How Much Should I Save Up For An Apartment?

Anyone looking to move into a new apartment should save at least three times their monthly rent. Let’s take a look at a few ways to determine how much you’ll need for rent payments and how you can save money in the process.

How Much Should You Save Up For An Apartment?

As a general rule, it’s recommended to save at least three times your rent before moving into an apartment. This means if the apartment rent is $1,000 per month, you should have at least $3,000 saved.

Of course, you will also need additional savings for costs beyond your monthly rent. Always have additional money set aside for groceries and other basic living expenses. Use these simple tips below to start saving for your new apartment.

Start By Creating A Budget

Properly creating an initial budget will help you understand just how much money you will need to save and spend. Your income is the first factor that will determine how much you can spend on rent each month.

It’s suggested to follow the 50/30/20 rule. This rule allocates 50% of your income to living essentials like rent, 30% to discretionary things, and 20% to savings or debt repayment. For instance, if you earn $3,500 per month, you will be able to comfortably spend $1,750 on monthly rent.

Compare Apartment Costs

Be thorough as you look through active apartment listings in your desired area. This will give you a clear indication of how much you are likely to pay in rent. Researching average utility costs in your area will also be helpful when coming up with a budget.

Consider Finding A Roommate

Oftentimes, two-bedroom apartments offer more value than one-bedroom and studio apartments. If you wish to rent a two-bedroom apartment but fear you’ll struggle to afford it, consider the idea of finding someone to share the space and cost with.

Cut Back On Unnecessary Expenses

Cutting back on unnecessary spending at this time can make renting a more affordable situation. Going out less often or purchasing used items instead of new ones can make big differences when coming up with a budget. It’s always wise to look back and evaluate your spending habits. Determine what is and what isn’t necessary at this time.