Renters’ Budgeting Tips To Always Keep In Mind

Friday, November 13th, 2020
Budget tips for home renters

It is always wise to budget your expenses so you can stay financially healthy and save for the future. This is true whether you are moving into a new rent home or are already renting and just want to better your budget. No matter your unique situation, you can use these tips to help you budget successfully.

Separate your budget based on your needs

A common (and easy) way to budget is to separate your expenses based on necessities, wants, and savings. You may find different percentages out there like the 50/30/20 rule. But, specific methods like this one don’t work for everyone. The general idea of separating your expenses like this is good, though.

Necessities

You can’t stop paying for necessities, but you can change the way you spend your money. Rent, utilities, groceries, pet expenses, and car insurance all count as necessities. Depending upon your location, your expenses will vary. Also, if you have debt, that is a necessity that will affect your budgeting. Keep these tips in mind to figure out what you need to budget for necessities.

  1. Many people can dedicate 50% of their budget to necessities. However, if you can’t, you may need to consider cutting down on wants or looking for deals.
  2. If you are in debt, the necessities portion of your budget can easily go over what you can afford. The best way to avoid this is to minimize your debts. For example, don’t open a credit card at a retail store.
  3. If you are looking for a rent house, keep your other necessities in mind. You don’t want to spend too much in one area and not have enough in another.

Wants

This is the portion of your budget that has the most wiggle room. There are a lot of items and services that you need to include. Eating out, furniture, streaming services, shopping sprees, coffees, new books, and anything you don’t need is a want.

Give this section of your budget less money than the necessities. Also, if you need money for something like food, eliminate something from this category. It is vital to have enough money to care for yourself and take care of your responsibilities.

When looking for a rent house, the category of want will be important. You may want three bedrooms and a large kitchen. But, if that does not fit in your reasonable budget, you will need to consider something different.

Savings

Even if you don’t think you can save money for the future, you can! Some will tell you to save a specific amount of money each month or certain percentage of your income. But, you need to be sure that you can afford whatever you plan to set aside. A good rule of thumb is to have at least three to six months worth of expenses saved.

General budgeting tips for renters

Knowing how much you need to budget is important, but you need to know how the process works before you can start. Here are some fundamentals to remember.

Create a monthly budget

To start your budgeting, you need to create a plan. A good place to start is with your monthly expenses. Be sure to track EVERY expense for an entire month. This includes everything from a fancy coffee to rent to a new car. Create categories like home, vehicle, utilities, entertainment, and food. Once you know how much you normally spend, you can decide how much you SHOULD be spending. It may seem difficult, but once you see how much you spend on things you want, you will be able to find ways to move your money around.

Leave room for changes

Even though you base your budget off of your normal spending, you need to leave room for changing needs. Your bills may suddenly change due to a fee increase or you may need to buy birthday presents. You might also decide to go on a vacation. These are expenses that can sneak up on you. To prevent surprise spending, include a category in your budget for random occasions.

Make budgeting a habit

If you are new to using a budget, you may slip out of it easily. This is why you need to make the process a habit. Track every purchase you make each day, including any that break the budget. You can also set a time to regularly review your budget to make sure you are sticking to it. Tip: An app can help you stay on track and organize things more easily.

Budgeting tips for first-time renters

If you are renting for the first time, you will likely need to budget differently. This is especially true if you are just moving out on your own. Be sure to ask people you trust for help when budgeting and choosing your first rent house or apartment. You can use these tips to help you as well.

  • Set money aside for moving expenses. This includes boxes, tape, packing material, and movers.
  • Rent will likely be your highest expense. This means you will need to make it a top priority.
  • Make a plan for your utilities. If the place you are moving to doesn’t cover these, you will need to set them up and get them started. Some companies require a fee upfront, so be prepared for this. The same is true for cable and internet companies.
  • Ask your bank for help with budgeting. Renting a house is exciting, but it can also be daunting. If there is a representative at your bank that can help you, ask them for some tips.

Rent houses in Amarillo, Texas

Budgeting as a renter doesn’t have to be difficult. The key is to find the right method for your needs so you can find the right rent house! At Highland Park Village in Amarillo, Texas, we have a variety of rent houses Available. We are more than just a neighborhood: we are a community! You can reach us at (806) 335-1451 to learn more.