Weiss recommends spending no more than 25 percent of your annual pretax income on housing costs, which may require some planning. Getting a roommate or housemate is “a classic way to reduce living expenses by simulating a two-income household,” Kelly says. A two-bedroom apartment may cost more than a one-bedroom, but it won’t cost twice as much, and the utilities won’t be doubled.
Kelly also recommends the following ideas to cut housing costs.
Find a unique efficiency apartment or guest house that is part of someone else’s home.
Buy a yurt, recreational vehicle or camper, and rent space on someone else’s land.
Become a caretaker of a property or house sitter.
Combine your work and living space, particularly if you are self-employed.