Choosing an apartment on rent could be both daunting and exciting!
It’s exciting because you’re entering a new world of happiness while it’s tough that you may need to manage your budget.
Do you think it’s that difficult?
Well, absolutely not!
Though it seems overwhelming, learning how to determine moving costs and develop a budget for your rental living would help you start your first apartment on rent from Kasa Living on a robust financial foothold.
Here are the tips you should consider to effectively budget your rental expenses.
Rent usually consumes a significant amount of your take-home earnings, so budget accordingly. The 50-30-20 approach is an excellent first step when figuring out how much money you can spend on rent.
- 50% Needs: This category comprises necessities for livelihood and the costs to pay. This includes rent, utilities, insurance, health care, and groceries.
- 30% Wants: This category includes things like eating out, holidays, cable TV, and entertaining activities.
- 20% Savings: Set aside 20% of your net income for savings and investments in any government schemes or the stock market.
The cost of rent varies by city, state, and season. Renting is usually less expensive during the off-season, which is the winter. A few popular cities are listed here.
- Don’t Overlook Technology
You may be responsible for paying costs such as internet, smartphone bills, cable, and streaming services. Many providers offer new renters discounts on internet and cable installation, as well as package options or bundles, so check around for a good deal that suits you the best.
Also, don’t forget to consider your requirements. Do you need cable and five streaming services, or could you do without them? These charges may appear insignificant but removing them will save you money every month.
One of your key utilities will almost certainly be electricity. Before you move in, make sure you phone your provider and have your utilities set up in your name.
There are numerous ways to save money on your power bill, so do your research to ensure you are not overspending. Check to see if air conditioning is included in your utility bill, and plan accordingly for the summer months.
Tip: You can consider implementing renewable energy in your apartment.
- Prioritize Parking Expenses
Many short-term rentals come with free parking while some require you to pay for it. You may discover that you require parking but that your apartment building does not provide it, in which case you must pay for a spot in a nearby garage. You may have to pay for parking at work, so keep that in mind when planning your budget.
- Renters’ Insurance
Considering renters’ insurance would help protect your valuables from harm caused by unpredicted circumstances. It’s usual for landlords to request this insurance as part of your lease agreement. While it’s not expensive, it can save you thousands of dollars in the event of a fire or theft.
Obtain several estimates and compare insurance costs to ensure that your personalized insurance coverage suits your lifestyle and budget. If you have a car, bundling your auto and renters’ insurance could save you even more money.
In the event of a break-in or a property disaster, your renter’s insurance policy will come in handy.
Budgeting is more of an art and there is no one-size-fits-all approach to money management. When picking an apartment, think about your possibilities and all of the fees involved.
When you know your finances are in order, you can relax and enjoy living in your apartment!