What are some facts that you don’t even need to think twice about? The sun rises in the east, there are seven days in a week, living in a big city away from home can be extremely expensive. Because life in the big cities of India, whether it’s Mumbai, Delhi or Bangalore, can take a lot out of your wallet. You have to contend with sky-high rents for tiny apartments, premium prices for food and entertainment, and not to mention the pesky monthly living expenses (groceries, electricity, WiFi, Netflix) you have to keep track of. And negotiating with your landlord while also studying or working is a slow and painful process. But does that mean you skip the move to your dream city? Surely not. After all, your ambitions deserve the perfect setting to take flight. And you’re in good company for the journey. Because, being the IT capital of India means that millions of young entrepreneurs share your struggle every year in Bangalore. Sure, there are ways to survive in the city on a budget, but we don’t just want survival for you. We want you to thrive. So we’re here to tell you how much you should really be shelling out on rent so that you can live your best life.
Set a limit on how much you’re willing to spend
We know, we know. Your mother probably told you to save your salary and live at home instead of moving to Bangalore. But you want your own space. And that’s fine. Just don’t blow ALLl of your salary away on that space. Most articles and financial experts recommend the “30% rule,” which obviously means you could spend about 30% of your monthly income on rent. But lots of people disregard this calculation because it’s outdated and doesn’t factor in expenses that are relevant today (like credit card bills or EPF plans). That’s why we recommend setting your own personal fixed percentage to spend on rent, rather than blindly following the 30% rule. Create a realistic budget based on the different factors like your take-home pay, lifestyle, and monthly payments.
Plan for your other expenses
Yup, rent’s not the only thing you’re shelling out for your apartment in the city. You’ve also got to spend on utilities like gas, electricity and water, transportation, grocery, internet… should we go on? Not to mention the non-essential (but let’s be real, still quite essential) expenses on entertainment, dining out and shopping. And it’s only after all of that’s spent and sorted that you can start thinking of saving. So plan your monthly expenses ahead and redistribute your budget for rent and utilities. If you rarely splurge on shopping or movies, then you could allocate more of your salary towards rent for a better quality accommodation. But if you value the good life, perhaps you should give up the flat for a ladies’ hostel or a PG for gents in Bangalore. The goal is to find a balance that is the best fit for your financial situation.
Expect the unexpected
We’re sorry to break it to you but even the best plans end up not working sometimes. That’s because life is often unpredictable, and the only way to plan for that unpredictability is by having enough backups. And when it comes to money, that means budgeting for any potential or emergency expenses that may come up during or after your move. So think about the overlooked questions. If you’re taking your car with you to Bangalore, have you planned for the extra parking costs. Or if you’re planning to take advantage of public transport everyday, you’ll have to think about which mode is most cost-effective. And then there’s your flat itself. Does your landlord want a huge deposit or do you have brokerage that you need to factor into your expenses? That’s definitely going to add up. And if the pandemic taught us anything, it’s that it’s probably a good idea to have an emergency fund of about 3-6 months’ worth of cash reserve. Future you will definitely be grateful.
Are you feeling apprehensive about managing all this by yourself? Well, don’t be. Millennials like you are flocking to urban centers like Bangalore, despite expensive housing and budgeting constraints. And yes, sometimes that can involve making adjustments and sacrifices. Like choosing a place that’s walking distance of your job to save on travel costs. Or skipping a few parties and expensive dinners with friends in favour of microwave meals. Or perhaps you’ll ditch the apartment route and choose a hostel or PG. Well, we’ve got another suggestion for you. Why don’t you spare yourself the headache and move into a managed-accommodation space like Stanza Living instead of making sacrifices to your lifestyle? Their fully furnished coliving spaces are vibrant and beautiful and include the best of amenities like delicious meals, high speed Wi-fi, regular housekeeping, common-use equipment and an exciting community program at the most affordable rates. Now you can easily redefine and revolutionise the way you live in Bangalore, at a very reasonable price.