How much rent should I pay?
It can be challenging to decide how much you can spend on monthly rent or estimate its cost if you’re a first-time tenant. Considering that, here are some ways to make this decision easier
If you want to decide how much to spend on rent, you have first to know your income. Knowing this makes it easier for you to think about your monthly rent.
The easiest way to begin is to pick a fixed percentage of your income. This means that a certain amount of your income will be spent on rent.
But if you’re a student who has taken out student loans, take the loans into account before you start spending.
It’s also highly recommended that you look up the average rental value for the properties around the area you want to rent before starting to budget.
For instance, you want to give up 30% of your income to rent, and your earnings are RM3000. Therefore, you can spend RM900 on rent. So now you know that you have RM900 to pay, but an area you’re considering is more expensive than you thought. Maybe it’s more convenient or accessible, but you’re unsure what you can do.
Here are some ideas on what you can do.
- get a roommate
- consider the utility costs
- save on other aspects of your life
- look for convinient property with accessible public transport
1. Get a roommate
Finding someone to room with you helps immensely. Maybe you can get a few housemates. Bonus: new friends who might become your best friends!
This is because, if you do this, you can split the rent, at the very least, in half. So you can consider a better and more expensive property. Or at least a more spacious one.
For instance, a 2-bedroom property would be cheaper than a 1-bedroom property. At this point would be more worth it as you split the rent.
2. Consider the utility costs.
Don’t forget to take these into consideration as well:
- water bills
- electricity bills
- gas bills
- cable bills
And so on. If you’re lucky, they might be included in the rent so make sure you check!
3. Save on other aspects of your life.
For instance, don’t get cable TV or spend your money eating out, instead save by eating at home. Also, avoid splurging or excessive spending on unimportant things, e.g., traveling, well, that is until you earn enough money. Saving up allows more room for rent money. Therefore, it widens your options for much cozier places to stay.
4. Look for convinient property with accessible public transport
A place with accessible public tranport rids your need of a personal car, and therefore, do not need fuel. Fuel is usually one of the most significant expenses and vehicle maintenance or service fees, so public transportation would help significantly cut down costs and save money.
Lastly, always check what expenses you can expect during the month. Then you won’t have surprises. It’s never too late to understand better your finances and where you stand financially. This will help you make better decisions in the future.
Wanna know more about monthly expenses? Get to know what you have to pay for when renting a house here.