When it’s time for you to move and you are planning on renting, there are some money management concepts that you should keep in mind. Renting may be the easier option, for some people, but it isn’t always as cut and dry as it may seem. While when something major breaks down it may be your landlord’s problem to have it fixed, you also need to keep in mind that some problems will fall on your shoulders.
Some believe that buying a home is cheaper than renting, but not everyone has the luxury of buying unless they’ve followed these steps already. They both have their own benefits and their own negatives. With renting you need to make sure you can afford your monthly rent and other bills, and it is also wise to have renters insurance in case anything were to happen to your temporary home.
Build a Savings
No matter who you are and what you are doing with your life, whether you are renting a home or not, you need to build a savings. Savings accounts have many uses, not the least of which being a safety net in times of financial trouble.
Your savings can help you cover rent for a few months if you lose your job or it can help you move when you’ve outgrown your current living situation.
Plan a Budget
Another thing that is important for everyone, no matter what you are doing, is to have a budget. Planning a budget when you are a renter can help you ensure that your bills, and rent, are paid on time.
Budget everything you spend money on, from utilities to groceries and play money to car repairs. Also budget in that savings account so that you make sure you are regularly putting in a specific amount. Even the smallest expenses should be accounted for.
Don’t Be Frivolous
Frivolous spending, including the excessive use of credit cards, can be harmful to your credit. Not only can bad credit keep you from ever owning your own home, it can also keep you stuck in the same apartment forever. Bad credit is a bad thing and can hurt your future in many ways.
Get any negative credit under control as soon as possible. Don’t use credit cards if you don’t have the means of paying them off. Your credit history is important.
One thing to keep in mind, on top of these three tips, is that you may be put through a tenant screening process the next time you want to move to a new apartment. That is why it is important to have a handle on your finances and a clear outlook on your financial future. It can mean the difference between renting the same home for your whole life or having the option to move when it suits you.
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