8 Tips on How to Afford Living Alone

Between work, family, and social obligations, it can be tough to find time for yourself. When you live alone, you finally have the opportunity to focus on your own needs and do the things that make you happy.

In addition to giving you some much-needed “me time,” living solo can also offer several other benefits:

1. You have more control over your spending

If you live with roommates or a partner, you’re probably used to splitting the cost of rent and utilities, but when you live alone, you’re responsible for the entire bill.

This might seem like it would mean paying more—and usually it does. But it also gives you much more agency over how much you spend on your living expenses.

Since you’re only responsible for your own expenses, you can cut back on unnecessary spending (e.g., by using less gas and turning the AC off when you’re not home). Even if you’re ultimately spending more, you can rest assured that you’re only spending money on things you choose to.

2. You can do what you like with your own space

As much as you might love your roommates or partner, sharing a living space isn’t always easy. From disagreements over the thermostat to arguments about messy dishes, living with someone else can be challenging.

When you live alone, you have complete control over your environment. You can decorate your home however you want, keep it as clean or messy as you please, and make all the noise you wish to—without worrying about disturbing your roommates.

3. You can enjoy more privacy

Privacy is a luxury that’s often hard to come by, especially if you live with roommates or family members. We all need a little time to ourselves, and flying solo gives you the chance to unwind and relax in your own space.

You can take a long bath, read your favorite book, or watch TV without feeling guilty about hogging a particular room or making too much noise. And when you’re ready for company, you can invite friends over without having to coordinate schedules or worry about someone else’s mess.

4. You can learn to be independent

The idea of going solo can be scary—but it’s empowering. You’ll learn to rely on yourself more, and as a result, you may find that you’re more capable than you ever thought possible.

From fixing a leaky faucet to paying your bills on time, going solo can help you develop the skills you need to be a responsible and independent adult. And if you ever find yourself in a bind, you’ll know you can always count on yourself to get through it.

5. You can focus on your own happiness

In a world that’s constantly moving, it can be hard to slow down and focus on your own emotions, but when you live alone, you can make your own rules and do what makes you happy—without having to consider anyone else’s needs or feelings.

While there are many benefits to living alone, there are also a lot of costs that you should be aware of before deciding to go solo.

Ongoing expenses

Your ongoing monthly expenses will include:

1. Rent

Unless you own your own home, you’ll need to pay rent. If you live in a city, this can be a significant barrier to living alone. The average rent for an apartment in Boston, for example, is $3,634—enough to strain almost anyone’s budget.

2. Utilities

In addition to rent, you’ll also be responsible for paying your own utilities, which can add up quickly.

According to several online sources, the average monthly cost of utilities—including electricity, gas, water, internet, and cable—is $370, and in some expensive states, like California, the average monthly cost is closer to $400.

3. Food

Eating out all the time can get expensive, so you’ll need to plan for groceries. When you’re living with roommates, you can sometimes share expenses, but when you’re flying solo, you’ll have to shoulder those costs on your own.

4. Insurance

It’s important to have renters insurance to protect your belongings in case of theft, damage, or natural disaster.

The average renter’s insurance policy costs about $174 per year or $15 per month. This isn’t a huge expense, but it’s one that you’ll have to budget for by yourself.

5. Other living expenses

Gym memberships, phone bills, transportation costs, streaming subscriptions, pet costs—the list of incidentals and expenses goes on and on. Here again, when you live alone, you’re the only one responsible for footing the bill, whereas when you have roommates, you can often share them (e.g., by doubling up on a Netflix subscription).

Upfront expenses

There are also several one-time expenses you’ll have to shoulder right off the bat when you move out on your own:

1. Moving costs

If you’re moving into a new place, you’ll need to factor in the cost of renting a truck or hiring movers. If you’re moving to a new city, you may also need to pay for things like storage fees and plane tickets.

2. Deposits

Most landlords require a security deposit, which is typically equal to one month’s rent. You may also need to pay a pet deposit if you have a furry friend.

3. Furniture

We all want a touch of home, even if we’re living in a studio apartment, but furnishing an entire place can get expensive fast. A couch, coffee table, and TV stand can easily set you back a few thousand dollars.

How much does it really cost to live alone?

The answer to this, of course, depends on a number of factors—like where you live, your lifestyle, and how much stuff you have.

According to some sources, the average person spends about $3,180 per month to live alone, but if you live in an inexpensive area, you probably won’t have to pay anything close to that. On the other hand, if you live in downtown San Francisco or New York City, you might have to pay substantially more.

As you can see, living alone is a luxury that doesn’t come cheap, but it’s within reach for most people. These tips can help you afford it:

1. Learn the importance of money management

Money management is key to affording any lifestyle—not just to living alone. That said, when you’re solely responsible for your finances, it’s even more important to understand money management concepts like financial planning, goal setting, investing, and saving.

While there are several resources you can turn to for help, one of the best ways to learn about money management is to simply start practicing it. Track your spending, define your financial goals, and start working towards a more secure future.

