Finance Advice for First Time Renters

Moving out of home and renting a property for the first time is an exciting experience and huge personal milestone to accomplish, but at the time it is a daunting experience. There’s inspections and things like electricity and internet to think about.

Here are some tips for people who are renting for the first time and wanting to keep on top of their finances.

Workout Your Household Income

Whether you are living alone off one income, combining pay cheques with your partner or splitting expenses with a housemate, the first thing you will want to do is work out your household income.

Your household income may include your pay cheque from work, investments and government allowances, such as youth allowance. Once you have worked out your monthly income, you can start planning your budget and deducting the necessary expenses.

Have A Savings Plan and Develop a Strict Budget

The secret to saving is to start early and save often. It is vital to create a savings plan so you can manage your money and stick to your goal.

Have a clear picture of your regular expenses and spending habits. This helps you see where you can cut back and save.

Once you know how you are spending your money, you can set a realistic budget. Your budget will help you to stay on track, review your progress and reach your money goals sooner.

Furthermore, it is a good idea to develop a savings goal to help you stay focused. It doesn't matter how big or small your goal is, work out how much money you need to save and start working towards achieving your goals.

Be Aware of Where the Money You Are Spending Is Going To

From your household income, set aside money for the necessities you will need to pay each month, including your rent of course. Although different for everyone, necessary expenses can include:
•    Insurance (home, health and car)
•    Utilities (water, gas and/or electricity)
•    Phone and internet connection
•    Car loan repayments
•    Public transport
•    Prescriptions
•    Groceries

Write a list of the essentials you need to keep yourself and your household going the basic necessities you can easily expect to pay each month.

In most cases, you will spend around 50 percent of your income on these expenses. However, aim to spend no more than this percentage to ensure you have money left over for savings and unexpected costs that might crop up during the month. This could mean shopping around for the best deals on insurance or being savvy with your grocery list to keep expenses low.

Track Your Savings Progress with A Budgeting App

There is a large number of different apps available to help you stay on track with your saving and spending goals. Some of the most common include; Mvelopes which is an app that allows you to allocate set amounts to regular expenses. Pocketmoney, is another app which syncs with your bank accounts, loans and credit cards,

If adopting a digital approach to money management works for you, these apps can play a huge rule in enabling you to grow your savings.

On the other end of the financial spectrum, there are plenty of apps that encourage people to spend more. From buy-now-pay-later apps to food delivery services, the common thread is that they make it harder for a person to stay faithful to a budget.

It is super important to skip the app trap by deleting spending apps from your phone or at least until you have started to achieve off some savings goals.

Finance Advice for First Time Renters