process
House Hacking
The rule
Rent out a room so your home helps pay its own bill.
Where it flips
A bad tenant or lost privacy can cost more peace than the rent is worth. The repair is to choose the tenant carefully and count the comfort you are trading, not just the rupees.
Housing is usually the biggest cost a household has. Make your home earn instead of only draining money. Rent a spare room or a portion of the house. That rent cuts your own housing bill, sometimes to almost nothing. The money you save each month can then go straight into your investments.
A worked example
Aarohi rents one room of her flat for 12,000 a month. Her own housing cost drops from 25,000 to 13,000, and the gap goes into her SIP. [illustrative]
How to spot it
- ·A spare room sits empty every month
- ·Housing eats a huge slice of your income
- ·You never thought of your home as able to earn
Scott Trench · Set for Life