If you are renting a home, the money you set aside for rent is usually the biggest item on your budget. Budgeting can be a challenge because apart from the monthly rent, you’ve got other bills to pay such as utilities, food and transport.
Fortunately, there are many ways to save if you’re willing to practice discipline and change your habits. Here are some helpful tips to budget money for rent:
- List all your expenditures (outgoings)
Tracking your expenses can be helpful in order to identify certain spending patterns and triggers. Write down all your expenses, such as food, clothing, rent, telephone/mobile phone and internet charges, petrol, transport, council tax, water bills, subscriptions, credit card or loan repayments, and other items (i.e. gifts, books, etc.).
After listing your expenses, determine how much remains when you take away your expenses from your income. If there’s no excess, look at the amount you spend in each area and work out where you can cut down.
- Distinguish between wants and needs
Before making a purchase, especially a major one, ask yourself if the item you are buying is a ‘need’ or ‘want’. Being conscious of your spendings is a great way to budget and save money for rent. A ‘need’ is something that is extremely necessary for a person to survive. On the other hand, a ‘want’ is something that an individual desires, either immediately or in the future.
- Reduce monthly bill expenses
Find ways to reduce your monthly bill expenses. For instance, you can inquire about bundling options for your TV, internet and mobile phone service. This will save you a lot of money. You can also check the competitors for a better deal.
To save on utilities it helps to make small changes such as turning off the lights when leaving the room, investing in energy efficient lighting and not leaving the water running while you brush your teeth.
Prior to signing or renewing the lease with your landlord, try negotiating your rent. A landlord may grant your request if you are willing to sign a longer lease. And if you happen to have a good relationship with your landlord, there is a greater chance that he/she will be more receptive to your request and review your rental price.
- Purchase insurance
It is important for a renter to have insurance. It will protect you from a variety of potential major financial losses for a low cost, such as against a theft, fire or vandalism. It can also cover a tenant’s liability in case a visitor is injured on the premises, depending on the type of policy you buy. For more on insurance for renters, read our blog A Simple Guide to Renters Insurance.
KeyRing Lettings aim to provide tenants with a high-quality residential property, aimed at the housing needs of families, professionals and anyone currently homeless or threatened with homelessness.
We are able to advise our tenants on all matters relating to property rental, as well as assisting with the housing benefits process within Mendip District Council. We have experienced and professional staff who always aim to exceed customer expectations in order to provide the best service possible.
If you are looking for a new home and don’t know where to start, contact us today.