Advice for Not so Frugal Apartment Renters

**misstina87** · 08-04-2009, 10:37 AM

So long story short, I have three friends who have decided to move into an apartment together. They won't be moving in until around October 1st. All 3 work in retail so it's not like they make a lot of money. I helped them make a budget to see if they could comfortably afford the apartment. They can get by with the things they need but they only have about $50 each leftover after the bills are paid. I don't want them to be struggling if they don't have to. They can be frugal but not as frugal as myself. One of them is willing to be as frugal as I am. The other two know the basics of frugality (like turning the lights off when they're not using them, leaving the AC at around 78, etc.) but that's all. Is there any advice you can give them right now so that when October 1st rolls around, they're more prepared?

**Grainlady** · 08-04-2009, 01:26 PM

1. Have a brainstorming session to discuss being frugal and the benefits... short-term AND long-term benefits. Each person will have different ideas about the subject. I've studied the subject for eons and still learn new things all the time.

2. $50 isn't a very good cushion, especially with Christmas just around the corner. Is Christmas going to be a craft this year? I'd stress a debt-free Christmas because this is one place people tend to lose control. Discuss ways to make some extra money (dog walking, house setting, extra job....). A young friend of ours needed money to purchase one more text book for college. Rather than put it on a credit card, she got her work clothes on (even though she wasn't scheduled to work), went to the fast-food place where she worked and asked if anyone would like the day off, she'd work their shift. When she needs extra money, she works extra hours. When you start to figure how many hours you need to work to purchase things, all the sudden "things" have new meaning.

3. Discuss how much money can be saved by making meals, rather than eating out. Share cost-savings recipes/menus (check your local library for cookbooks and other frugal books). If you do eat out, what's the least you can spend. Example: Hubby and I occasionally purchase a $5-footlong sub and have them cut it into 4 pieces. We have enough for supper, and enough for lunch the next day - that's cheap eating out.

4. Stress the importance of having AT LEAST a mini-emergency fund of $500, working towards $1,000, and just what IS an emergency. I cut my own hair, so I don't consider a $100 trip to the salon for highlights and a hair cut an "emergency". Something as simple as saving $1-bills and using that to fund an emergency fund will be a positive move.

5. How to save for things, rather than using credit cards. Crunch the numbers. For instance... a coat purchased at 15% off isn't much of a bargain if you pay 26% interest on the credit card if you carry over a balance.

6. Encourage everyone read Dave Ramsey's book/s (get them from the library), or attend classes (often given at churches), or listen to him on the radio or on-line. http://www.daveramsey.com/ If nothing else, post a copy of the "Baby Steps".

http://www.daveramsey.com/etc/cms/ba...d=Useful_Tools

**Greebo** · 08-04-2009, 02:03 PM

Did they ask for your help?

**shoiji** · 08-04-2009, 03:26 PM

Quite frankly I would say that they could not afford getting an apartment together. If they are only going to have $50 each after paying bills, what about food, gas, car insurance, etc? Or I would say find an additional person to rent with or an apartment with a much lower rent. I don't know exactly the budget you worked out for them. But if they are moving out on their own for the first time, they really need to watch their pennies. Unfortunately, this may be a difficult thing for some people to handle.

I don't mean to be a downer, however if they are all friends now, it could really put a strain on their relationships if one or all were unable to afford to pay a bill on time. They should try practicing to live as if they are in an apartment now budget wise to see if they have the self discipline to manage a really tight budget. Because it really does sound as if it will be a very tight budget. Since you made a budget for them it sounds as if they have never lived on a budget before. Leaving very little room for entertainment, vacations, clothes, going out to eat. Being able to see if they can actually live without those types of things has to be looked at realistically.

I think it is great you helped them with working out a budget. Hopefully this will help to open up their eyes as to what lies ahead of them. I think that I stress this message since so many times people go into really horrible debt because they are used to living a certain way. Especiallly when they are young, and it is their first time living on their own.

If they do go ahead with the move, I wish them all the best. This website has great advice. Also tell them that credit cards are not to be used like extra money. Also tell them to get the word out to family and friends that they are moving and in need of whatever they may need for the apartment. This could definately help with setting up a kitchen, furniture needed, etc. Plus they need to figure out what bills will be in whose name, when bills will be paid, etc.

This may not be the information you wanted to hear, but speaking from experience, I think it is important to hear.

**Contrary Housewife** · 08-04-2009, 03:38 PM

They need to get together and discuss responsibilities. This includes things like agreeing to turn off lights, and what temps the heat will be set at this winter. Are all names on the rental agreement? What happens to the other 2 if someone gets mad and moves out? Who cleans the microwave? (I swear, we had more arguments about this than anything else when I had roommies). Who is buying the toilet paper? Who is paying for cable? Phone? Long distance calls? What are the rules on overnight or short term houseguests?

