Owning your residence has its share of maintenance costs and expenses for upkeep. On the other hand, when you rent, of course, you need to take good care of your abode, but you may have fewer worries when it comes to the property.
Since you have to set aside a fixed amount per month for your rent, you have to live within a budget. Let’s take a look at some budgeting tips for renters so that you get to survive within your means.
Figure out what you’re bringing in and what you’re spending on.
Okay, it’s time for a reality check. If you only earn so much, what are the other items that make up a bulk of your expenses? After taxes, how much is left from your monthly income? Deduct the amount that you need to pay for utilities (light and water), Internet, mobile device, grocery items, and fuel. By keeping in mind your monthly expenses, you’ll better understand your present financial position.
Time to cut out frivolous spending.
After figuring out what you’re spending on, it’s time to determine what you can save on. Maybe you really don’t need that additional cable subscription. Perhaps you can take the time and effort to switch off all the lights before you go to sleep. Maybe you don’t need to dine out. You’ll probably enjoy preparing meals at home even more. Use a blanket or put on a comforter instead of turning up the heat. The goal is to save more each month instead of burning a hole in your pocket.
Nurture fiscal discipline
By putting this into practice, you get to enjoy more of the simple things in life. So, who cares if you don’t have the latest gadgets or that you keep up with what’s “in”? Once you accept that your smartphone still works fine and your clothes are still decent, there’s no need to go crazy and irresponsibly go on a spending spree. What you presently own is adequate and gets you to where you need to be.
Keep an emergency fund
When you strictly follow a budget, you’ll be surprised as to how much you are able to save. Don’t blow it all because you just have to purchase that giant television. Look into safe investments that can give you a better return. Consider opening a high-yielding savings account that you can conveniently forget that it’s even there. Do your best to set aside about three to 10 percent of your monthly income for an emergency fund. It can increase over time, but the point is to build it so you have something to use when absolutely necessary.
It may take a whole lot of willpower and discipline, but it will pay off. Don’t just save money to pay for the rent but make sure to prepare yourself to meet the challenges of life.