I am always surprised when I see people not meeting up with their house rent despite having an in-flow of cash all through the year. They run hectare-scatter to raise funds or complete their rent. This baffles me a lot because house rent is not an emergency; it is an obligatory expense that should be planned for in advance. You had the whole of one year to plan for this but eventually ended up not being able to raise funds for the rent. So, why wait until the last minute? Let me share with a solution that will help.
Strategies
First of all, you need to put some factors into consideration. Do not rent a house in areas that are not within your reach. Ensure that two to three months of your revenue/salary can cover your annual house rent; this is a golden rule I always share. The next step to take is to break down the cost of your rent into manageable units: daily, weekly, and monthly. You have to know the cost of your rent per day, that will make you very conscious that you are living in a paid apartment.
Let us cite an example with Mr Obi as an example. He lives in a house where he pays 120,000 per year. Let us break down his rent into days, weeks and months of the year as follows in the illustration:
Illustration
Daily rents = 120,000 divided by 365 days of the year is approximately 330 per day. This means that Mr Obi pays 330 Naira per day. Weekly rents = 120,000 divided by 52 weeks of the year is 2,310. Monthly rent = 120,000 divided by 12 months of the year is 10,000. By understanding how much it costs you per day, week or month you now know what amount you need to save regularly, you can start setting aside funds systematically. It’s a simple yet effective strategy to avoid financial stress.
Read also, how to pay house rent without stress. At AjoApp Cooperative, we not only guide to save but teach you how to manage your finances.
At AjoApp Cooperative, we understand the importance of planning for the future. That’s why we offer an Annual Rental Plan designed to help you save for your house rent effortlessly. This plan has your savings locked for 12 months and it comes with a 3% interest bonus as a reward for your discipline.
The Implications
The inability to pay for your house rent can cause financial stress which can take a toll on your mental and physical health. This also has a social impact on tenants as it usually causes disputes with landlords. All these could be prevented by adopting a simple saving plan that works. First, set a goal/budget and second save for it. As the saying goes, “A stitch in time saves nine.” By planning ahead, you can avoid unnecessary stress and enjoy peace of mind.
Here at AjoApp, our commitment is to help you achieve financial freedom. We provide the tools, guidance, and support you need to stay on track. Don’t wait until it’s too late—join us today and take control of your financial future!
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