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 smarter budgeting, cutting costs, and setting yourself up for financial success in your first apartment.
Congrats! Moving into your first apartment means you get to embrace independence, responsibility, and personalization. At the same, it can also be a bit overwhelming too. That’s especially true if you've been getting amped scrolling through social, looking for the perfect place that'll fit 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 getting your first apartment. Here are some savvy tips to help you prepare.
When you find an apartment that catches your eye, it can be really tempting to overspend your budget to get it. Before you sign on the dotted line, it’s a good idea to run the numbers and follow the 30% rule so you can keep rent affordable and within your budget. This rule of thumb suggests spending no more than 30% of your monthly income on rent.
Depending on your other financial obligations such as a car payment, student loans, credit cards, and savings, your rent budget may vary. It’s important to balance rent with your other expenses to ensure you can comfortably afford (and enjoy) your first apartment.
Don't Forget Move-in Costs! Additional costs to consider aside from rent are the security deposit, first and last month’s rent, and application fees. These quickly add up, so it's crucial to know what to expect up front.
In addition to paying rent each month, your first apartment comes along with these common expenses, so it's important to plan accordingly.
Utilities: Monthly utilities typically include water, electricity and internet but can also include more if you're opting in for your favorite streaming services too.
Transportation: Be sure to include transportation costs – things like gas, auto insurance, public transit, parking fees, etc., into your monthly expenses. Remember, you can’t pay your rent if you can’t get to work!
Food: Be mindful of food costs. Eating at home versus ordering DoorDash can help save a lot of money. If you have a roommate, consider sharing grocery expenses to help save even more!
Renter’s Insurance: This protects you in the event of fire, burglary, fraud, water damage, etc. Some apartment complexes allow you to use a third party that they provide, or you can get your own through your auto insurance carrier. You may even save money by bundling your renters and auto – savvy money move!
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.
The first step to setting yourself up for success with your first apartment is building a realistic budget. Before signing a lease, try our home budgeting calculator and practical tips for tracking expenses to create a budget you can live with. In fact, you might even consider budgeting with roommates to split utilities, food, or other shared items fairly.
Helpful Tip: Not sure how to get started? Check out Adulting 101: How to create your first budget – from industry experts at Balance. If you're a Peach State member, you'll also have FREE access to other financial education and resources.
Move during the off-season for less expensive rent options and deals. Consider getting a place outside big cities and popular areas. Often times rent is cheaper in less congested areas.
Save up a few months of living expenses before the big move to help you stay ahead of the game. Also, start hunting out deals on furniture, dishes, and other household items. You may even come across great finds at thrift stores and yard sales.
Pay down debts before moving (try the snowball method which focuses on the smallest debts first) to free up more cash for apartment needs.
Rent only the space you actually need, like a studio vs. a 2-bedroom apartment, to help save. Consider getting a roommate to help reduce costs without sacrificing your independence.
Compare apartment amenities like a pool, gym, and parking to see if the extras are worth the higher rent before committing to a lease. If you don't plan to use the amenities, paying more may not be worth it.
Getting your own apartment is a big milestone – smart money moves and financial preparation make it possible (and way less stressful). Planning a budget you can stick to and getting an affordable apartment will be a positive experience and allow you to thrive in your new space.
Check out these resources for other ways to save in your new apartment:
Contact us today to see how we can help you master budgeting!