Congratulations! You’re ready to find your own place! But before you start browsing apartment listings, it’s crucial to create a budget. In this post, we’ll discuss how to budget for an apartment and provide tips on how to save money on housing costs.
How much should you spend on an apartment?
Experts generally recommend spending no more than 30% of your income on housing. For example, if you earn $3,000 per month, your rent should not exceed $900. Keep in mind that this is just a guideline, and your specific situation may require a different approach.
How to budget for your apartment:
- Calculate your total income: Add up all the money you make each month from your job, side hustles, or any other sources of income.
- List your expenses: Make a list of all your monthly expenses, including rent, utilities, groceries, transportation, entertainment, and any other bills you pay regularly.
- Determine your priorities: Decide which expenses are essential and which are non-essential. Essential expenses include things like rent, utilities, and food, while non-essential expenses might include things like dining out or buying new clothes.
- Allocate your income: Once you’ve listed all your expenses and determined your priorities, allocate your income accordingly. Make sure you have enough money left over each month to cover unexpected expenses or emergencies.
- Use budgeting tools: Apps like Brigit can be incredibly helpful when it comes to budgeting for your apartment. Use the app’s budgeting tools to track your expenses, check for bill due dates, and monitor your overall financial health.
- Re-evaluate your budget regularly: Your income and expenses may fluctuate from month to month, so it’s important to re-evaluate your budget regularly. Make adjustments as necessary to ensure you’re staying on track with your financial goals.
Tips to save money on housing:
- Find a roommate: Sharing an apartment can significantly reduce your housing costs. Plus, you’ll have someone to split utility bills with!
- Consider a cheaper location: Living further away from the city center may mean cheaper rent prices. Just make sure to factor in transportation costs.
- Negotiate your rent: It never hurts to ask if your landlord is willing to lower your rent. You may be surprised at the results!
- Look for move-in specials: Many apartment complexes offer move-in specials, such as waived application fees or a month of free rent.
- Avoid unnecessary fees: Be sure to read your lease agreement carefully and avoid unnecessary fees, such as pet fees or parking fees.
Budgeting for an apartment can seem overwhelming, but it doesn’t have to be. By using Brigit’s budgeting tools and following our tips to save money on housing, you’ll be well on your way to finding your dream apartment at a price you can afford.