4 steps to answering "How much rent can I afford?"

Experts recommend that you spend no more than 25% to 30% of your monthly income on rent.

1. Look at your budget
Your budget should be about:
50% of your income - fixed costs, like rent, transportation, etc.
30% of your income on wants, like eating out, shopping, etc.
20% of your income on goals, like saving for the future and debts.

2. Make sure your expenses are realistic
Before you start cutting down on your budget to maximize the amount of rent you can afford, think about your lifestyle. If you have to give up a gym membership of a TV subscription decide if that’s something you can really live without, so you can make the most realistic decision on how much rent you can afford.

3. Calculate your moving expenses
Think through all of the additional costs you’ll have once you move. In addition to furnishing your new apartment, there will be other one-time expenses you’ll need to have cash to cover as well. Ideally, plan up and save for these expenses ahead of time.

4. Don’t include savings or credit accounts
You may be tempted to grab some cash from your savings, don’t. Once you start draining these funds to cover rent, you’ll be without a safety net in no time.
You should also avoid taking personal loans to cover your expenses, even your one-time moving expenses. Similarly, if you find yourself buying on credit in order to pay your rent on time, it’s a sign that you’ve overstretched your budget, and you should step back and relook at your budget breakdown.

Now that you know how much rent you can afford, you can visit http://www.gbale.com.ng to continue your search for an apartment in Ibadan or contact 07083575049.