How much rent can I afford?
When most people are ready to take the big step of moving into another place, they have to do a lot of research, find out what they can afford. So how do you take the first step on your renting journey? Make a list of everything you spend money on each month. Based on your income after taxes, you can decide if your current spending is aligned with your saving goals. “Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do,” (My Money Coach, 2020).
Why is budgeting so important? It’s all about making a plan to make sure that you have money for the things you do need. Following this plan helps you stay out of debt and for those in debt, it may help them get out of it. Budgeting is about balancing your income with your expenses. Your monthly budget can give you a range of how much you can spend on rent. Making a list and using it to help you find out what’s best and be sure, to be honest with what you make, what you owe, expenses, and what you can afford.
What can be helpful to create a budget and keep things on track? With the invention of technology, there are many applications that help create a budget based on your account and tracks your expenses. “Personal-finance programs or websites like Quicken and Mint.com offer built-in budgeting tools that can create your budget for you. Every time you make a deposit, write a check, pay a credit card bill or dispatch an electronic payment, you can assign it to a particular category, like “salary,” “clothing,” “groceries,” “childcare” or “health insurance.” Some programs will allow you to download your payments and deposits directly from the bank, rather than having to enter them by hand,” (CNN). I have used many apps such as Quicken that are on the go and are helpful, but there are many other online websites such as Zumper that help you calculate your rent. Zumper is great because it’s online and easy to use! You just visit the website and input your information and it starts to give you the data you need to make the decision.
How much of your income should go to your rent? Zumper suggests “We suggest spending around 30% of your income on your rent and other housing expenses. For example, if you make $50,000 per year, you should plan to spend about $15,000 annually on rent, or $1,250 a month. If you’re having trouble finding places to rent within your budget, consider getting roommates or looking in less expensive neighborhoods to meet your needs”. Zumper makes learning about how much you can rent easily with other tips and tricks to help make the experience even easier! Who couldn’t want more?!
I love Zumper as a company puts themselves out there to make it a pleasant experience to something that can be deeply frustrating for many. So, when you’re looking for financial advice, look no further than Zumper!