Keeping to budget can be a difficult thing due to emotions that gets in the way. I find it very important to discuss How To The Budget For Your House Rent, because it relates to each and every one of us especially those who are on rent for now.
Budget is one of the most important part of life that needs to be planed, checked and controlled. Resources are always scarce. It’s the work of the budget to make sure that any available resource is well utilized. Or else, it tends to control the life of an individual since the duty to setup a budget rest on the shoulders of these individuals, You and I.
The keys to knowing how to budget for your house rent have been classified into the following
#1. Know What You Need
Are you precise about what you exactly need? Do you really know what you need from what you want? When it comes to How To Budget For Your House Rent, the first key is to know exactly what you want; the available space you can rent; the price you can go for with the income you earn; terms and condition with other little things.
I recommend that you should know what you want and stand for it. Write it down and take your time to review your decisions so as to be clear and firm about it.
#2. Map out a budget
After you’ve had a clear knowledge of how much you earn a year and how much rent cost in the area you want then it is time to write it down on paper. Create a budget that will possibly be the model of your expenditure monthly. That helps because being in debt can cause you a lot of pressure, distractions from your business or job and in some cases people crack under pressure. It is wise to save yourself the headache and emotional unrest by planning a budget; not only to plan but to make sure that you adhere to it.
These steps will help you map out a budget: take out a sheet of paper and write
- Know and write the renting price of your accommodation you need. Make sure your write it down on the sheet of paper.
- Write down your daily needs for feeding, transportation and other living expense with their corresponding cost and be sincere with yourself. To improve this section, look out to eliminate expenses that you can live well without. Check yourself and your spending habit, make a resolution to stop some bad spending habit so as to increase your reserve. If this is done well, more money will be available to channel into other meaningful agenda.
- Also allocate some percentage of your income to charity or church or mosque. This sections is important that you do it even if your income is as little as not enough, just do it. It will turn out to develop in you a sense of responsibility towards good cause.
- Allocate some fund for your savings. This is yet another important aspect of your budget. Saving can help you make expenditures that are important that you will normally be unable to make due to emergency or a likely situation.
- The remaining funds could be set as a backup funds for your weekly needs. But make sure that it is under control and hold your appetite for spending in check, for if it goes off; the result will not look good.
#3. Follow the Rules
After you are done with #1, and #2 then it will be time to set the red line, green zone and yellow arena in your budget. Always keep watch of your expenditure
Create a different bank account for your house rent and faithfully pay in the funds appropriate to this account once you get your monthly income. If you are a small business owner, you can also do the same. If you do this always you will save yourself from unnecessary shortage of money to keep to your responsibilities as a tenant. Landlords love good tenants. And one day you could be one. You will love it too if your tenants pay you always on time.
The following are simple rules you can keep to help you stay in the right direction
- Create your green zone: Set a limit for your spending and once that limit is reached stop. It could help if you move out of what will make you spend. Always remember that if you don’t make the deal today, tomorrow is another day and it is always better than yesterday.
- You can also create a Yellow arena. In other words I will call it Plan B. This is a reserve budget set aside if you have to unavoidable make some expenses. You are still safe. But watch out and don’t let it run dry quickly.
- Know when you step into or about to step in the Red Zone. that is actually when you’ve exhausted your green zone, and now the same thing is happening to your Yellow Arena (your reserve account)- its account is about to be exhausted. Restrain with every effort you can make.
One Last thing
To finish it all, try to discipline yourself. It will help in the achievement of these steps and ultimately help you live in peace with your Landlord and neighbours.
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