How To Prepare To Face The Rental Blues
You thought only home buyers have to sit and do a detailed planning of their finances; as a renter you are a free spirit. However, you may end up in trouble you are taking things too lightly as a tenant. You, too, will have to observe certain financial restraints to ensure cash flow does not hit you hard in times to come.
The right per cent
In any circumstances, you should not spend more than 30 per cent of your monthly in-hand salary in paying rent. You have many other monthly expenses to take care of. No matter how much you like to live in a premium locality, you must shun the thoughts of renting a place here if you have to spend a large part of your income on this. There are other things to take care of.
The necessities: This would include regular spend on grocery, medical needs, transportation, food, bills, equated monthly installments, etc.
The luxuries: This would include eating out, leisure activities, vacation, gym membership, fashion shopping, among others.
The savings: This would include the money you have to pay every month towards your savings account, fixed deposits and insurance cover.
Cut down on excess expenses
During the initial month of your moving in, a lot of money will be spent on rent, security deposit, packing and moving, and even decorating the property. You have to be ready to spend an extra amount to do so. This would mean you have to cut down on your other expenses for the time being.
Want to rent in a particular locality or housing society, but it doesn't fit your budget? You could find roommates to share the rent burden. This option will also bring down the cost of various other things.