Before you rent a house, you need a budget and even after you become a tenant you still need to budget. This is because paying for a rented apartment is not a once in a lifetime thing. Once you become a tenant you would need to continuously pay rent till you start to live in your own house which is why you need this budgeting advice.
The following budgeting advice or tips would help you plan financially so as to make it easier for you to live as a tenant.
Be Realistic
It is important that as a tenant you should be realistic and stick to a plan. Although it might be challenging but it is rewarding if you put your mind to it. One golden rule when renting an apartment is to ensure that no more than 30% of your monthly salary is dedicated to paying rent.
This allows you to make financial plans for other crucial aspects of your life; especially necessities. Do not forget that you are not going to eat your rent, you still need to buy food, commute to work, pay other bills and so on, including emergencies that might come up anytime.
However, situations may occur which would make your options limited. For instance, instead of renting an apartment that takes up 30% of your rent, the one you rent might take up to 50% of your monthly income. In this case, what you need to do is to make a budget cut on some other things in order to achieve financial equilibrium. For example, instead of driving and paying for parking space at work, consider using public transportation.
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Have a monthly budget because every month is different.
The need to have a monthly budget cannot be overemphasized. Drawing up a budget for each month helps you keep your financial goals in mind which would, in turn, make you cut down on excesses.
Some months you would have to budget for back-to-school supplies and tuition if you’re married with kids, or routine car maintenance if you own a car. Other months you may need to budget for birthday or anniversary celebration or holidays. Having a budget would prepare for these expenses so that they do not just sneak up on you.
Be sure to adjust your budget each month as things change. Make a savings fund you can stash cash in throughout the year. When you don’t have a plan, you’re going to be stressed. And that takes all the fun out of giving and celebrating.
Track your progress and Be Content
Tracking your progress from time to time is necessary. If you’re married, track your spending and purchases with your partner so that you both keep your goals in sight. Look back at your earlier budgets to see how far you’ve come. And don’t forget to celebrate the small wins and be content. A comparison like they say is the thief of joy and in this case, it is not only joy, it would also rob you of your money. So do not compare yourself with anyone neither should you compete. Keep moving forward and doing what’s right for your family.
Cut Back On Your Spending
This is a major piece of advice everyone needs to see to. Find a way to separate the things you need from the things you want. This would help you avoid unnecessary expenses and prioritize accordingly.
Your goal as a budgeting tenant should revolve around being able to make financial adjustments where necessary. For instance, instead of constantly renewing your membership at the gym, which takes quite some money out of your salary, you can cancel it and adopt morning/evening runs into your workout regimen. You can also cut down on the number of outings or hangouts you attend. Instead of always going out to have fun you can bring the fun into your house, the frequency of your shopping too can be reduced. The number of weddings and other parties that require you to buy expensive fabrics for “asoebi” should also be reduced.
Your goal here should be finding ways to save more of your salary after payday. Budgeting for your rent requires some level of sacrifice and discipline.
Cook more than you eat out
Whether it’s noodles and fried eggs from the Aboki across the road or dinner at a Chinese restaurant every other night, eating out is a more expensive option compared to cooking at home.
If you’re serious about drawing up a budgeting plan for your rent, then, it’s time you learnt how to cook. If you already know how to cook, better for you. The goal here is to spend less on food outside the house. Eating out should be done only once in a while.
In summary, it is not enough to simply draw up a budget. The actual work lays in sticking with your plans and not getting distracted to the point of losing sight of your financial goals. This helps you cut down on impulsive spending. You should be disciplined enough to a point where you know precisely where your money is going because you can account for it.
