What expenses do you need to budget for if you choose to rent a home? Check all that apply.

A budget is an estimate of income and expenses written during a specific period in time. When renting a house, the following expenses should be included in your budget, namely;

1. Rent

This is the most obvious expense. Rent can be defined as a periodic payment to a landlord or house owner for the use of his/her property. In our case, the rent is for using a house. Since rent is paid monthly, your budget has to include a monthly expense equal to the rent amount.

2. Utilities

Utilities can be defined as necessary services that are usually provided by organizations. In the context of renting a home, utilities include services like; electricity, water, gas and trash collection. The utilities always have a cost attached to them, therefor one needs to budget for utility expenses.

The above are some of the expenses that are supposed to be including when budgeting for renting a house. A budget is very important in planning for any emergencies that might occur in the future. A strictly followed budget usually results to avoidance of cost overruns. When one sticks to a budget, they tend to avoid over spending beyond their means. When one's expenditure exceeds the income, they tend to borrow which leads to debt. When one defaults on their debt, it leads to a poor credit score.