Consider these smart financial strategies to lower monthly living expenses in Atlanta.
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Consider this: Atlanta’s cost of living is 2% higher than the national average. While this difference might seem small, it can potentially affect your monthly budget over time — depending on your income and which part of town you choose to live in.
Whether you’ve relocated here for a job, or you’re a native wanting to live more frugally, you can find ways to lower your expenses without sacrificing quality of life.
Housing costs in Atlanta
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Housing costs are on the rise everywhere, no matter if you’re renting or buying—and that’s especially true in Atlanta. Renters in Atlanta can expect the average rent to be about $1,852, and the median price of a home in Atlanta runs around $417K. Of course, so many factors play a part in those prices, including location, size, etc., but housing will always be a huge budget item.
As a renter in Atlanta, you’ll have certain advantages. You won’t need a hefty down payment, you won’t be responsible for maintenance issues on a property, and you won’t have property taxes to worry about.
On the other hand, you’re consistently putting money into a landlord’s pocket, rather than building equity and generational wealth through property ownership.
If you decide to rent, there are a couple of obvious ways to manage the cost:
- Explore different areas – Certain neighborhoods in Atlanta tend to be more expensive than others. You’re likely to find lower prices in some of the farther Atlanta suburbs rather than in town.
- Negotiate your rent – This may or may not work for you. In areas with a glut of empty apartments, you may be able to lock in a lease without a rent increase for three years, or to get a pet deposit waived, or some other small-ish adjustment.
If you own your home, there are a few ways to manage your monthly payment.
- Refinance your mortgage – Interest rates ebb and flow — and they are high right now, so a refinance may not be helpful. But it’s something to keep in mind for the future.
- Consider roommates – If you are single or a childless couple, it might make sense to rent out a room to a friend or family member. Clearly this has many drawbacks, but it might be a short-term solution when you’re in a financial bind. Just be clear about expectations, so you don’t damage any relationships.
- Understand your tax benefits – Get familiar with homeowner tax benefits like deductions you can take for mortgage interest and property taxes. While this will not help your monthly budget, you may be able to save money during tax season.
Saving on household expenses
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The cost of household expenses is rising too. In 2023, there was a huge Georgia Power rate hike, and natural gas prices soared in the fall of 2022. Inflation’s impact on groceries and other necessities has been all over the news. So what can you do?
Groceries
With grocery store prices on the rise, you might be paying more for groceries now than you’re used to. Here are some tips to help you save on your grocery expenses:
- Use coupons and shop grocery sales – Check your store’s weekly ad to find coupons or deals. You might save a lot of money on items you were planning to buy anyway.
- Plan your meals – When you plan out meals for the entire week, you can create a list based on your meal plan, which can help to avoid waste and unnecessary impulse purchases.
- Go generic – Name-brand grocery store items can cost a few dollars more than the generic, and most of the time, the quality is pretty much the same.
Utilities
Here’s what you can do to cut back on your utility bills:
- Adjust your thermostat – This is number one! You might think you’d be uncomfortable even with one-degree difference, but there are so many ways to reduce your energy use painlessly and make your home more comfortable while saving on energy costs.
- Change your rate plan – Georgia Power offers several customized rate plans that may help you save. The gas companies all work on fluctuating rates that you lock in to; you can get the best rate by shopping over the summer. Make sure you understand the terms before you sign any contract.
- Consider different billing options – Budget billing and levelized billing allow you to spread out payments more equally over the year, so you don’t get hit with huge summer cooling costs or high winter heating bills.
- Take advantage of special programs – GA Power offers a variety of rebates, incentives, and assistance programs to help you save energy and money. You can get a rebate for certain home improvements like insulation, a senior discount if you’re over 65 and meet income thresholds, and a lower cost on items like smart thermostats and LED bulbs through the GA Power Marketplace.
Transportation costs
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This is a tough one. Atlanta is infamous for its traffic, which increases commuting costs in terms of time spent plus the price of gasoline and parking. We’re the first to admit that the alternatives below are not great options for most people.
- Use public transportation – You may be able to commute via MARTA or one of the regional bus services. But Atlanta is famous for substandard public transport options. (We DO recommend MARTA for getting to festivals, sporting events, etc., give the price of parking in town.)
- Limit car trips – Carpool to work if you can, get the kids in a school carpool, and try to combine errands in a way that doesn’t have you running all over town.
- Evaluate your car insurance – If you don’t shop around every year, you are likely paying more than you need to. Carefully consider if you can afford a higher deductible, or lower limits on damage and liability.
Preparing for financial emergencies
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While there’s no way you can prepare for every emergency you might face, there are a few steps you can take to make sure you are as financially prepared as possible for whatever life throws your way.
- Build your emergency fund – Save between three to six months’ worth of living expenses in a dedicated savings account that’s separate from your regular savings account. Use this account for emergencies only as a financial safety net to help you cover unplanned expenses.
- Get homeowner’s or renter’s insurance – Protect your home and your possessions with a homeowner’s or renter’s insurance policy so you can be sure you are covered for housing emergencies.
- Purchase life insurance – If you have dependents but maybe don’t have a lot of money set aside in case you were to pass away, a life insurance policy can give your family an extra layer of financial security. You can find cheap term life insurance policies online that will fit your budget and give your family the level of financial protection you need. If you were to pass away with an active life insurance policy, your beneficiaries would receive a payout that could then be used to cover living expenses, funeral expenses, and anything else that may be needed.
- Reduce your debt – Prioritize paying off high-interest debts as quickly as possible. This will save you lots of money on interest and free up more money for emergencies.
