Posted on November 1st, 2008 by admin

There is another strategy that allows singles or single parents to live free even while renting, and that is to sublet rooms to other singles.

Years ago, when I was single and on a limited budget, I used this strategy to live in comparative luxury in a magnificent home that was much more than I could have afforded by myself. The house was almost 5,000 square feet with five bedrooms in a posh suburb of Washington, D.C., and the rent was the equivalent of about $1,800 per month at today’s prices. Because I was a single parent (my then-young son, Charles III, lived with me) sinking everything I had into the business empire I was building, that much rent money was more than I could handle alone.

The solution was simple and worked so well that I still recommend it to singles and single parents who want to live the good life before their ship comes in. I rented out three bedrooms to friends, and the income paid the rent. Although four single adults were living in the house, I divided the total rent by only three. My renters paid the entire rent. I was living free in a magnificent home. Two of the three worked the evening shift on their jobs so the house was virtually empty during the evening when Chuck and I were home. During the day when we were gone, the night-shift renters had the place to themselves. There was a house rule about no friends or parties in shared areas of the house when others were home, and everyone had assigned housecleaning duties.

This strategy saved me the equivalent of over $21,000 in rent for that year, and since the rent money went directly to the landlord for a home I did not own, the entire amount was tax free! If you’re single or a single parent looking for strategies that can help you overcome the lack of a second income, start with this one. If you don’t like living with others, you can always go back to that closet-sized apartment you can afford by yourself. In addition, if you are a single parent and already own a home bigger than you need, you can use this strategy to provide much needed additional income.

Tags: finance strategies