Renters today face significant challenges. Housing costs are rising, affordable options are limited, and balancing everyday expenses with long-term financial goals can feel overwhelming. For many, achieving financial stability while renting might seem out of reach.
The good news? With thoughtful planning and the right housing choices, you can take control of your finances and make real progress. Coliving, particularly through PadSplit, offers an innovative solution that helps renters save money, reduce debt, and achieve greater financial flexibility. Here’s how it can help you reach your top financial goals.
Build a financial safety net
Unexpected expenses like car repairs or medical bills can throw off your budget. An emergency fund—three to six months’ worth of expenses—provides the cushion you need to handle life’s surprises. But for many renters, saving feels out of reach when move-in costs and fluctuating utility bills take up most of their income.
PadSplit’s move-in costs start as low as $100—far less than the thousands traditional rentals require. Weekly payments that include rent, utilities, and Wi-Fi eliminate unpredictable bills, making it easier to set aside money consistently. Members also find creative ways to save by carpooling or sharing household essentials.
To start building your emergency fund:
- Open a separate savings account to keep your emergency funds safe.
- Automate weekly contributions, even if it’s just $10 or $20.
- Use budgeting apps like Mint to track your spending and identify where you can cut back.
A well-built emergency fund doesn’t just protect against unexpected costs—it provides peace of mind and greater financial independence.
Pay off high-interest debt faster
High-interest debt can feel like a weight that’s impossible to lift. Paying only the minimum each month means most of your payment goes toward interest rather than the balance. Breaking free from this cycle requires extra cash to make larger payments.
PadSplit members save an average of $332 monthly compared to traditional rentals. That money can go directly toward paying off debts faster. For example, adding $332 to your monthly payment on a $5,000 credit card balance at 18% APR could save hundreds in interest and help you pay off the debt faster.
Take control of your debt with these steps:
- Focus on paying down the highest-interest accounts first to minimize total interest paid.
- Use the savings from coliving to make extra payments toward balances.
- Consider consolidating your debts into a single, lower-interest loan for simpler payments.
By lowering your housing costs, PadSplit gives you the flexibility to take meaningful steps toward becoming debt-free.
Improve your credit score
A strong credit score is essential for unlocking better loan terms, lower interest rates, and future housing opportunities. However, many renters don’t see their rent payments reflected in their credit history.
PadSplit addresses this gap through its partnership with Esusu, a platform that reports rent payments to major credit bureaus. This system allows members to build their credit scores simply by paying rent on time. In fact, 95% of PadSplit members have improved their credit scores through this system.
If you’re focused on improving your credit, try these steps:
- Set up autopay for your rent payments to avoid missed deadlines.
- Track your credit progress with tools like Credit Karma or Experian.
- Keep your credit card balances low—ideally below 30% of your available credit.
Improving your credit score isn’t just about numbers—it opens the door to lower interest rates, better loan terms, and future housing opportunities.
Save for long-term goals
Big goals like buying a home, starting a business, or going back to school require careful planning and consistent saving. For many renters, however, traditional leases leave little room to save. High housing costs, combined with rigid lease terms, make it difficult to allocate funds toward future priorities.
With PadSplit, renters typically spend 40 to 50% less on rent, freeing up significant funds over time. These savings can go directly into a high-yield savings account to build a down payment, start a business fund, or cover educational expenses.
Here’s how to prioritize your long-term goals:
- Define your goal clearly and set a timeline for achieving it. For example: “Save $12,000 for a home down payment in three years.”
- Open a separate savings account specifically for this purpose to keep funds organized.
- Use tools like PadSplit’s Member Savings Calculator to estimate how much you can save and set realistic milestones.
Turning your housing savings into meaningful progress toward long-term goals is easier with a plan in place.
Simplify budgeting and reduce financial stress
Managing multiple bills—rent, utilities, internet—can be overwhelming, especially when surprise costs like repairs or fluctuating utility rates come into play. Simplifying your finances by consolidating these costs is one of the easiest ways to reduce stress and stay on track.
PadSplit combines rent, utilities, and Wi-Fi into one predictable weekly payment. Many homes are also located near public transit, helping renters save on commuting costs. Members enjoy private, lockable rooms and secure entry systems, with background screenings where available, ensuring a comfortable living environment.
Simplify your finances with these steps:
- Use budgeting tools like PocketGuard to track income and spending in real time.
- Review your budget monthly to identify unnecessary expenses and adjust accordingly.
- Apply the 50/30/20 rule: 50% for essentials, 30% for wants, and 20% for savings or debt repayment.
A predictable housing cost makes managing your overall budget much easier, giving you more time to focus on reaching your goals.
Why coliving is the ultimate housing solution for renters in 2025
PadSplit isn’t just housing—it’s a stepping stone toward financial freedom. By lowering costs, building credit, and giving you room to save, coliving offers renters a way to take control of their finances and plan for the future.
If you’re ready to take control of your finances, explore PadSplit’s Rent Savings Calculator or browse available rooms today. Your next step toward financial freedom could start here!
