Financial Tips for Renters: How to Save Money and Take Control of Your Finances

The 30% Rule

One of the first financial rules for renters is the 30% rule, which suggests that no more than 30% of your gross income should go toward rent. For example, if you earn $4,000 per month, aim to spend no more than $1,200 on rent. This leaves room for other essential expenses like utilities, groceries, and savings.



While this rule is a helpful starting point, remember everyone’s situation is unique. Consider your other financial commitments before deciding how much you can afford to spend on housing.

Creating a Realistic Budget

The key to financial stability as a renter is crafting and sticking to a budget. Start by tracking your income and listing your expenses—both fixed (like rent and utility bills) and variable (like dining out or shopping). Apps like Mint or YNAB (You Need A Budget) can help you see exactly where your money is going.



Once you have a clear picture, allocate your funds wisely to ensure that all essentials are covered and that you’re contributing to a savings account regularly.

Budgeting Tools and Resources

• Mint ensures all your expenses are accounted for in one place.
• YNAB (You Need A Budget) is an excellent option if you prefer a proactive approach to planning every dollar you spend.
• PocketGuard ensures you’re not overspending by showing how much you have left after covering essentials.

Understanding Renter’s Insurance

Renter’s insurance protects your belongings and offers liability coverage in case of accidents within your rental. Many tenants assume that a landlord’s insurance will cover their property in case of theft or damage—it won’t. Renter’s insurance is affordable and ensures you’re protected from the unexpected, like a fire or burglary.

Common Misconceptions About Renter’s Insurance

• “It’s too expensive!” False. Most policies cost between $10–$20/month.
• “I don’t own expensive stuff.” You don’t need a designer wardrobe for insurance to be valuable—it protects basics, like your furniture or laptop.
• “I’ll never need it.” No one expects accidents, but having a safety net is invaluable.

Choosing the Right Policy

When choosing a renter’s insurance policy, compare multiple providers to find one that fits your needs. Look for coverage that protects against theft, natural disasters, and liability while ensuring premium affordability.

Saving Money While Renting

NOAH Property Management Case Study

NOAH Property Management offers solutions designed to ease renters' financial burdens while fostering economic mobility.

1. Deposit Alternatives

• NOAH offers affordable deposit alternatives, allowing renters to pay a manageable monthly fee instead of a hefty upfront deposit. This can free up hundreds of dollars when moving in.

2. FlexPay Program

• This innovative program allows renters to pay rent in smaller installments, aligned with their income schedule. With a 36% reduction in eviction rates among FlexPay users, it’s a financially empowering solution for tenants under pressure.
  

3. Positive Credit Reporting

Partnering with Esusu, NOAH reports on-time rent payments to credit bureaus. This helps renters build their credit scores—leading to financial growth. On average, tenants see a 25-point credit score increase in their first year, with long-term users gaining up to 44 points.

4. Economic Mobility Impact

By implementing these strategies, NOAH improves tenant satisfaction and economic stability, creating a supportive community where renters can thrive.

• Pay Rent On Time: Timely payments not only avoid late fees but can also boost your credit if reported to bureaus.
• Utilize Rent Reporting Services: Platforms like Esusu help leverage your rental payments to improve your credit. Programs like NOAH’s enroll tenants automatically, making it seamless to build credit history.
• Other Strategies: Use a secured credit card or become an authorized user on a family member’s account to establish credit while staying on budget.

Avoiding Common Financial Pitfalls

Overspending on Non-Essentials

Track your discretionary spending—small purchases can quickly add up. Identify areas where you can cut back without feeling deprived.

Ignoring Late Fees

Late fees on rent or utilities can strain your budget unnecessarily. Set up automatic payments or schedule reminders to avoid missing due dates.

Neglecting an Emergency Fund

Life happens—prepare for the unexpected with an emergency fund. Aim to save 3–6 months’ worth of living expenses for peace of mind.

Resources for Renters

Here are several free or low-cost resources for renters seeking financial assistance or support.



• Government Programs: Look into local housing assistance programs and Section 8 housing vouchers.
• Non-Profit Organizations: Resources like Habitat for Humanity or Catholic Charities offer aid in specific regions.
• Online Tools: Use free calculators or tools provided by financial literacy sites, such as NerdWallet or SmartAsset.

Taking control of your finances as a renter doesn’t have to feel overwhelming. By following these tips—budgeting for rent, saving money on everyday expenses, leveraging tools like renter’s insurance, and exploring programs like NOAH’s—you can make renting a stepping stone to a brighter financial future.

Remember, every small step you take now makes a big impact in the long run.

Looking for additional support? Explore NOAH Property Management to find innovative housing opportunities that make financial empowerment a reality.