Unpacking the Costs of Your First Apartment: What TikTok Didn’t Tell You
Blog Highlights
- Rent: Learn how much of your income should go toward rent and why following the 30% rule helps you stay financially balanced.
- Expenses: Discover the hidden costs of apartment living: from utilities and move-in fees to groceries, insurance, and fun money.
- Savings: Get practical tips for budgeting smarter, cutting costs, and setting yourself up for financial success in your first apartment.
Moving into your first apartment is an exciting milestone in your life, but it can be a bit overwhelming, too! That’s especially true if you have been spending time on social media looking for the perfect place to call home that will also work within your budget. Watching apartment videos on TikTok can be fun, however, it often just shows the aesthetic side of apartment living, not the true costs. A smart money move is to be aware of the actual expenses that come along with your first apartment. Here are some helpful tips for budgeting smartly.
How Much Should You Spend on Rent?
While it is tempting to spend more when you see an apartment that catches your eye, it’s a good idea is to use the 30% Rule. This means that you should not spend more than 30% of your income on monthly rent, because this helps keep your rent and utilities in line with your income.
The amount you spend on rent can vary, though, depending on factors such as income, and other financial priorities like savings, debt, expenses, and, of course, the housing market in your area. It is important to balance rent with your other financial obligations to ensure you can afford to pay for your first apartment.
Other Bills to Budget For Each Month
In addition to your monthly rent expense, your first apartment comes along with these common costs, so it is important to plan accordingly.
- Utilities: Monthly utilities typically include water, electricity, internet, and trash service. There can be more, including streaming services and cell phones, so it is important to know the cost of each of these services for budget planning.
- Move-in Costs: Moving into your first apartment costs a lot more than just paying your rent. Some things to consider that typically come along with securing a rental are a security deposit, first and last month’s rent, and application fees. These costs quickly add up, so it is crucial to know what to expect up front.
- Transportation: Don’t forget to include transportation costs when planning your monthly bills and budget. This includes gas, auto insurance, public transit, parking fees, etc. because you can’t pay your rent if you can’t get to work!
- Food: Groceries and food delivery are a big part of your monthly budget. Eating at home versus paying extra money for food delivery can help save money, but either way, be sure to include food expense in your budget under necessities.
- Renter’s Insurance: It’s a smart money move to buy a small renter’s insurance policy to cover your belongings. They are relatively inexpensive and can protect you in the event of fire, burglary, fraud, water damage, etc.
- Entertainment: Moving into your first apartment is supposed to be fun, so don’t forget to include some “fun” money for going out when you make your monthly budget. Don’t go overboard and be sure you can meet your monthly financial obligations, but definitely set aside some funds for fun.
While these extra monthly expenses might not seem like a big deal, they can add up…and quickly, so factoring them into your budget is key in your first apartment.
Budgeting for Real Life
To set yourself up for success, it is important to create a realistic budget before signing a lease on your first apartment to ensure you can afford it. In fact, you might even consider budgeting with roommates to split utilities, food, or shared items fairly.
Tips for Cutting Apartment Costs
Every little bit helps when it comes to cutting costs for your first apartment. Here are some ways to save.
5 Ways to Save on Your First Apartment
- Move during the off-season for cheaper rent options and deals.
- Save up a few months of living expenses before the move to help you stay ahead of the game.
- Pay down debts before the big move to free up monthly income for apartment expenses.
- Rent only the space you actually need, like a studio vs. a 2-bedroom apartment to save.
- Compare apartment amenities like a pool, gym, and parking to see if the extras are worth the higher rent before committing to a lease.
Affording Your First Apartment is Easy with Tips from Members Plus
While apartment living is a big milestone, smart money moves and financial preparation make it way less stressful. Planning a budget you can stick to and getting an apartment with an affordable rent will lead to a joyful experience and allow you to thrive in your new space. Contact the team at Members Plus today to see how we can help you with our budgeting apps and support resources.
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