Are You Financially Ready to live on Rent?

You haven’t really relocated for your job but it’s time to move out from your parents’ home and start living on your own --- at least, that’s what you think. Finding a new home for yourself isn’t solely about living out of your parents’ shadow and performing chores on your own but it’s also about figuring out whether you are financially prepared to take the leap of faith or not. Read on to figure out why your decision to live on rent can never be made arbitrarily.

Are you willing to move out and live on rent? Have you judged feasibility?

As per a recent Census data around 24 million millennials are actually living with their parents. It has been assumed that the reason behind this trend is the fact that most of millennials are earning less than what their parents used to do at the same age.

Judging affordability is one of the first steps that you must take when you are actually in the process of moving. Can you afford to move at the first place? What is the total amount of rent which you can afford? Ideally you should not be paying more than 30% of your gross salary towards house rent.

Your Rental Checklist isn’t only about your “Rent”

Make sure your grocery bills and transport costs are part of your “rental listings”. If you are paying a car loan or for that matter other credit card bills then you should be prudently including them in your listing as well.

In order to figure out whether you can afford to move out or not you need to zero in on the rental listings in the areas where you are actually interested in taking a rent.

Your expenses can always exceed your earning and this is one of the fears potent enough to hold you back as far as giving shape to your dream of moving out is concerned. Instead of psyching out right at the onset you should take a calculator and start budgeting.

What does your present budget “say”?

Start off by taking a look at your present budget. Is there anything which you can actually do away with? Were you sponsoring house help when you were living with your parents? Can you do without a house help now? Are you considering moving  somewhere close to your workplace so as to cut down the transport costs? Make sure that you are considering avenues of savings at all costs.

Do not rely on credit cards to bail yourself out of shortfall. Make sure you are not making “rent” an excuse for not saving up considerably.

Renters Insurance

Do consider rentersinsurance in order to determine whether at all you will be able to move or not. Some landlords might as well require you to purchase this insurance policy as part of the lease agreement. Do not go on to dismiss renters’ insurance arbitrarily because it will cover damages and theft. If you end up causing the damage to the property yourself you will be protected as well.

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