Your rent is probably one of your most expensive expenses, especially if you live in cities like Lagos. Most people find it challenging to save for it, you see people with good jobs having issues with their landlord not because they don’t have the money to pay their house owners but because they don’t plan to save for the rent on time.
So you want to rent an apartment or a house in Lagos or anywhere at all, first of all, you need to know the kind of house you want and what you can afford. Have a plan, make a budget. Budgeting will help you spend smart.
Remember that paying rent isn’t the ultimate goal so your first rent should be the beginning of your financial plan.
To make it easy for you to save for the payment of your rent, this article will touch on some budgeting tips you should take into consideration.
1. Consider your Monthly Income
This is the first and most important thing you should consider even before you rent an apartment. The cost of living in a city like Lagos is high compared to some other states and so before you decide to rent an apartment, you should ensure your income is not stretched in a way that you won’t be able to pay subsequent rents.
The rule is to make sure your rent is not more than 30% of your monthly earnings. This allows you to meet other financial demands crucial to other aspects of your life and have something to fall back on in the case of emergencies.
Basically, you should be able to feed, transport yourself to work, and save up for other bills in general even after paying your rent. Saving 30% of your salary for a year should be able to renew your rent and if that isn’t the case then your plans are not realistic enough.
However, In a situation where your rent is above 30 percent of your monthly salary what you need to do is to cut down on some expenses for the main time, you may decide to move the purchase of that car until you get a salary increase.
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2. Set Up a Monthly Budget
Don’t just draw up a monthly budget, make a conscious effort to stick with it. You should be able to account for what you’re spending your money on.
With your monthly budget set, you will be able to start saving early for your rent. Ensure you set a percentage of your income aside on a monthly basis, that way its easier to pay your rent.
One mistake people make is they start saving 3months to the time their rent is due. This is not such a good plan because other expenses may come up within that short period. It is better to save on a monthly basis so you don’t have to start writing to your landlord to give you more time when your rent is due.
Your monthly budget should be based on what works for you, consider the 50/20/30 rule, with this model, you should spend 50% of your salary on your living essentials, save 20% and 30% on whatever you like.
When looking for an apartment to rent, consider apartments that fit into the 50/20/30 monthly budget rule or set up any other budget plan that works for you.
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3. Don’t put all your savings in one account
Putting all your savings in one account is the same as putting all your eggs in one basket, apart from the fact that your bank may sometimes misbehave, it is not safe.
You may find it difficult to be specific with your saving goals when you save your money in one account. Although a lot of people do it, it’s not advisable. The problem with this is you might end up not achieving any of these saving goals, it will mean you taking from one account to solve all problems.
So, to make the payment of your rent easier, have a different account for your rent and ensure you pay some money into it every month and if possible restrict your access to this account so as to realize your saving and financial goals.
4. Adjust Your Spending Habit
This is one tip you should prioritize to make your rent payment easier, you should be able to make financial adjustments where necessary.
Denying yourself of certain things is not fun but it comes with loads of benefits. The secret behind cutting down on your spending is separating the things you need from the things you want.
For instance, you may decide to go for a car less expensive than your dream car or you can cut down on the number of parties you attend where you are forced to buy expensive fabrics to be able to meet your rental budget.
The goal is to find better ways to save more of your salary. Budgeting for your rent requires some level of discipline and sacrifices.
There will always be things to spend your money on, but it’s up to you, make up your mind to focus on the things that really matter, clearly define your goal, it is easier to work towards them when you do.
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