Easy bud­get tips for renters

Broome Advertiser - - Broome Property - Rachel Pre­ston-Bid­well

Stand­ing on your own two feet, rent­ing for the first time and pay­ing your own way can be a daunt­ing prospect.

But if you can bud­get and keep track of your fi­nances, the sense of ac­com­plish­ment and free­dom is worth the ef­fort.

It might take a lit­tle time to fig­ure out what works for you when cre­at­ing and stick­ing to your bud­get but there’s a ba­sic for­mula to fol­low.

Here are three easy bud­get­ing tips to get you started.

1. Work out your house­hold in­come

Whether you’re 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.

2. The nec­es­sary ex­penses

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.

Typ­i­cally, you will spend about 50 per cent 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.

Speak with a fi­nan­cial ad­viser to work out the best way to pay for these ex­penses, such as set­ting up an au­to­matic trans­fer to en­sure you’re cov­ered and never miss a pay­ment.

3. Spend­ing money

With your monthly in­come and nec­es­sary ex­penses worked out, you now have pocket money left over to en­joy the finer things in life. But don’t for­get about your sav­ings.

Be sure to set aside some money for a rainy day to cover your­self for un­ex­pected ex­penses, such as a car break­down or ac­ci­den­tal dam­age to your rental prop­erty.

You may also wish to squir­rel away some cash for a hol­i­day or even your very own house down the track. What­ever your goal may be, if you need some help sav­ing, speak to your bank about set­ting up a sep­a­rate ac­count which can­not be with­drawn from on­line or via an ATM.

Car­toon: Don Lind­say

Jug­gling rental ex­penses can be daunt­ing at first.

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