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How Much House Can I Afford For Renting in California?


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Before renting an apartment, the renter will have to consider all of his current expenses compared to the monthly cash flow. Another issue that a renter has to resolve is whether they can make certain changes to reduce their budget in order to afford or take a more well suited apartment.

1. Expenses

Expenses play a big role in determining the kind of apartment a renter can afford in California. If you are thinking of renting up an apartment, carefully consider all your monthly expenses in relation to your income. Common expenses that most people incur include electricity, gas, water, telephone cable tv, car insurance, groceries, gas for car, internet services, renter's insurance among other charges. After adding up the total of the monthly expenses and subtracting from the income, the remaining balance will give a good indication of the amount the renter can afford to spend on rent each month. Its also a good idea for renters to subtract an additional amount of money out of their income to allow them the opportunity to save some money.

Other expenses to factor in include entertainment expenses such as eating out in restaurants, going out to watch movies or cultural events plus movie rentals. These expenses should not be ignored and need to be considered as a necessity because the renter might not allocate a portion of their budget for such purposes and might sadly find themselves unable to participate in some enjoyable leisure activities.

Is There Room for Improvement?

Renters also need to think and see if there are opportunities out there for them to improve their current financial situation even as they examine their monthly budget. One way of doing this is to reduce the monthly expenses by acquiring their car insurance and renter's insurance from the same insurance company. The company might be willing to work with the renter by offering a discount for those that utilize their services for more than one type of insurance. Another way of minimising or reducing expenses is by combining services such as Internet, telephone and even cable television.

California offers many entertainment options and if you are not disciplined enough, you can find yourself incurring huge entertainment expenses. One way of improving or reducing entertainment expenses is to reduce the number of times one eats out on a monthly basis. You can consider limiting these dining experiences to once a week or even only one night every other week. This might not look much but can result in significant cost savings which will enable you as a renter to afford a more costly apartment in California.

Cell phone and cable television bills is another area that you as a renters can cut expenses on. You need to look at your cell phone bill carefully. Should you find that you are not maximizing on all your minutes each month, it might be a good idea to switch to a plan that offers fewer minutes. What this does is lower your monthly bill without making you take additional sacrifices. One area in particular where personal sacrifice will result in reducing expenses significantly is cable television. If you are one of those renters that pays higher fees for prime channels, you can consider dong away with them. These small changes on monthly spending can make a large contribution in reducing expenses and make you afford a more expensive apartment.

Is There a Need for Improvement?

Although doing away with minor expenses is a good way to manage your finances, as a renter you need to determine if its really necessary in light of your rental situation before deciding to make drastic changes. Once you have determined how much money you can spend on rent, you then start looking for apartments that are available within your price range. If you are happy with the choices that are available to you at the time, then you don't need to make huge financial changes at this time. On the other hand, if you find that you are not happy with the available options, strict financial changes need to be applied here.

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