Luxury is a funny thing. When you think of a luxury apartment do you picture something that costs $2,000 dollars a month or $10,000 dollar a month? In some cities, a $2,000 apartment will get you a three-floor walk-up studio. That doesn’t sound very luxurious. Even so, the real question is how to afford a luxury apartment regardless of what you consider luxurious. Here are a few tips to help you.
How Much Should You Spend Each Month
The truth is experts say only 30 percent of your monthly income should go towards your rent.
So for example, if you make $4,000 per month, your rent should be no more than $1,200 dollars a month.
In fact, some landlords will want to ensure that your rent won’t be more than 30 percent of your income before they will approve your application.
Keep this in mind when you go look at luxury apartments.
For argument’s sake, let’s say that a luxury apartment is an apartment that costs $5,000 or more per month. It should have lots of wonderful amenities including parking, a gym, a rooftop lounge, and more.
To be able to rent that $5,000 per month apartment you would need to show an income of $16,666 dollars per month or $200,000 dollars per year.
If you’re wondering how big a rent payment you can afford, check out this free rent calculator here.
The big question is what you can do, so you too can afford a luxury apartment.
The 5 Best Ways to Afford a Luxury Apartment
There are probably many ways you can get the money to live in a really nice place, even so, not all of them are practical. Here are the top 5 ways that will get you into that apartment sooner rather than later.
1.Get A High Paying Job
Okay, let’s get this one out of the way. Most of us don’t have jobs that will pay us $200,000 dollars a year or more, but if you are just starting out and you want to live a luxury lifestyle, you’ve got the time to plan ahead.
If you plan your future correctly by going to college, so you can get a high-paying job, then the problem will solve itself.
Think of jobs in the medical field, a partner at a law firm, or a data management engineer.
For the rest of us that didn’t plan ahead but still want to live the champagne and caviar lifestyle, we aren’t completely out of luck. There are still ways we can make the money we need.
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2. Start Your Own Business
One of the best ways to be able to afford an expensive apartment is to start your own business.
A successful small or medium-sized business can bring in a really good income once it is off the ground.
Consider some sort of manufacturing or plumbing, electrical, or contracting. These can all be big money makers and you don’t have to spend 12 years in college to get into the profession.
Retail or a restaurant is a little too risky and the profit margins are really low, so it is tough to make the big bucks.
Think about what people need instead of what they want, and chances are you can find a business to start that will skyrocket your finances.
3. Develop a Passive Income
One of my favorite ways to make money that will allow me to buy what I want or live in that super nice apartment is passive income.
Now, the term passive income is a little disingenuous. You do have to put in a ton of work in on the front end for some types of passive income, but on the back end, there is little to no work and you can still have the money rolling in.
There are a couple of ways you can create wealth with passive income.
Buy Stocks and Bonds
You might be thinking that you have to have a lot of money to buy stocks and bonds. Sure, it helps, but in reality, you can start with just a little cash or even a little change.
Apps like Acorn will get you investing with just a few dollars.
If you want to create wealth, so you can get that apartment sooner, then you should consider playing the stock market.
You will need to do some reading before you start and get a good understanding of how it works otherwise you could lose all of your money.
There have been many…many millionaires and billionaires made in the stock market.
This Investing QuickStart Guide is a great place to start.
Start Your Own Blog
This is one of the best, and easiest ways to make passive income. It’s what I do with the very blog you are reading now.
Yes, it is a ton of work up front, but once you get going, you will find that your website will grow and grow and grow.
Making the $5,000 dollars a month you need for that luxury apartment is certainly doable. Many people make that and much…much more every month.
If you don’t know how to start a blog, check out this article. It will give you all of the steps you need to get going.
The truth is, a blog, once it is built and traffic is coming in, is truly passive income down the line. Yes, you might need to tweak things here and there a bit, but for the most part, you can just sit back and relax and enjoy watching the money pour in.
4. Get a Side Gig Not a Second Job
You’re living your life. You have a job and responsibilities, but your income is just not where it needs to be to allow you to afford an expensive apartment.
Don’t give up hope and don’t get a second job to make extra money. No one needs a second boss and a second schedule. That’s no way to live.
Instead, get a side gig.
I’ve found that having several sources of income makes your life a lot less stressful for many reasons. It is also a great way to bring in extra cash on your own time and own way.
That extra cash could easily be enough so you could rent a luxury apartment.
Just take some time and think about what you enjoy. Chances are there are ways you can make money from it.
Personally, I always enjoyed selling stuff on eBay, but I don’t like having to go out and find items to sell, worry about shipping, and all the rest.
So, I sell vintage postcards. I can find them online or at a postcard show, and I know exactly what they ship for. I have one little mailer that I use and I never have to worry about finding a box or lugging a bunch of stuff to the post office.
You’d be amazed at how much you can make. I make around $1,500 a month just from postcards. If I really wanted to spend a lot of time at it, I could get it up to $3,000 or even $5,000 a month. I’m just too busy with other things and creating passive income.
The point is, there are tons of ways to make a little or a lot of money in your spare time doing something you enjoy. I like postcards, so I sell them.
What do you like?
5. Reduce Your Other Expenses
Finally, if you want to make an expensive apartment a priority and you’re on a tight budget, then you’re going to have to give up something.
The second-biggest monthly expense after rent is transportation.
If you live in a large midsize to a large city, ditch the car and start walking, taking the bus, or subway.
Sure, it isn’t a lot of fun not having a car, but it is a good way to save up to $1,000 a month. That gets you part way to that nice apartment.
Also, pay close attention to how you spend your money. Are you buying things without thinking about it? Do you spend money every day on lunch or coffee? Do you shop for clothing or tech gadgets all the time?
You’ll need to cut this out. It could add up to more than you realize. Start tracking these discretionary expenses and see how much you’re spending. You could be surprised.
Is a Luxury Apartment Worth It?
Only you can decide whether or not a luxury apartment is worth it.
You should take into consideration what you will need to give up to have one. Are you okay with not eating out, shopping, stopping for coffee, and not traveling?
If your budget allows for the nice apartment and you want it, go for it.
If you have to give up enjoying the rest of your life, then no, it might not be worth it.
How Much is Too Expensive for an Apartment?
The rule of thumb is that you shouldn’t spend more than 30 percent of your monthly income on rent. That means if you make $3,000 per month, your rent shouldn’t be over $900 dollars per month.
Of course, if you live in a big, expensive city, then you might have trouble finding a place in your price range. You may have to consider getting a roommate.
How Much Should You Pay for Rent If You Make $100K?
With a yearly income of $100,000 dollars, your rent should be no more than $2,500 dollars per month.
That’s $100,000 dollars divided by 12 months divided by 30 percent.
How Much Rent Can I Afford on a $50,000 Salary?
With a $50,000 per year salary, you should comfortably be able to afford rent of $$1,250 dollars per month or less.
To Sum it All Up:
The truth is, it isn’t easy to afford a luxury apartment, but there are ways to do so. You could get a job that pays $200K a year, start your own business, invest in the stock market, or get a side gig. It all depends on what you’re willing to do and what you’re willing to do without. With some hard work and a little luck, you’ll have that luxury apartment sooner than you know.