63
Chapter 4: Cutting Spending and Boosting Income
Book I
Taking
Charge
of Your
Finances
Renters
Following are some options to consider if you're renting:
If you're close to the end of your lease, find a cheaper place to live. If
you've got time left on your lease, read your lease agreement to find out
how much it costs to break it so you can move out early.
Move in with your parents or other relatives while you work on improv-
ing your finances.
Stay where you are, but get a roommate, if your lease allows.
Homeowners
If you own your home, consider the following possibilities:
Look into mortgage refinancing to lower your monthly payments. Be
careful, however, about refinancing with a mortgage that may create
problems for you down the road, like an interest-only mortgage or one
with a big balloon payment at the end. If you're confused about whether
a particular mortgage is good or bad for your finances, talk to a financial
advisor, a nonprofit credit counseling agency, or a real estate attorney.
Rent out an extra room in your home.
Lease your home to someone else and move into cheaper digs. Make
sure the rent you charge covers your mortgage payments plus the cost
of your homeowner's insurance, property taxes, and routine mainte-
nance and repairs.
Sell your home. We know this may be a lot to ask, but if you're paying for
more house than you can truly afford, getting out from under the debt is
a good thing.
Lowering your utility bills
The cost of heating and cooling a home always seems to go up, up, up. Add in
the cost of water, wastewater, and lights, and you may find yourself gasping
when you open your utility bills each month. Consider these suggestions for
bringing down these costs:
Use your heat and air conditioning less by keeping your home cooler in
the winter and warmer in the summer. Keep your thermostat set at 68
degrees in the winter and no less than 78 degrees in the summer.
Lower the temperature on your water heater, but not to less than 120
degrees.
