It’s the age-old question that haunts you when you move to a new city – how much should you really be spending on your rent? Because unlike the house that you’ve grown up in where your parents took all the decisions, finding rental properties in Bangalore and settling down in one of them is going to require you to make a lot of financial decisions. We get it, it’s a tricky business. You have to factor in a lot of different variables – your income, how much time you spend at home, the kind of facilities you need, the location and so much more. At the same time, you’re in the city of Bangalore, one of the best places for young people in India to live. There are plenty of other young professionals and entrepreneurs like you who are in the same boat. So, to give you a helping hand with this basic problem, we’ve come up with an easy process to help you figure out how much you should really be spending on rent in Bangalore without breaking the bank or compromising on your quality of life. Check it out.
Set an upper limit
When it comes to finding a place to stay, you’ll be able to find a place in pretty much any budget under the sun. Which means that the higher price that you look at, the more rent you’ll have to pay. In order to ensure that you’re not getting swindled or building castles in the air, it’s important to set an upper limit on your accommodation search. A lot of finance professionals will recommend that you should set this limit to be around 30% of your monthly income. But considering that there are a lot of other routine expenses that you have to take care of beyond rent, we suggest that you come up with a figure that’s contextualized to your needs. The 30% rule can be a good place to start, and you can adjust this limit to include your utilities, food and other costs.
Have a general expense plan
Figuring out how much you should spend on rent is a challenge because you’ve got so many other competing needs that you want to spend on. This starts from essentials like electricity, gas, groceries and internet and goes up to the non-essentials like shopping, movies, and entertainment. To ensure that you’re able to survive and thrive beyond your monthly rent payment, it’s important to create a budget or expense plan for the month. This will allow you to streamline your finances and be better prepared to handle life in Bangalore. If you’re someone who doesn’t have a lot of non-essential expenses, you can probably afford to spend more on your rent and opt for a larger place. But if you love to splurge on treats, it might make sense to rent a smaller or more affordable place so that you don’t have to put a stopper on your fun.
Set something aside for emergencies
It’s one of the best known universal truths that you should always expect the unexpected. No matter how strong your budget and expense plan can be, life has a way of making even the best plans crumble. Which means that you need to have a backup plan ready, just in case. An emergency fund is one of the most essential things that you need to have in place before moving to Bangalore. Because you might have planned for the expense of Bangalore rooms for rent, but you also need to be ready with a security deposit, brokerage, parking charges, maintenance and so much more that will only become clear to you after you move in. Having an emergency fund along with your rent budget is also going to ensure that you feel financially comfortable while living in Bangalore and never need to worry about going way beyond your means.
So, there you have it. We hope that these tips make it a lot easier for you to plan how much you should be spending on rent in Bangalore and how you can financially plan for your big move. Good luck!