Renters Tips: Making a Budget

Money can be one of the biggest sources of stress in our lives. Having a budget to help you navigate each month's spending is an excellent way to minimize worries. 

Budgeting often gets put off because it's not an exciting thing to do. However, once you have a budget in place, you'll find you can reduce your stress, gain peace of mind, and afford some fun purchases along the way.

If you've never created a budget before, don't be discouraged. Compten Management has some simple tips to get you started.

Calculate your true income by adding up what you make in a standard month and adding in any monthly tax credits or other government benefits you receive. If your pay cheque fluctuates, use the lowest amount for your budget.

Make a list of fixed expenses including rent, insurance, utilities, food, transportation costs, all loan or credit card payments, and membership fees for fitness centres or subscription services like Netflix, Sirius, and Spotify.

Determine how much money remains after your fixed payments so you can allot money for monthly discretionary spending. Include your entertainment, savings, investments, and miscellaneous spending for clothing, gifts, and toiletries.

Review your unknown spending on your banking app to get an accurate account of all expenses and necessary purchases. If you're new to renting, track all your spending for a couple of months so you can see how you're spending your money.

Make your budget accessible and easy to follow by printing it and pinning it to the fridge. You can also download a budgeting app for your phone, or find an online budget planner.

Stick to your budget for successful money management. Your budget will reduce your financial stress by helping you eliminate missed payments and save for the future.

As a renter, mindless spending can affect paying rent on time. Defaulting on a loan is serious and can damage your credit score. Always communicate with your landlord when you might have an issue paying rent on time. They can help you determine the best course of action to avoid defaulting on your lease. 

Looking for a more affordable apartment? View our suites in Toronto and Mississauga.