There are a few ways to kickstart your money management:

• Automate your finances: Setting up automatic payments for your rent, utilities, and other regular expenses can help you avoid late fees and keep your finances on track.
• Cut back on unnecessary expenses: Take a close look at your spending and see where you can cut back. How often do you eat out? Do you really need that gym membership? Are there any other areas of your budget where you can save?
• Evaluate your debt: If you have debt, take a close look at the interest rates and terms. Are there any ways you can consolidate or pay off your debt sooner? Yes? Great! No? Start looking for ways to earn extra income and put that towards your debt.
• Build an emergency fund: An emergency fund is crucial to any financial plan, and when you’re living alone, it’s even more important to have a cushion in case of unexpected costs—like a job loss, medical emergency, or car repair.

2. Get creative with your living situation

If the thought of shelling out $3,000+ per month to live alone gives you sticker shock, you’re not alone. Arguably the main reason people choose to live with roommates is the high cost of living.

So what’s the solution? Get creative with your living situation.

You can look for an apartment with fewer amenities or choose a location that’s further from the city center. And if you’re really looking to save, you can even consider alternative living arrangements like house-sitting, RV living, or couch-surfing.

Of course, there are trade-offs to every decision, so it’s essential to weigh the pros and cons of each option before making a decision. But by thinking outside of the box of renting a traditional apartment, you may find a place that’s more affordable and suits your needs.

3. Consider the cost of living in your area

Again, the cost of living varies widely from place to place. Depending on where you live, living alone can be incredibly expensive—or surprisingly affordable.

Consider factors like the cost of housing, transportation, food, and utilities in your area. Also, be sure to factor in the cost of your chosen lifestyle. If you love to eat out and travel, those costs will add up quickly.

To get a better sense of the cost of living in your area, check out websites like Numbeo and Expatistan. These websites offer cost-of-living comparisons for cities all over the world.

4. Create a spending plan

No matter how much (or how little) you earn, creating a spending plan is critical to affording any lifestyle.

When you’re living alone, you have complete control over your finances, and while that may sound liberating, it also means you’re solely responsible for your financial well-being.

Find out how much you need to save before you move out, then evaluate your income and expenses to devise a plan.

It helps to answer questions like “how much do I bring in each month?” and “how big are my regular expenses (like rent, utilities, transportation, food, etc.)”? Once you have a clear picture of your cash flow, you can start making adjustments to ensure your spending aligns with your goals and values.

For example, if you want to save for a down payment on a house, you’ll need to ensure your spending doesn’t exceed your income. And if you’re looking to travel more, you may need to cut back on other expenses to free up cash for your travel fund.

The bottom line is that living alone gives you the freedom to choose how you want to spend your money, but with that freedom comes responsibility. Be sure to create a spending plan that works for you.

5. Build your credit score

Regardless of whether it’s good or bad, your credit score plays a role in determining whether or not you can live alone.

If you have a healthy credit score, you’ll be able to get loans and lines of credit with much lower interest rates, which can make it easier to afford an apartment. What’s more, many landlords will run your credit before agreeing to rent to you.

Fortunately, there are a few things you can do to improve your credit score. Make sure that you’re:

• Paying your bills on time
• Keeping your credit card balances low
• Avoiding late payments
• Limiting the number of hard inquiries on your credit report
• Signing up for a credit monitoring service

6. Make extra money with a side hustle

Thanks to the gig economy, there are more opportunities than ever to make extra cash, and when you’re trying to afford living alone, every little bit helps.

Consider picking up a part-time gig or two. You can make money by driving for Uber or Lyft, pick up gigs on a dog-walking app, or start another type of side hustle, such as:

• Selling items on Etsy or eBay
• Becoming a freelance writer
• Watching videos and taking surveys about them for money
• Doing odd jobs for neighbors or friends
• Starting a YouTube channel
• Making money by blogging

Also, consider asking for a raise! If you’re already working full-time, there’s no harm in asking for a little extra cash. Just be sure to do your research and prepare a solid case for why you deserve it.

7. Move closer to work

While living close to work might not be your ideal situation, it can save you a lot of money in the long run.

For starters, you’ll save on transportation costs. If you can walk or bike to work, you’ll eliminate the need for a car—or at least cut down on your monthly gas-related expenses.

You’ll also save time. The less time you spend commuting, the more time you’ll have to enjoy yourself—or make extra money with a side hustle.

Lastly, you’ll also reduce your stress levels. According to the U.S. Census Bureau, the average commute time in the US is 26.1 minutes. If you can avoid a long commute, you’ll likely be happier and less frazzled throughout the day.

As the saying goes, time is money—every minute counts when you’re trying to afford living alone.

8. Make your home more energy-efficient

One way to save money—and the environment—is to make your home more energy-efficient. By taking a few simple steps, you can lower your energy consumption (and your monthly bills).

Here are a few ideas to get you started:

• Install energy-efficient lightbulbs
• Replace old appliances with energy-efficient models
• Seal cracks and gaps around doors and windows
• Add insulation to your attic and walls
• Install a programmable thermostat
• Turn off electronics when you’re not using them
• Wash clothes in cold water
• Line dry clothes when possible
• Use a power strip to save energy
• Start a compost pile
• Plant trees or shrubs to shade your home

It’s also a good idea to shop around for energy-efficient products. Many utility companies offer rebates and discounts on energy-efficient items.

There you have it—eight tips to help you afford living alone. It’s not always the easiest thing in the world, but with a little planning and effort, you can make it work.