Happy New Year! Welcome to the amazing year of 2022. If you have been paying attention to our recent blog posts, we trust that you are financially ready to take on the long journey that is the month of January. Just so we’re sure you don’t miss out, check out our tips on not going broke in the month of January.
If you are planning out your year and making resolutions for 2022, we have something for you too. We’re here for everybody this year. Take a look at this article on what to include in your new year resolutions.
It is common to want to make big changes in your life at the beginning of the year. If one of your new year resolutions is to rent your first apartment or change apartments, congratulations! This article is specially for you, and for everyone else who plans to get their own apartment at some point.
As exciting as the prospect of a new environment can be, renting is not a decision you should take lightly. You must prepare yourself emotionally, mentally and of course financially. You don’t want to end up facing financial constraints or in deep regret as an aftermath of paying rent.
Here are 4 financial tips to help you prepare to rent your own apartment:
1. Know how much money you can afford to spend on rent: This is perhaps the most important part of getting yourself ready to pay rent. Know how much your monthly or yearly income is and how much of that money you’d be comfortable spending on accommodation. One popular rule is that spending 30% of your income on rent is acceptable, but there are peculiar situations where this rule doesn’t apply. In some locations, the 30% rule can work, and in others, it may not. It also depends largely on the size of your income. Devote time to figuring out what works for you and your current income.
2. Create a savings plan: Getting an apartment is such a big responsibility and when it comes to securing accommodation, decisions shouldn’t be made on a whim. Like every other big purchase or expense, it is a very wise thing to save in advance. Create a savings plan as early as possible. The amazing thing about saving is, it’s never a bad idea. Get on Crowdyvest and create a plan for your rent.
3. Consider other living expenses and plan for them: Many people make the mistake of making plans for only rent money while forgoing other essentials. If charges like electricity bills and water bills aren’t included in your rent, you need to make provision for yourself. This means that as you create your savings plan for your rent, also make plans to pay other bills.
4. Research the area: Your home should be your castle; a place where you are comfortable and relaxed. A bad location can jeopardize all that for you. When getting a new apartment, ask questions about the location. Talk to people who live there about their experiences with security, electricity, water and even transportation. How close is it to your place of work? Are the roads in good condition? How is the area when it rains? These are some questions that need honest answers before you make payment. If you pay good money for a great house in a location that makes you feel unsafe or uncomfortable, it would not be wrong to say you have not gotten value for your money.
Getting your own place is quite the milestone. Whether you’re getting it alone or with your friends or family, moving into a new place can be thrilling. At the same time, it can scare you and leave you feeling uncertain.
You must battle this feeling of uncertainty by being prepared for the responsibility. Consider all your options and come to the conclusion that you are indeed financially and mentally ready before making any move, especially the moves that involve you spending money. If you’re adequately prepared, it should be smooth sailing.
Happy New Year once again from all of us at Crowdyvest and happy house hunting!
Samson Oloto
