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How to Make Sure You Can Afford a Rent Payment

By Edited May 26, 2014 0 0

If you are looking to sign a rental agreement in the near future, then you are probably wondering if you can afford the rent payment. Whether you are getting your first place or perhaps you are moving into a bigger place, it is important to make sure all of the numbers add up before you take the leap. With job security being at an all time low and the economy still being very shaky, it is important to make sure that you are living within your means. This means that you have to make a budget and stick to it and this includes your rent payment. Before you sign that contract, lets make sure that you can afford the rent payment that you are about to have.
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Step One
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Determine what amount of rent payment that you believe that you can afford. You need to know a rough estimate of what you will be able to afford before you start looking for a new place to live. A way to do this is to take all your expenses for the month and put it against the money that you bring home. You will see what type of money that you will have to play with.
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Step Two
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Spend 3 months paying this rent payment to see if it really fits within your means before you sign a lease. The way that you do this is to take the total amount of the new rent out of your bank account every month, just like you would if you were paying it. Use the amount that you need to pay your current bill with to pay it and then put the rest away into a bank account that you can not touch.
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Step Three
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Analyze if you can live comfortably while making this size rent payment. You may need longer then 3 months to see if it financially reasonable for you to do this. If you feel that you can not afford the current level that you have set for yourself, you can do one of two things. You can look for a way to make more money each month. The other option is to lower the amount that you will be spending on your rent payment each month.
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Tips
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Other important things to think about when you are looking at a rent payment is what does it include. Every apartment will have different things that their prices include. Some lucky individuals will find places that will cover all utilities. However for the most part, rent payments will not include electric, phone, or cable. You will want to make sure that you take these added bills into account when you are creating your new budget.
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Remember that there are other expenses when it comes to living an apartment besides the rent payment. You may have to pay for parking. There is also the problem that you will need to furnish the apartment. All of this adds up. If you have followed the above plan to decide if you can afford this, then you can use the money you put away pretending to pay the rent payment to furnish the place.

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