Being single comes with many perks—freedom, independence, and the ability to live life exactly how you want. No compromises on where to live, how to decorate, or what to watch on TV. However, one aspect where being single might feel like a disadvantage is finances. The so-called “singles tax” refers to the extra costs you face when navigating life solo, like paying more per person for rent or even for a cruise. 

8 Smart Ways to Cut Costs and Thrive While Living Solo

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• Allocate 30-33% of your income to housing expenses, including rent and utilities, to ensure financial stability while living solo.
• Decide which features in a home are non-negotiable, and be ready to compromise on extras to stay within your budget.
• Explore options like finding a compatible roommate, downsizing to a smaller space, or reducing non-housing expenses to make solo living more affordable.

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According to a recent report from Zillow, singles living alone in a one-bedroom home spend almost $7,000 more per year than they would if they split costs with a partner. And if you’re in a high-cost city like New York, that extra expense can soar to $19,500 more per year! Living alone can be a costly venture.

Here are 8 smart strategies to help you make solo living more affordable.

Find Your Financial Comfort Zone

Let’s start with the basics, which is your budget. As a single person, you’re footing all the bills yourself, so knowing exactly how much you can afford to spend on housing is crucial.

Real estate expert Nicole Beauchamp from Sotheby’s International Realty suggests setting a limit of 30% to 33% of your income. This percentage isn’t just about rent—it’s the total cost of housing, including utilities and other related expenses.

By sticking to this guideline, you’ll have some financial breathing room if your income changes unexpectedly. Keep that in mind as you browse listings, and be strict about what you can realistically afford.

Decide What Really Matters

We all have a wish list for our dream home: a great location, lots of space, a gym in the building, or maybe even a rooftop pool. But when you’re living solo, you might not be able to have it all. It’s essential to figure out what matters most to you.

If you love being in the city’s heart, consider choosing a smaller apartment to stay within budget. Or if you need more space, you might have to give up some fancy amenities like a doorman or a building gym.

Determine what’s non-negotiable for you and what you can live without. By setting your priorities, you can make better choices that align with your needs and your budget.

Don’t Rule Out a Roommate Just Yet

Living alone is a luxury that many singles cherish, but it can be pricey. If you’re struggling to find a place that fits your budget, sharing a home with a roommate could be a great solution. So, finding the right roommate is crucial. You want someone who is reliable, responsible, and financially stable.

Beauchamp suggests starting with people you know or getting recommendations from trusted sources. Don’t be shy about asking tough questions like job status, income, and credit history. Make sure to check references from previous roommates to avoid potential issues. After all, a bad roommate can create more stress than they’re worth, so it’s better to be safe than sorry.

Try Short Term Rentals (But Proceed with Caution)

If your living situation allows for flexibility, consider short-term rentals. These arrangements can offer freedom and reduce the commitment of long-term leases. However, be aware that short-term rentals often come with higher costs due to booking fees, cleaning fees, and other charges.

Beauchamp points out that short-term rental hopping could be viable for someone who lives a minimalist lifestyle and doesn’t mind a bit of a nomadic existence. But if you need stability and comfort, it may not be the best route for saving money in the long term.

Look for Ways to Save on Non-Housing Costs

Sometimes, your location is non-negotiable. If you must live in a certain city for work or personal reasons, finding ways to cut costs elsewhere can help balance your budget. For example, use your living space wisely by hosting potluck dinners or home happy hours instead of going out.

Consider alternatives to traditional grocery shopping, like meal delivery services, which offer more affordable options than daily takeout. Small changes in your spending habits can add up over time and give you a little extra cushion in your budget.

Have Realistic Expectations for Moving to a Big City

Living in a big city can be thrilling—there’s always something to do, meet people, and explore places. But it can also be incredibly expensive, especially when you’re living solo. Before you sign that lease, make sure you’re moving to a big city for the right reasons.

If socializing and networking are at the top of your list, think about how much you’ll actually be able to enjoy these activities if a large portion of your income goes toward rent. Sometimes, choosing a less expensive city or neighborhood can provide a better balance between enjoying your surroundings and maintaining financial stability.

Consider Renting a Smaller Space

A smaller space doesn’t have to mean less comfort. Downsizing can significantly reduce your rent, utilities, and other related costs. A small apartment can be cozy and efficient if you’re strategic about it. Think about what you really need and what you can do without. A smaller living space also means less maintenance, freeing up more time for things you love.

Look for Discounts and Deals

Finally, don’t overlook the value of discounts and deals. Many cities offer discounts on utilities, transportation, and even rent for those who qualify. Look into local programs, especially if you’re a student, senior, or belong to a particular profession. Every bit of savings helps, and taking advantage of these offers can lighten the load on your budget.

Living alone has its challenges, especially when it comes to finances. But by being strategic about your choices and open to new possibilities, you can make solo living more affordable and enjoyable.

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