Rent is probably one of the most expensive expenses and saving for it is another challenge facing most people who live in cities like Lagos.
A lot of people have issues with their landlords not because they don’t have the money to pay their house owners but because they don’t really plan to save for the rent on time.
So, if you’ve been having issues with paying rents, these useful tips, inspired by Smart Money Vlogger, Arese Ugwu, will guide you on how to save for rent and avoid landlord’s embarrassment.
1. Your rent should not exceed 30 percent of your total income
Before you rent that house, you have to consider your monthly income and make sure the rent is not way more than 30 percent of your income.
Living in a city like Lagos is expensive and when you are making rental decisions, you have to ensure your income is not stretched so much that you won’t be able to pay subsequent rents.
For instance, if your salary is N1.2m per annum, it means your rent should not be more than N360,000 per year. This makes it easier for you to keep paying the rent and avoid having problems with your landlord.
However, if your rent is a little above the prescribed 30 percent, then you’ve got to make sacrifices in making some financial decisions. You may decide to go for a car as expensive as your dream car to make up for your rental obligations.
