Moving out and into your first place is one of the most exciting times of your life! You finally have your own space to do whatever you want, how you want, with no one to tell you no. To keep the moving process as fluid and fun as possible, make sure you have the funds to afford the fun of living on your own. Below are a few excellent tips to keep your finances straight and move into your first apartment.
Set Focused, Attainable Goals
If you want to save money, you need to decide on a feasible amount and set realistic goals for yourself. You must add up the entirety of your living expenses and calculate how much you are able to pay in rent each month. As a common rule, your rent to income ratio should never exceed more than one-third of your monthly income. As an example, if you make three thousand dollars every month, you should not be paying more than one thousand dollars per month in rent. Knowing what you can afford to pay in rent each month will help you decide which apartment communities to tour and what apartment units to pass up. It will also help you get a baseline for your savings. Keep in mind, when moving into a new apartment the landlord will expect a security deposit (equal to one month’s rent) and sometimes an additional month of rent upfront. This means that you will be expected to pay two to three times the amount of one month’s rent when you first move in. No matter how much money have saved, you should never move into an apartment where rent surpasses the one-third rent to income ratio: You will be destined to run into finance issues if the rent takes too much of your income. Know how much you need to save, set reasonable goals, and stay focused on your path to savings.
Lower and Eliminate Living Expenses
The best way to save money is to spend less money. This will require you to keep track of everything you purchase and find areas where you can pinch pennies. No one likes to make sacrifices, but know you get one step closer to achieving your financial goal with each one. Subscriptions will rob your money without you knowing it. If you have streaming services for movies, tv shows, or music, you most likely pay a monthly subscription. Living without media sounds awful but living in your parents’ basement beyond your thirties is worse. Canceling a few subscriptions will save you a decent amount of cheddar each month. Quit buying all your food out and start grocery shopping regularly with a list. Do what you have to do to lower your expenses, even if it means ramen noodles every night. Cutting corners where you can save money is painful in the moment, but when you are standing on the balcony of your awesome new apartment, the pain you experienced will be well worth it.
Save more money than just first month’s rent and security deposit. It is good to save two to three times what you think you might need in the event of emergencies or other unexpected expenses that arise when moving. It is critical you have enough money saved to live off of so you can begin saving again once you move into your new apartment. Strive to save twenty percent of your income; if you make three thousand dollars each month, you should shoot to save six hundred dollars per month.
When looking for an apartment, you cannot always get what you want. Decide what your apartment has to have and figure out aspects of an apartment that you would be willing to compromise. Whether you are furnishing, buying appliances, or even weighing the amenities that two complexes have to offer, knowing what you need in an apartment to make you content will make hunting for an apartment easier.
Do Not Lie to Yourself
When seeking and hunting for an apartment, you have to be honest with yourself. The goals that you set for yourself have to attainable as well as you got to be able to keep to it, especially once it starts to get hard. It is important not to down yourself when you are not able to get the apartment you want; apartments get listed and rented every day. The apartment you seek might not be available today, but it could be tomorrow or the day after. Whatever you do, take the process slow and do not rush yourself into a bad apartment simply for the sake of moving out. As long as you have your finances saved up for success, your apartment hunting process should be a breeze.