How to Budget for Your First Apartment

29 April 2021
 Categories: Real Estate, Blog


Budgeting for your first apartment for rent can be challenging, especially if you are new to managing cash. Perhaps, you are a graduate fresh from college, or you recently landed your first job, or you're moving into your friend's apartment. Whatever your circumstances, you need to create a reasonable budget. Budgeting helps you to get an affordable apartment that you can comfortably pay for each month. Additionally, a budget helps you to spend wisely and save more.

If you are considering renting two-bedroom apartments, you need to think more carefully about your finances. Here is how to budget for your first apartment.

Calculate the Moving Expenses

You need to budget for your move while considering the transport costs and logistics. If you are moving far away, maybe in another state, or have too much stuff to move, you will probably pay professional movers to facilitate the move. What's more, factor in expenses for buying new furnishings and house utensils if you have none. With all these costs in mind, you can determine how much you need to move into your apartment.

Consider the Rent

Paying rent for your two-bedroom apartments will take up a considerable part of your earnings, so you need to plan well. Remember that you have to pay your rent on time, failure to which your landlord may fine you. Besides, no property owner wants to deal with a tenant who can't honor a leasing contract. Hence, set a rent amount that you can afford by applying the 50-30-20 budgeting rule.

The rule dictates that 50% of your earnings should go to your needs, including rent, utilities, school fees, payment, and other essential bills. 30% of your income should go to your secondary needs such as entertainment. You should use the remaining 20% or better your financial security. For instance, you can save cash or invest part of the money on retirement insurance.

Consider the Utilities

Some landlords register utilities under the tenant's name. If that's the case, you may be required to pay a deposit if you're paying for the utilities for the first time. You should follow up with your service provider to determine how much the deposit costs and the refund terms. Additionally, you should keep your consumption in check to reduce your utility bills.

Considering the rent, utilities, and moving expenses can help you create a reasonable budget to help you move into your next two-bedroom apartment. You should utilize these tips to avoid financial stress.