How Can I Slash Car Payments and Rent to Move Out at 22?

The last several years have been marked by widespread inflation, causing many Americans significant financial strain. paying their bills .

In February, CBS News partnered with YouGov poll , 77% of Americans stated that their income is not matching the pace of inflation. In March, this trend continued. survey According to findings from Equitable, 80% of Americans spanning all income brackets express concern over increasing living expenses.

Life can be particularly tough for young adults embarking on their careers and yearning for freedom. All at once, you're responsible for covering all those small costs. What happens when you find out you cannot manage to buy everything necessary?

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Picture yourself at 22, eager to leave your childhood home, only to realize you lack the funds for your own pad due to hefty car payments gobbling up most of your earnings. Yet, you require transportation daily just to make it to your job.

What steps can you take to reduce your car expenses? Is there also something you could do to decrease your cost of living?

Tackling high car payments

Several factors might be driving up transportation expenses at this stage. Let’s concentrate on your auto loan and car insurance .

Insurance rates are typically pricier for newer drivers because they are considered more prone to collisions. Additionally, insurance providers evaluate risks according to the vehicle’s brand, type, and security measures. If you drive an upscale car that comes with costly repairs or one that has a greater chance of being stolen, your premium costs will generally be higher.

If reducing your insurance costs is your aim, begin by gathering quotes from various providers to find the most favorable option available. Feel free to engage in negotiations as well, particularly if your driving history has been impeccable up until now. Inquire about additional ways they might offer to decrease your monthly premiums.

Regarding your auto loan, despite current high interest rates, you might still find a more favorable refinancing option if your credit score has gotten better since purchasing the car. Could you tell me what type of car you own? If it’s a brand-new or costly model, you could think about replacing it with something less expensive.

Read more: Auto insurance costs might increase by 8% by the end of 2025—due to tariffs imposed on vehicles and components imported from Canada and Mexico. However, Here’s how just 2 minutes could help you save hundreds of dollars right away.

Rent options

If you're in a situation where you can take your time to find a new place to live, it can pay to be patient and wait for the right rental opportunity to come along.

But if you're still unable to find something in your price range, you might need to adjust your expectations. That could mean living in a different neighborhood than you wanted or a much smaller space with fewer amenities close by.

Still can't find what you want? It might be time to put those dreams of living by yourself on hold. Co-habitating with roommates may not be ideal for everyone, but it's a great way to cut down on living expenses. Not only does the rent get split, but you may be able to save on general household items.

Gain mastery over your money management.

Should you find yourself struggling and unable to stay above water financially due to mounting bills, there are additional measures you can pursue to better your circumstances.

First, set up a budget for yourself Thus, you can monitor each dollar spent. Following this, examine your expenditures and find areas where you might trim costs. It’s likely that certain non-essential expenses could be lessened, such as eating at restaurants or covering fees for subscriptions or streaming platforms. Similarly, conduct an expense check to ensure you’re not being charged for unused service offerings.

If boosting your monthly earnings is what you're after, considering a side gig might be beneficial. It could help you manage expenses better and set aside extra savings for yourself.

And if possible, it's a wise move to start an emergency fund This could require some patience if your finances only allow for minimal coverage of rent and car expenses. However, the purpose of having an emergency fund is to offer protection against unforeseen costs, preventing you from sinking deeply into debt.