You say they work in retail. Does anyone get an employee discount that could benefit them as a group? One of my old housemates worked at Sam's club, so we did bulk shopping there on his membership to buy things like toilet paper and soap and 25lb bags of rice that we all used.

**dcompton** · 08-04-2009, 06:15 PM

Like Shoiji, I see a really bumpy road ahead of this friendship. They are going to stressed about money on such a tight budget (and if they're not, that's worse), and that can make things fray very quickly. That can be tough even on a marriage, but in a simple federation of three? Wow. And if, as some have surmised, these are young people, maybe getting their first taste of real independence and being on their own, it's going to be even harder to stick to the necessary black belt frugality this is going to take.

Contrary Housewife is right on target. They need to sit down and be very clear about who does what chores and when, and who is responsible for which bills. I assume that all the names will be on the lease -- I think that's pretty normal. They need to be realistic about what will happen if the "divorce" comes, as it may.

I feel like a prophet of doom, but they need to be very clear about how much self-discipline this will require. I supervise college students, and I can vouch for what a shock it is when they fully realize just how much it actually costs to live.

I too wish them well, and they may manage just fine. But I think the most important thing is to have clear agreements, from who gets which room and the best parking space down to expectations for housekeeping - slobs and neatniks living together can make for an unhappy life.

Another thing that just occurs to me is that there need to be some guidelines on privacy. And to establish that if one of them just wants to go in his/her room and shut the door and Not Interact for an evening, it's ok. I've seen that be a bone of contention. You know... "what's wrong with her? Is she mad? What did WE do to be ignored like this!"

Good luck to them. You are kind and brave to help them. Not many frugal tips, but they'll find those if they are committed to this.

**frugalfranny** · 08-04-2009, 07:01 PM

Have them read this website.

Discuss things first.............buy a set of boxing gloves for each.

Is the $50 after food and ALL.......or just utilities? They could get pretty hungry.

**Karen1** · 08-04-2009, 08:44 PM

It is nice of you to want to help, but this is "kinda their experience" and they should be just allowed to handle it as they see fit.

Nothing wrong with some frugal advice, every needs that but you mentioned that "you don't want them struggling"----problem is life is a struggle for most of us at some point. And everyone has to have their own experiences.

I say let them have at it and just try to do all the advice on this website that we bash around all the time. eat meals at home, shop sales, no useless spending, etc. If they are younger, then party time and other entertainment money is needed. I know I sure spent money when younger having a good time...LOL

best of luck to them but like another said, not to be a downer, but usually the rent an apt. with friends thing almost nevers works out. But if they are lucky and the 3 of them can truly work together, it might just work out fine.

**misstina87** · 08-04-2009, 09:31 PM

Originally Posted by Karen1

It is nice of you to want to help, but this is "kinda their experience" and they should be just allowed to handle it as they see fit.

Nothing wrong with some frugal advice, every needs that but you mentioned that "you don't want them struggling"----problem is life is a struggle for most of us at some point. And everyone has to have their own experiences.

They asked for my help because they know my frugality has saved me boatloads of money. I was just looking for some tips I could give them that would allow them to save more money.

Someone else asked if the $50 is after gas and food, etc. Yes. The $50 leftover every month is extra money that isn't budgeted.

**Karen1** · 08-04-2009, 09:40 PM

Originally Posted by misstina87

They asked for my help because they know my frugality has saved me boatloads of money. I was just looking for some tips I could give them that would allow them to save more money.

Someone else asked if the $50 is after gas and food, etc. Yes. The $50 leftover every month is extra money that isn't budgeted.

WOW that is great they asked you for help since they see you budgeting so well and being accomplished at it!!

I do have to say though that $50 A MONTH is not much leftover at all. That is only less than $15 per week for leftover. Most people could blow thru $15 in a minute let alone a week...LOL-LOL

one thing to mention to them is be sure to try to save some type of savings for the group. Even if it is $2 per person per week, just sock it away in case of emergency. There is always that stupid emergency situation that needs cash. So while they get great hints from you to save money, at the same time they need to be making that small cash emergency fund for themselves.

I hope they do well!! Is this the first time they are out on their own? If it is, I bet they are super excited!!!

**spyzvixxen** · 08-04-2009, 11:08 PM

This is one of those life lessons people need to learn on their own. I've had too many friends get caught up in the "playing house" idea only to come crying later on that I was right.

Establishing ground rules from the get-go is essential regarding common areas, cleaning duty, who pays for what, etc.

**Nishu** · 08-05-2009, 12:17 AM

If a peaceful home is going to require the strict adherence to a frugal lifestyle by all three parties, there is absolutely NO WAY that I would be rooming with these people. They may mean to stick to the budget, but we're all human and we all screw up occasionally. Difference is, most of us don't have friends relying on us to pay our bills in order to keep the electric on. One screw up and there's going to be a lot of bad feelings.

I wish them the best just like I'd wish anyone the best, but it's not a situation that I would be willing to put myself in.

Sorry that's all I got for advice.