenses with utility bills?
- How to save money when living alone?
Let's go!
Utility bills: is living alone expensive?
Depending on the region you live in and your financial habits and customs, living alone can end up being quite expensive. However, this is not a rule.
With well-organized financial management, you can cover all your essential daily bills. You can also save a little money to eat out, travel, or pursue any other hobby you are interested in.
Let's better understand how much it costs to live alone in practice, explaining these two types of expenses separately. In theory, these expenses include the cost of living , often used as a reference for those who are moving .
After all, they show an average of how much each person will spend living alone in a given region. See:
Fixed costs when living alone
Fixed costs include everything a person needs to pay for their home. This is where we can include utility bills, which, as mentioned above, include the basic bills for any property, such as water, electricity and gas.
It is very common to see a change in the pattern of these values with inflation. The clearest example we have of this is in the electricity bill, which has increased considerably with its constant adjustments to the red flag.
In addition, each tenant's consumption habits can increase or decrease their monthly expenses. Still using electricity bills as an example, many felt their pockets hurt during the pandemic, as they ended up using more electricity when working from home.
In addition to these, other fixed expenses for every tenant include costs involving rent, property tax, condominium fees and internet. All of these are essential for them to be able to afford their home.
Variable costs of living alone
Variable costs are all those that are not part of your utility bills. In other words, they are not essential to your home.
These include going to restaurants, leisure options, entertainment, travel, and other luxuries that make up your lifestyle. Here, there is no way to define an exact amount for each expense, since there are countless options in each city.
However, when living alone, it is important to consider them to see if it is possible to maintain them without them harming your utility bills.
What are the main expenses of utility bills?
When we talk about utility bills, the main expenses that every tenant has are those related to electricity, water, gas and internet bills.
But in practice, the main monthly expenses involve many more than just these residential bills. If you are planning to move , you should be clear about what these costs are and have an average of how much you will spend.
After all, it is important to be sure that you will be able to cover the essential expenses of the property without running into financial problems. Here is a list we have put together:
Rent and condominium
Renting properties has become increasingly popular among many tenants, especially those who are moving for the first time.
Renting an apartment brings several economic benefits. Firstly, tenants end up having lower costs for the property in general. This is because all additional costs such as renovations, repairs or maintenance are the landlord's responsibility.
Not to mention that the rental price itself is much more affordable than the installments when buying your own property. Of course, the price will vary depending on each region and neighborhood, but this difference in value is clear.
This also applies to the condominium. Each apartment will define this value, based on a series of factors. For example, the more leisure options there are inside, such as a swimming pool, court, party room and gym, the more expensive it will be.
These are the first essential expenses that must be taken into account in consumption bills.
Market
Grocery shopping is also part of every tenant’s utility bill.
Here, it is important to emphasize that they go far beyond food itself. But, they also include cleaning and hygiene products, both essential for your daily life.
They can end up being a bit expensive for those who end up buying everything they see. To avoid losses, it is important to choose what is really important for your routine at home.
Fixed accounts
Finally, fixed bills represent the main cost for every tenant.
They include: electricity, gas, internet , cable TV, telephone and property tax. Most of these costs have a base value, which will determine the total amount to be charged per month.
But here again, each tenant will pay a different amount depending on their habits and customs. For those who want to save money, there is a possibility! But before we explain how, let's answer some other very common questions that arise on this topic.
Utility bills: do you need to earn a lot to save?
With so many utility bills to pay, it is normal for many tenants to worry about their financial situation. They wonder if they are receiving enough income to cover such expenses without being strapped for cash.
Although it is a common question, it is important to emphasize that you do not need to earn a lot to save money. Quite the opposite!
Several experts share tips on how to save money while earning a lower salary, so you can pay all your bills without going into debt at the end of the month.
Let's see some of the main ones?
Write down and control your expenses, especially utility bills
The first essential tip for saving, especially for those who don't earn a high salary, is to write down all your expenses.
This is especially true for utility bills, whether using a spreadsheet, a notebook for the more traditional, or even using your cell phone or a computer problem.
It is important to write down literally all your expenses. From fixed expenses such as household bills, food and transport, to your luxury expenses, such as dining out, trips and outings.
With this note, you will be able to have a clearer view of where your expenses are going. From there, you can start taking actions that will help you save where you can.
Cut unnecessary expenses
Once you have written down all of your expenses, it’s time to evaluate what you are spending your salary on.
Of course, with a low income, a large part of the money will end up going to utility bills. Even so, small changes in our financial management can help a lot in helping us save a little more money.
One of the best ways to save money is to cut all expenses that are not essential to your daily life. Prioritize those that are truly important, such as utility bills.
Want an example of how this can be done in practice? Instead of eating out practically every day of the week, how about starting to prepare lunch boxes ?
