Austin renters have more money to save each month than in other cities.
The Austin Business Journal reports that the average Austin renters has $265 left each month after paying expenses. Off the 52 metro areas looked at, Austin is one of just twelve where renters have money left over after living expenses. Renters in Austin have the second most amount of money left over after living expenses. The top city is Virginia Beach, Virginia. Renters there have $883 left after they pay for their apartment and other expenses.
In Texas, four other cities had renters with money left in their pockets:
- San Antonio was number 5 with $163.
- Fort Worth took the 7th spot with $131.
- Houston was 10th on the list with $66.
- Number 11 was Dallas with $55.
In most metro areas, renters without roommates or extra money from outside sources go into debt each month. Boston residents wind up the most in debt. Bostonians spend $2,244 more than they make on rent and living expenses.
Where to Keep Your Savings
Not sure what to do with that money that’s left over each month? It’s unwise to keep it all in a checking account because the rate of return is lower. The best thing to do is to keep enough to cover expenses in that account and put the rest into a savings account with a higher interest rate. Monitor your account closely and transfer additional funds as necessary. Once you’ve got a nice emergency fund of six to nine months of expenses saved up, it’s time to start investing. A financial professional can help you identify the best way to invest your money so it grows quickly.
Not seeing that extra $265 each month? Start budgeting. Software such as Quicken or Mint can help you track where your money is going. Even a simple spreadsheet will do the trick. Once you see what you’re spending where, you can start making steps to curtail your spending and grow your savings!