It’s not always easy to calculate your finances properly, especially when there’s undoubtedly costs that you hadn’t considered that come creeping in and BAM, you’re having to dive into your savings. That’s the worst feeling. But with our quick guide, you should be able to avoid that and become more secure in your knowledge of the financial backing you need to be able to achieve what it is you want to achieve. For this blog post, we’ll assume you’re a first time renter and we’ll outline the financial commitments you may not know about and others that you probably already should!
- Rent – The biggest dent in your monthly income usually, you should generally only spend about 40% of your monthly income on rent because you’ll need the rest to survive and pay other bills that no one wants to pay.
- Energy – Gas, Electric & Water. Shop around here, but definitely keep these in mind. In some instances, they won’t be a lot, especially if you have a studio apartment or one bed property. But still, it adds to the total outgoings! Turn off the lights and don’t leave the heating on when it’s not needed.
- TV license – Whether you pay it off in one go or choose the monthly route, a TV license for the most part is mandatory these days. Even if you’re watching on your mobile phone! Don’t get caught without one otherwise you might be penalised.
- Insurance – You’ll likely want to consider insurance just in case you are unfortunate enough to come across any issues down the line. This can protect those savings you’re working on!
- Grocery shopping – We all need to eat and you may be surprised how much this can amount to if you’re only now thinking of taking that leap of faith to becoming a renter of property!. Try to keep track of your spending. There’s a lot of apps out there you can use to help you with this or you can set up a simple excel spreadsheet.
- Internet – In this day and age, it’s virtually impossible to live day-by-day and not access the internet. Typically this will set you back around £40 (sometimes with packages included). Make sure you consider this essential!
So there you have it! A few inevitable bills you’ll have to consider. We’ve left out travel expenses and the likes because those are often person specific! Do you have anything to add to our list? Let us know