Tag Archive for: budgeting

A GUIDE TO AFFORDING YOUR FIRST APARTMENT

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Congratulations on your new milestone… moving into your first apartment! While this is sure to be an exciting next chapter, it can also be overwhelming trying to understand the financial cost of apartment living. As a first-time renter, recognizing the financial responsibilities associated with renting will allow you to make smart decisions and ensure you can live comfortably. Here are a few things to consider when planning for your first apartment.

 

UNDERSTANDING RENTAL COSTS

In your research, you may have noticed that rental costs vary from place to place. Here are five main categories to help you better understand what costs go into apartment living.

 

  • Security Deposit: This is typically equivalent to one month’s rent and is required by most property managers. This cost is typically refunded to you once the rental agreement is terminated.
  • Monthly Rent: (Your most expensive cost): The cost of rent varies from city to city and complex to complex. Therefore, do some research to find out what the average cost of rent is in your area to determine a monetary goal. A good rule of thumb is to keep the cost of rent around 30% of your monthly income. This will ensure you have enough left over for other living expenses.
  • Fees: There are several types of fees to consider when looking to rent an apartment – application fees, pet fees, parking fees, utility fees, and early move-out fees are fees you will typically come across in your apartment hunt. If you have any questions, reference the lease agreement, or contact the property management office.
  • Utilities: Electricity, water, gas, trash, and internet are all costs to consider when moving into your first apartment. The cost of some utilities will vary depending on monthly usage, but others will be a flat monthly rate. Before moving in, understand which utilities will be added onto your monthly bill and which ones you may be responsible for.
  • Renter’s Insurance: Like most insurances, renter’s insurance is meant to protect against damage caused by unexpected events. Most landlords require proof of renter’s insurance as part of the lease agreement. Insurance can be paid monthly or annually depending on your provider. Contact local insurance agencies to find a policy that works best for you.

 

IDENTIFY YOUR ESSENTIAL EXPENSES

When identifying your essential expenses, be sure to distinguish between your wants and needs. If necessary, make a list of non-negotiable expenses that contribute to your safety and survival (needs). Then, you can make a list of non-essential purchases that add fun and enjoyment to your life (wants). Having this list available will allow you to make informed financial decisions that will save you from stressing about your finances.

 

Examples of essential expenses:

  • Rent
  • Utilities
  • Insurance
  • Groceries
  • Gas or transportation

 

Additional expenses to consider:

  • Home Décor and Furnishings
  • Laundry
  • Parking
  • Pet Fees
  • Amenities Fee

 

MORE TIPS FOR AFFORDING YOUR FIRST APARTMENT

Set Your Savings Goal:  Based on your research you should be able to determine an average monthly cost for renting your first apartment. With this information, you can create a budget that works best for you.

Consider Having a Roommate: Having a roommate can help decrease costs by splitting rent payments in half and sharing other monthly expenses.

Negotiate Your Rental Agreement: Some areas of your rental agreement may be negotiable. Based on your needs, communicate your expectations to your landlord and negotiate a contract that is agreeable for both parties.

Prioritize Needs Over Wants: While indulging in your wants are enjoyable, it’s important to prioritize your needs so you don’t fall into an unmanageable financial situation.

 

Saving Money for Vacation

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Vacations are a wonderful time to relax on a beach, enjoy a cruise, or stroll through a new city. But one of the best parts is not having to stress over how to pay for it.

 

The first step for any vacation is to identify your budget. By planning out your finances, you can enjoy the perfect vacation that won’t break the bank. To help you get started, here are five tips to consider when you begin planning your budget-friendly vacation….

 

  1. Open a savings account.

How much you save for your trip will help determine your budget. Having a separate savings account devoted to vacations, trips, or other getaways can make the planning process easier. Consider having a certain amount automatically deposited into a travel savings account each week. By putting funds into a dedicated travel account, you can create a healthy saving habit and build up your vacation spending money therefore lessening stress and allowing more time for rest and relaxation.

 

  1. Plan ahead and take advantage of cost-saving tips and tricks.

When planning your vacation, do research to find any discounts or deals on activities, accommodations, transportation, rentals, etc. Early scouting can save you money whereas last-minute decisions may cost you extra.

 

  1. Drive or fly?

Because you’ve successfully prepared, you’ve already done research on where you’re going and how long it will take to get there. Now is the time to answer the infamous question – do we drive or fly? Fortunately, there is no right or wrong answer. Consider how long it will take to drive, how many times you’ll have to fill up for gas, potential food costs and if you will be staying overnight. Then, research flight and rental car cost and decide which one is more economical for your situation.

 

  1. Choose an unconventional location.

If you plan on vacationing in popular hot spot locations like Panama City Beach, FL; Miami, FL; or Gulf Shores, AL, it may be more expensive than if you travel to less popular destinations. If you are set on going to a vacation hot spot, consider looking at the surrounding areas to help decrease costs.

 

  1. Set up card controls and keep track of your spending activity.

Two thing no one wants to worry about on vacation – money and fraudulent activity. By setting up card controls, you can easily keep track of all your purchases and identify if there is any suspicious activity. By actively tracking your vacation spending, you can stay in control of your budget as well as ensure your hard-earned money stays safe.

 

Ultimately, being in control of your budget (and sticking to it) can empower you to have the relaxing, worry-free vacation you deserve.

 

Get on top of your vacation savings today! Open your savings account now and start saving up for your dream vacation.