Is Your Rent Too High? 😱🏠
Hellooooo!
How’ve you all been? I hope you had a good week so far or at least take my blessing for a phenomenal weekend to call it even! Before we get to it, I’m sorry for being nosy, but tell me this:
What I was up to: This week’s been busy again since I’ve been hustling around quite a bit. IDK if y’all missed hearing from Niyati on our mailers but I sure do, and I am glad she will be back to work tomorrow, YAYY!
Also, we went live with a brand new episode of our podcast where I had a memorable chat with Arjun Vaidya, Founder of a D2C Startup has expanded his domain as an investor, podcast host, and content creator. His brand, Dr. Vaidya has made over ₹100 Crores from Ayurveda and I got a chance to talk to him about D2C Business, the Indian Startups Story, Investment, and Financial Literacy. Check it out here:
Market ka haal: The Indian stock market experienced strong buying interest on Thursday, May 23, leading the benchmarks, the Sensex and the Nifty 50, to their fresh record high levels. 📈 The market witnessed across-the-board buying as the BSE Midcap and Smallcap indices also hit their fresh record highs during the session. 🏆
This positive comeback was speculated to happen post-elections as political stability was restored. However, since this is potentially short-lived before results are announced, there could be quite a bit of profit-booking that leads to a correction. But treat this as a sign to steer clear of the temptation to book profits if you're in it for the long run!
European, Asian, and US markets have been in tandem with the Indian stock market, enjoying a mostly bullish run this week as the US Federal Reserve went easy on rate hikes.🌍📈
So, overall, it’s been a rather pleasant week!🚀
Also, we now have our very own WhatsApp channel to serve freshly cooked finance content directly to your DMs and get you to be amazing at managing your money 💰 Click here to join!
Humara Gyaan: Renting a home is a big financial decision, and it's important to figure out how much you can afford without stretching your budget too thin. Let's break it down in a simple way using the 50:30:20 budgeting rule
📝 The 50:30:20 Rule: Your Budgeting Blueprint
One widely recommended method for managing your finances is the 50:30:20 rule. This rule suggests allocating your income into three categories:
50% for Needs: Rent, EMIs, groceries, and other essentials.
30% for Wants: Entertainment, dining out, and other fun stuff.
20% for Savings and Investments: For your future security and growth.
So, if you take home ₹60,000 a month, aim to spend no more than ₹30,000 (50%) on needs, including rent. Here’s what you can do to keep your rental budget in check:
🙅🏻 Cut Back on Wants: If your rent is pushing your budget over 50%, the first area to cut back on is your wants. Adjust your lifestyle and reduce spending on non-essentials/wants, but keep your savings and investments intact at any cost As Warren Buffet says, "Do not save what is left after spending, but spend what is left after saving."
🤓 Explore Options: Look for housing options that fit within your budget, such as moving to a less expensive area, downsizing, or co-living spaces.
🫣 Assess Rent Hikes: It's common for rent to increase by 5-10% annually. If your income isn't growing at the same (or at a better) rate, it may be time to rethink your rental situation.
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Keeping your rent within a manageable limit is key to financial stability. A home could have a lot of different meanigns to each of us and there’s no doubt about how important it is to invest in a decent place to live but renting is a huge decision and probably, the biggest expense for a salaried person - so it’s worth putting a significant amount of thought into.💰
To sound financial decisions and a fab weekend! 🍻
Sayali❤️
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