If you’re living at home or with someone else and want to get your own place, you already know how expensive it can be. It takes a lot of money to move out on your own. So, if you’re wondering how to save up for an apartment, read on. These tips should help you.
How to Save Up for An Apartment
There are ways you can save money, so you will have what you need when you’re ready to move out.
Here are some of the best ways to start saving today…
1. Cut Costs
I know this can sound easier said than done but chances are you’re spending a lot of money every month on things you don’t really need.
In fact, there’s a good chance you’re spending money that you don’t even realize you’re spending.
Think about how many times you go out for lunch or out to dinner each week, or simply stopping into Starbucks.
I was working a part-time job once filling in for a person that was out of town for the summer, and I would stop and get coffee and a breakfast sandwich every morning before I went to work.
I was working in an antique store, so I had the ability to eat my breakfast while I was working.
At the time they were paying me $11 an hour and one day I realized that my coffee and my breakfast sandwich cost me approximately $11.
That meant I worked an hour each day just to eat breakfast.
$11 might not sound like a lot but that’s $55 for the week. That’s $220 a month.
And that’s just breakfast.
I went to Starbucks other times of the week as well.
The point is if you start writing down and tracking where you’re spending your money every day you will find that you can cut back and save a lot of cash.
It doesn’t mean you can’t have any fun. You just don’t have to go crazy.
But you can find ways to save a substantial amount of money each month once you know where your money is going.
This is true on your monthly expenses as well.
You can get rid of cable and use streaming services.
You can look at your living expenses and cut costs there as well.
You can even save money on your utility bills by turning the heat down in the winter and the a/c up in the summer months.
All of this will add up to substantial savings that you can set aside to rent an apartment.
2. Get a Second Job
Getting a second job is never fun but it’s one way to reach your financial goals.
Depending on how much time you have this could be something you do in the evenings or the weekends.
Even better, you could consider starting a side hustle.
The advantage of a side hustle is that you have control over your time and what you’re doing.
Also, you don’t have a second boss. You are the boss.
Consider selling on Amazon or eBay or doing freelancing.
The options are really endless.
You can make an extra couple hundred dollars a month or even a full-time income depending on how much time and effort you want to put into it.
Regardless, this extra money can be set aside so you can rent an apartment.
You might also end up finding something you are super passionate about.
It could even change your life.
3. Start an Apartment Fund
When I talk about an apartment fund I really just mean separate savings account so you can put all this money you’re going to be making and saving into it.
You’re going to need to save money for a security deposit and your first and last month’s rent.
By keeping this money in a separate account you’ll be less likely to spend it on other things.
If you haven’t already, take some time to look at apartments now.
You want to have a good idea of what your monthly rent will be before you actually try to rent an apartment.
Housing costs are going up and they’re never going to go down so you need to be prepared.
4. Create a Budget
No one loves living on a budget. That’s a fact of life.
However, creating one will help you save money.
This will also help you realize your monthly costs and how they’re offset by your monthly income.
A monthly budget makes meeting all of your financial goals easier including saving money for an apartment.
It gives you the information you need to determine what kind of monthly payment you can afford for an apartment and whether you can afford a one-bedroom apartment or two-bedroom apartment.
The more information you have about your finances the better the position you’ll be in when you start your apartment search and get ready to sign a rental application.
5. Improve Your Credit Score
While your credit score might not seem like it’s attached to saving money it really is.
With a good credit score, you’re less likely to have to pay security deposits for utilities and it will be easier to rent an apartment.
If you have a lot of credit card debt or personal loans do what you can to get them paid off before you try to rent an apartment.
Management companies will take a close look at your credit score and if they don’t like what they see it can be very difficult to rent.
6. Get Rid of Stuff You Don’t Use
I tend to be somewhat of a minimalist so I don’t have a lot of stuff sitting around but most people do.
Check out your closet or your garage or wherever you’ve got boxes of stuff stored.
There’s a good chance somebody out there would like what you have and would use it and will pay money for it.
Skip the garage sale. You won’t make any money there unless you have real furniture and expensive items for sale.
Instead, check out eBay for most items and even Poshmark for clothes.
You can get some free listings and you won’t have to pay anything unless you sell your items.
Some say that the average person has $3,000 worth of stuff in their house that they could sell today.
While you might not have that much you might come up with a grand or so.
That will certainly help you save up for an apartment.
7. Ditch the Car
I know that a car equals freedom.
It can be difficult to live without one. I’ve been there before myself.
But if you really want to save a lot of money, getting rid of your car is one way to do it.
That’s especially true if you have a car payment.
Check out public transportation, carpooling, and even bike riding to work.
You also want to make sure that your new apartment is close to public transportation.
If you do get rid of your car you can save hundreds of dollars a month and thousands of dollars a year.
It won’t take you very long to save up the money you need to get an apartment going this route.
8. Drop the Extras
One easy way to save money to get an apartment is to drop the extra things you do or have and don’t really need.
That’s going to include things such as a gym membership or cable TV or a landline if you happen to have one.
You can get your exercise by walking or running.
Buy free weights for a home gym.
You can stream services to watch TV
In this day and age, no one needs a landline.
The point is if you have extras in your life right now that you’re paying for get rid of them. You might be able to save a hundred or two hundred or even $300 a month.
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How much Money Should You Save for An Apartment?
When it comes to how much money you should save for an apartment it’s all going to depend on where you live and the cost of living in your area and your personal situation.
What you do need to take into consideration is that you’re going to have to pay your first month, last month’s rent, and deposit upfront.
So if your rent is $1,000 a month. You’re going to need $3,000 right there.
Then you have to factor in deposits for utility companies.
If you’ve got great credit you won’t have to put a deposit down but if your credit is less-than-stellar chances are you will.
These deposits can be hundreds of dollars.
You also need some furniture in your apartment.
You don’t need anything fancy and secondhand certainly works.
Don’t forget dishes and stuff for your kitchen and bathrooms as well.
Finally, if you do already have furniture you’re going to have to find a way to move it to this new apartment.
If you have to rent a truck or have a moving company move you, you need to add those expenses in as well.
The best thing you can do is to call around and find out what these expenses are going to be for your personal situation.
Go look at some apartments and find out what the rents are.
Call the utility companies or look up online what their requirements are for deposits.
Check out some consignment stores or second-hand stores to see what kind of prices they have on furniture and what they have available.
Once you do this you’re going to have a good idea of what you need before you move out.
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To Sum it All Up:
Moving into your own place is expensive. There’s no getting around that. The good news is there are ways you can save up quite a bit of money in a short period of time, so you can find your own place and move in. Yes, it may take a little sacrifice in your life but the outcome will certainly be worth it.