Moving into your first apartment is an exciting experience! You now have your own space to do as you please.
To make the moving process smooth and enjoyable, ensure you have enough funds to cover the costs of living independently. Here are some tips to help you manage your finances and move into your first apartment.
Set Realistic Goals
Set realistic goals and determine a feasible budget. Add up all your living expenses and determine how much you can afford to pay each month.
Your rent should not exceed more than one-third of your monthly income. For example, if you earn $3000 monthly, you should not pay more than $1000 monthly rent.
Don’t forget the security deposit (equal to one month’s rent). Sometimes, landlords will ask for the last month’s rent upfront.
You should have enough money saved to pay 2-3 times one month’s rent. If rent is $1000, you should consider having $2000-$3000 designated for the first month’s rent, security deposit, and possibly last month’s rent (depending on the landlord).
Save More Than Just First Month’s Rent
The first month’s rent, the security deposit, and the last month’s rent are only the tip of the iceberg. Hopefully, these three expenses and moving costs are the only things you must finance.
However, you must be prepared for the unexpected. Accidents happen, unforeseen expenditures arise, and you must have the money to cover them.
Having more than enough money saved for these expenses will put you in good financial shape for the move and let you continue saving once settled in your new apartment. A good goal is to save 20% of your income; if you make $3000 a month, aim to save $600 per month.
Be Frugal
The best way to save money is by spending less. You might have to tell your friends, “”No, I can’t go out tonight. I need to save money for my apartment.”” Your true friends will respect your hustle.
Closely monitor your spending habits and reduce spending where you can. Every cent saved is a step closer to your goal!
Subscriptions waste a lot of money, so consider canceling streaming services for movies/TV shows, music, magazines, or newspapers. Life without Spotify premium and Netflix might sound impossible, but you can always pick up a book or go outside! Perhaps spin one of those records collecting dust on your shelf and write a letter to your family or friends!
Eating out is expensive; it’s much wiser to grocery shop with a list to avoid buying things you don’t need. The best thing to do is reduce your spending and avoid situations where you have to spend large amounts of money, like eating at a fancy restaurant or gambling at a casino.
Be Prepared to Negotiate
You may not be able to afford your dream apartment right now, and that’s okay! Most people’s first apartment isn’t their dream apartment. In fact, most people’s first few apartments aren’t their dream apartments.
It takes several apartments to learn what you truly want and need. Think about what you genuinely need out of an apartment, and that will give you a proper apartment search perspective.
You might not have the rooftop penthouse suite, but if your next apartment is an improvement from your current one (whether that be more space, a newer building, a better location, etc.), you’re moving in the right direction!
Be Patient With Your Goals
Be patient with yourself and your goals when apartment hunting. Set feasible goals and stick to them, even if it gets difficult.
Don’t be too hard on yourself if you don’t get the apartment you want. Remember, new apartments become available every day. Don’t rush into a less-than-adequate apartment just because you didn’t find a suitable apartment today.
Take your time and keep saving. With your finances in order, apartment hunting will be much easier.
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