Or, perhaps, swap your breakfast at the bakery for a homemade one? It may not seem like it will make much of a difference, but these small actions every day will help you save a lot.
Remember: never spend more than you earn. It may seem like an obvious tip, but many people end up getting into debt precisely because they can't control their purchases.
Avoid impulse purchases to avoid problems with utility bills
How many times have we gone to the supermarket and ended up buying much more than we actually needed? Or even gone for a walk in the mall and bought some clothes or accessories that we loved?
Impulse purchases are one of the biggest enemies of saving money. That’s why it’s important to avoid leaving the house to buy something without knowing exactly what you need.
Whether you're shopping for food, clothes, or whatever, when you leave the house, make an exact list of what you need to buy and stick to it.
A great tactic to help avoid these impulses is to use the 30-day rule. It works like this: when you find a product that makes you want to buy it, wait a little while.
Write down the price, where you found it, and re-read this information in 30 days. If even after this time, you consider that the product is really important, then take the opportunity to buy it.
Now, if you have doubts or lose interest, it is a sign that you would have spent your money on something unnecessary and that would not serve you for that long. This way, you will be able to save more money for what is really important, such as your utility bills.
Have a goal
Many of us feel more motivated to do and achieve something when we set goals. So why not use this tactic to save money?
If you define your main goal as saving more money, you can map out paths and take more practical actions to achieve this goal. You can even control some impulse purchases more tightly, as we mentioned above.
Imagine where you want to be in a few months or years, and ask yourself what you need to do to get there. How much will you need to save each month? What expenses will need to be cut?
How can I control these expenses with utility bills?
In addition to the general tips we mentioned above on how to save money, there are other options that can also help you control your spending. And, consequently, better manage your utility bills.
In all of them, you can save more money without having to give up a good quality of life. After all, as we have emphasized, you don't need to earn a lot to save.
All you need is good financial planning and open your mind to alternatives and attitudes that contribute to building this new lifestyle.
Come with us to discover these unmissable tips!
Prefer to live in more popular regions
Everything is cheaper in more popular regions, including paying your utility bills.
Let's use the city of São Paulo as a reference, considered the second largest in Latin America. Each region of the city has a completely different cost of living.
In other words, if you choose to live in upscale neighborhoods like Moema, Pinheiros or Itaim Bibi, you will certainly pay a little more for all services, from rent to grocery shopping and entertainment.
Therefore, a great tip for controlling your spending, especially on utility bills, is to choose to live in more popular and accessible areas. In the capital of São Paulo, the city center is, without a doubt, one of the best options.
In addition to being strategically located to make getting around easier, its residents can find everything they need nearby. And of course, their wallets will be very grateful!
It is one of the most affordable regions, from rent to bills. So, look for similar options to save a little more money each month.
If possible, choose to get around on foot.
Transportation expenses should not be left out of your monthly bills. Especially for those who own their own vehicle. After all, let's face it, the price of gasoline and alcohol has been rising steadily lately.
Even though they are essential expenses, have you ever thought about replacing them by preferring to get around on foot?
In a metropolis like São Paulo, there are several public transportation options to help you get around. From bus lines to trains and subways, all of them connecting the main points of the city to ensure you can get around.
This way, you can go wherever you want and still save a little more to pay your utility bills without having to worry at the end of the month.
Cook more and order less delivery
Who doesn't love delivery? The convenience of ordering ready-made food at home is a dream for many, especially those with a busy schedule.
On the other hand, with each order, our budget becomes tighter and tighter throughout the month. If you want to save money to pay your utility bills without stress, it is important to reduce these purchases and, instead, prefer to cook at home.
Of course, this will require a greater investment in grocery shopping. But rest assured that you will spend less than if you ordered delivery more frequently.
Healthy options like rice, meat, beans and salad complete a great menu for your week. Also, with additions according to your dietary preferences.
In addition to providing a better quality of life, who knows, you might even discover a new hobby to pursue?
Consider shared housing
Many tenants are opting for shared housing to save more money, especially on utility bills.
Living alone involves numerous costs. Therefore, when you share an apartment with someone, you will have extra help to pay all the bills for the property. Not to mention help with all the household chores such as cleaning your entire house.
Even if the property is located in an upscale neighborhood with higher prices, shared housing will help you cover these expenses without having to worry about it.
There are several platforms with incredible options according to each profile. Here at Citas , for example, we have options for renting entire apartments, as well as renting rooms where the tenants will share the other common spaces.
All this, ensuring the best housing experience for our citizens . Be sure to check out our units and find the perfect one for what you are looking for!
Conclusion
Paying your utility bills can be a real challenge for those who don’t know how to manage their finances! But that doesn’t mean you have to struggle to pay for what you need.
In this text, we share important tips that will help you save money while living alone. This, without having to give up an excellent quality of life.
Remember: the most popular areas of your city may be the best options for this task! They will most likely have everything you need and at a more affordable price.
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