How to budget for an apartment

Everyone loves to have a beautiful apartment that is full of comfort. The prospect and idea of renting or acquiring your first apartment is both exciting and overwhelming at the same time. Exciting in the sense that you can’t wait to have your own house while overwhelming as a result of unpredictable financial expectations and costs. Setting up an apartment is never an easy task as some part of your income and budget needs to be allocated to it.  The 50-30-20 principle states that 30% of your annual income should be allocated to rent in order to have a good financial stability. Spending more than 30% might make you broke financially. The ability to estimate the total moving costs and create a budget for apartment properties will set you off on a good and strong financial stand for your first apartment.

To secure your first apartment, there is a need to keep proper record of your monthly spending to identify how your income is being spent and distributed across expenses. One of the best and easy way to save up for an apartment is to pretend and act as if you are paying for rent currently and allocation the funds or money to a separate savings account to restrict your spending and accessibility to such money. Doing this will make more adapted to a particular living cost thereby preventing you from future disappointment after moving to an apartment. As a first-time apartment renter, having a budget is very important to your apartment dream. Some of the things you will need to consider and take note of when budgeting for an apartment include:

1. The cost of moving

The cost of moving from an old apartment to a new apartment might be very high depending on whether it’s to take place within or across country and also within or outside the state. Moving out of the country will require the need for the service of professional mover to ensure safety and expertise in service delivery. The amount of money charged by those who helps to move are determined by the amount of labor hours it took to complete the movement. Also, there is a need to take note of the cost of furniture as you will needing them as a first time to give your apartment a great look.

2. The cost of rent

Always take into practice the 50/30/20 principle when budgeting on your income. Only 30% of your income should allocated to rent to have a good financial management. It’s a good start off point for any beginner with a single source of income. The cost of rents varies across cities, states, seasons and countries therefore you will need to make appropriate research on these costs before making payment to keep you within budgeted cost. It’s very important you pay your rent on time hence the importance of allocation just 30% to rent.

3. Electricity cost

Electricity is very vital and compulsory in any apartment and there may be need to pay the bills on monthly basis. The 50% allocated to fixed expenses in your budget will help to cover up such payment for utilities however there is a need to make sure your utilities are attached to your names before making payment to save you from unnecessary bill payments.

4. Gas and heating cost

While these costs are covered sometimes by the house owner or landlord, you may be the one to settle the bills at times. Ask questions concerning it about the costs from your landlord and inspect where you intend to move in before taking the decision.

5. Cable/Internet/Wi-fi/Streaming Services

It’s very importance to know the cost of these services because they are all under utilities and payment must be provided for it. Also, the identification of these costs will enable and make it possible for you to factor these costs into your budget.

6. Parking availability

While parking spaces are freely available in some apartment, some are paid for in other apartments as well especially in area where the cost of apartment are high. IT will be sad to find out your apartment doesn’t have a parking space after renting therefore the need to rent a parking space in a nearby garage become important. Always make sure you inspect your apartment first before payments and agreements are made.

7. Feeding expenses

As an independent person, you will need to feed yourself and be responsible for any cost that comes with it. Consider having homemade meals and if you can’t prepare them, get some food and groceries in restaurants that are not expensive and within your feeding budgets.

8. Loans and Credit cards

Consider the loans you have to pay when moving to a new apartment or as a first-time mover because loans such as student loans will consume a large part of your income once you are out of college. Also, ensure you pay off the minimum monthly payment if you are using a credit card to build your credit score and also save you from financial stress.

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  1. This is a great post. I am not in the process of buying an apartment but these will come in handy someday! The 50/30/20 split is brilliant.Thanks so much for sharing.

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