Whether you rent or buy, one thing is for sure: budgeting is important. Here are four easy tips to help you manage your finances so that your rent money goes further than it ever has before:
Figure out what you need to spend.
As you begin to understand how much money you make and the expenses you have, start with the basics to figure out your monthly budget:
- Calculate your monthly income. If you receive a paycheck or other fixed income, subtract taxes from that amount before calculating what's left over for your budgeting purposes.
- Identify all of your regular monthly expenses. These include items like rent/car/utilities/groceries/streaming services and more. Other common recurring bills may include student loans, medical expenses or credit card bills.
- Add up these regular expenses to get an idea of how much money is being spent each month. Then, subtract this number from your total monthly income to calculate the remainder of what is available for discretionary spending.
After figuring out what you need to spend and save, you can determine if you need to downsize certain items like streaming services or adding roommates instead of living solo.
Be prepared.
You might be the type of person who prefers to live day-by-day and rarely plans ahead. While this lifestyle is exciting, this mindset can lead to big problems when it comes to budgeting. It's important to prepare for expenses before they happen so that money isn't a problem when an unexpected bill pops up.
There are two main ways that we can prepare for unexpected expenses: planning ahead and having an emergency fund. Planning ahead means making adjustments or saving up enough money for an emergency. An emergency fund is an especially good idea if your work industry is unstable. Depending on your lifestyle and costs, the rule of thumb is to save 3-6 months of expenses in your emergency fund.
Look for little ways to save money when shopping.
- Look for the best deals. For example, if you're planning on buying a TV or game console, look at different websites to find the best deal on what you want. If you can wait, hold out to see if the item goes on sale during holidays.
- Look for coupons. If you're shopping online, join the website mailing list for a coupon code to use in the future.
- Look for sales and discounts everywhere possible before making any purchases. There are even internet browser extensions that are free to download and will search the web for discount codes for you!
Take advantage of your apartment amenities.
At first glance, your apartment might seem like a place to sleep and store some stuff. But you're living in an environment that's designed to make life easier for you, so take advantage of the amenities it offers. If your apartment has a fitness center in the building, save yourself the monthly gym fees and start using it.
Get to know your neighbors, both those in your building and those who live nearby. You never know when you'll need to borrow a cup of sugar or ask for advice on where to find good deals. Neighbors can be a great resource, so it is a good idea to exchange phone numbers with at least one neighbor.
With these tips, you can live within your means while living comfortably in an apartment.
- Figure out what you need to spend
- Be prepared
- Look for little ways to save money when shopping
- Take advantage of your apartment amenities (if they exist)
Make sure you're always spending less than what's coming in each month—it's simple math! Even if that means going without some luxuries or cutting back on food expenses. If you are a student and rent is still a challenge after trimming down expenses as much as possible, consider looking into furnished housing options or another apartment that can accommodate a roommate to offset monthly costs!
We hope this article has helped you think about how to budget for your apartment. If you’re still struggling with the idea of living within a budget, remember that it takes practice! The most important thing is to start small and then work your way up. Don’t expect perfection from yourself—just do your best. Looking for a new apartment? We can help you with that. Use Spot Easy to discover verified apartment listings and speak to an agent on the most trusted platform in Boston.