How to Budget and Save for an Apartment

If you’re renting for the first time, it’s important to create a budget to help you save the necessary funds before you move. That way you can live within your means and enjoy your independence.

Determine How Much Rent You Can Afford

As you start searching for your dream apartment, you need to assess your finances to know how much you can spend on rent.

Begin by reviewing your monthly income, which you can find on paychecks, pay stubs and tax returns. Income should only include funds from steady sources.

A good rule of thumb is to only use 30% of your monthly earnings to pay for rent. For example, if you bring home $2,500 per month, you should look for apartments that cost $750 or less.

Create a Comprehensive Apartment Budget

Determine monthly expenses: Aside from rent, you’ll need to account for expenses, such as groceries, insurance, loans, transportation and car payments. Those numbers can influence how much you can afford in rent.

Track your spending: Review your monthly bank and credit card statements to identify spending habits. Dining out, shopping and subscriptions can add up, so allocating an allowance for those expenses can help you manage your money.

Set a goal: Determine how long it will take to save up a few months’ worth of rent and utility payments by creating a timeline and setting measurable goals. Subtract your current monthly expenses from your net monthly income and set aside a portion of the remaining funds in a savings account.

Choose a budgeting system: The 50/30/20 rule is an effective budgeting method. Use 50% of your income for necessities, 30% for wants and 20% for savings. You can also try money-saving challenges or use budgeting apps to help you save.

Save for Initial Moving Costs

Some property managers may require a few months’ rent before you take possession of the unit.

There are potential one-time expenses to account for when renting your first apartment, including:

  • Application fees
  • Security deposit (usually the value of one month’s rent)
  • Renters insurance
  • Pet fees

The moving process can also rack up costs if you need to:

  • Buy packing supplies
  • Hire movers
  • Rent a moving truck
  • Pay for gasoline

Cut Unnecessary Expenses to Boost Savings

It’s important to take a hard look at your finances to determine where you can make cuts to help you save for your apartment.

Here are some easy ways to reduce spending and increase savings:

  • Cancel gym memberships. Most modern apartment communities have free onsite fitness centers.
  • Cut down on dining and takeout.
  • Take advantage of perks, discounts and coupons while grocery shopping.
  • Ask family and friends to help you transition into your new place to reduce moving expenses.
  • Review your streaming services and eliminate unused subscriptions.
  • Source furniture from secondhand stores, garage sales and loved ones.
  • Shop holiday sales if you want to purchase new items and décor.

Build an Emergency Fund for Unexpected Costs

The unexpected can be costly. That’s why it’s important to include emergency expenses in your budget. Depending on your financial situation, you may wish to keep your emergency fund separate from your savings to avoid the temptation to use it otherwise. Consider setting aside several months’ worth of living expenses to cover incidents like car repairs, job loss, medical bills and personal emergencies.

Budget-Friendly Apartments in Columbus, Ohio

Ardent Communities offers single- and multi-bedroom apartments and townhouses at various price points to suit your lifestyle and budget. Check out our locations and contact us to schedule a tour.

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