They say that one sign of becoming an adult is by having a place of your own. it can be your own rented apartment or room. It means living independently from your parents. It means making your own meals, taking care of your own budget. But how can you build a rent budget that will work out for you? How can you make your earnings enough, so you won’t have to need help paying rent?
Table of Contents
Make A List of Your Rent Expenses
What are your rent expenses? Rent expense doesn’t just include your monthly apartment rent. It includes other expenses and here are some of them.
Basic living expenses
Basic living expenses include house rent, electric bill, water bill, cable/tv/phone bills, and gas if you have a car. These are part of your monthly budget. You need to include this in your expenses if you are building a rent budget list.
Rent
Your monthly rent is constant. This doesn’t change. If you notice that you are getting behind with your rent, you should consider if it is too expensive for you. If you constantly need help paying rent, looking for a cheaper place to stay is your next best option.
Utility bill
Utility services, such as electricity, are considered essential. They are necessary for a comfortable lifestyle as well as a budget-friendly living. You can find the best price for your budget by comparing electricity rates and providers.. Other services such as internet and cable tv are optional. You can have both or just use internet service to stream TV services. Learning how to take advantage of one service can surely help you save.
Other Expenses
When building a rent budget, you have to consider other expenses that you need to pay from time to time. Services such as pest control, additional storage, and garbage pickup are among these expenses.
Find a Way to Reduce Some Expenses
While building a rent budget, look for ways to reduce your expenses. Expenses such as electricity and water consumption can still be reduced to lower your bill. Check your light bulbs if they are energy efficient. Save energy by using cold water for laundry and not a warm one. If you are using a central heating system, make sure that your windows and doors are closed all the time.
Find a Suitable Saving Strategy
To avoid needing help to pay your rent, you should follow your budget. There are unexpected expenses from time to time so be prepare for it too. There are budgeting strategies that you can follow such as:
Big 50 savings
You save 50% of your income and spend the other half on your expenses. The remaining 50% will be spent on utility bills, food, and your monthly rent. If the 50% is not enough, even after reducing your other expenses, then you have to find a new apartment.
Saving 20 – you save 20% of your income
This is more realistic if your monthly income is not that much. You only take 20% for savings and spend the rest for utility, food, and monthly rent. Your emergency savings won’t be much, but you have enough money to pay for your bills. Still, if it doesn’t work and you still need help paying rent from time to time, then you have to find a new place or rebuild your rent budget.
Save 30 – you save 30% of your income
If you think 20% of your monthly income is not enough, you can increase it to 30%. Still, if it doesn’t work, either you change your savings strategy or you find a new apartment.
Conclusion
When building a rent budget, think of one rule. Your cost of living and rent should be within your means. You cannot start building a rent budget if you will always need help paying rent. When saving, it is important to know your budget and your possible expenses.