Budgeting for your First Apartment
For many, moving out and getting your first apartment is a rite of passage. It’s a sign of independence and responsibility. But, while it’s an exciting milestone, without the proper planning and budgeting, it can also be overwhelming and messy.
So, while you may have found your dream apartment, there are still a couple of things to consider before signing
- How much do I need to have saved?
- What move-in costs are there?
- What are some ongoing expenses?
- How much can I afford with my income?
How much do I need to have saved?
Depending on which part of the country you live in, renting an apartment may be more or less than what you expect. Even so, having some money to fall back on is always a good idea. Mint states that having enough to cover three-to-six months of living expenses is a good rule of thumb. And while many might not have the means to save that much in a certain timeframe, any money saved up is better than none.
If moving out is in your short-term plans, try setting aside any loose change or putting money aside each paycheck. Over time, that money will add up and help alleviate any financial hardships that come with getting your place.
What move-in costs are there?
When budgeting for your first apartment, be sure to consider any upfront costs too. Upfront costs may include a security deposit, first and last month’s rent, pet deposits, move-in fees, and utility deposits.
Additionally, the act of physically moving into your new apartment can be costly too. If you have to hire a moving company, it will very likely be more expensive than having a friend with a truck help out. Be sure to consider all costs that come with moving your things from one place to the other.
What are some ongoing expenses to consider?
In addition to your rent, having your own apartment means paying other monthly expenses like utilities, electricity, heat, air conditioning, gas, cable, and internet services.
Renters insurance is also something to very strongly consider. This will help keep you covered in a variety of circumstances you may find yourself in as a tenant. Amigo Insurance offers low monthly rates on renters insurance to help keep you covered without breaking the bank. Call us at 877-999-2644 or 773-847-9000 for a free quote.
How much can I afford with my income?
Now that you’ve factored in your savings, upfront costs, and other monthly expenses, you can see what you can afford with your income. Forbes stated that as a standard rule, you should try to find an apartment that is no more than one-third of your income.
If the apartments you’ve seen so far are too high, consider finding new locations or places without unnecessary amenities.
Overall, moving out for the first time can be both exciting as it is scary. For many, this is the first time away from home and doing personal finances on their own. However, while it may be scary at first, it is certainly not impossible. Especially with the right planning.