How To Keep Your Monthly Rent Outgo Low
Experts are unanimous in their opinion that one should not be spending more than 30 per cent of ones in-hand salary as rent. But, all we renters know it is quite hard to maintain that kind of ratio. Most of us end up spending as much as 40 per cent of our take-home salaries in paying rent every month. Considering there are several other expenses to be taken care of, a heavy rent outgo can seriously test your financial planning skills. If one is not careful, it would be hard to run your household in your monthly salary.
Now, what could you do to make sure you rent remains low while you also do not compromise on the quality of life?
All set or not?
It goes without saying that a fully-furnished house will cost you much more than a semi-furnished or non-furnished unit. Let us chose the unfurnished units for renting to save on our monthly outgo then. But, who will spend all the money in buying furniture and other things needed to set up a house. Remind yourself that is it is entirely your decision when you buy your household items or what kind of money you spend in doing that. You can put on hold your purchasing plans and adjust till the time your income increases. But, if you opt for a fully-furnished place, it would mean spending a fair amount of money regularly. Weigh your options before making a final decision and see which option is more beneficial for you.
Time is money
In our attempt to save time and money, we want to take a rented accommodation close to our workplace. This does make sense, especially if you live in India's metropolitan cities where traffic jams are common. But, it may cost you more to live close to your workplace. If you chose another locality which is comparatively cheaper, would you be able to save better? The answer might be negative. Despite the fact that you would pay less as rent, your travelling costs might rise. Not to mention the fact that your travel time would also increase which might be harmful for your productivity. If you spend an hour battling traffic jams to reach office, your energy levels would most certainly drop. Only after a detailed analysis of the situation, oft for a far-off locality.
Sharing is caring
It might not be an option for you if you live with your family, but single people can opt to share their accommodation to bring down the cost of renting. And, this will help you in more ways than you could imagine. While shared maintenance costs would result in better savings, there would also be someone close by to take care of things, if need be. But, what about privacy? You could opt for a bigger unit and create your personal zones. This way you would be able to enjoy privacy as well as companionship. However, it is advisable to share your accommodation with people you know well.