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.
1 Comments
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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