Advice for Renting Your First Apartment
June 23, 2008, 4:31 pm
Advice for those just starting out on their own.
When young adults are still living with their parents, they can become consumed by the dream of having their own place. And end to sharing bathrooms with siblings, more privacy and more freedom make the added expense and effort seem completely worthwhile.
Unfortunately, the cost of moving out can be a shocker. What good is your new-found freedom if you can't afford to do anything with it? Planning your finances for a big move involves much more than factoring the rent into your budget.
Living on your own means feeding yourself, and that means regular trips to the store. Budget at least $40 a week for groceries, or more depending upon your eating habits. Keep your eyes open for specials and coupons to save money, but stick to generic brands whenever you can.
You'll also need to plan for other new expenses, like toilet paper, cleaning supplies, soap, shampoo, laundry detergent, toothpaste, etc.
Since we're talking about your first apartment, you probably need a lot of things you don't own yet, like dishes, utensils, a vacuum cleaner, etc.
After the rent, the biggest expense is utilities. Electric and gas bills can fluctuate wildly depending on the season and how well the apartment is insulated. Ask neighbors what the utility bills typically are before committing to an apartment. If you are in a warm climate, look for a unit on the north or east side of the building, so you won't have the afternoon sun beating down on you.
Don't forget to ask whether water and trash pickup are included with the rent. They usually are, but don't take anything for granted.
The telephone is another utility that can add up to a lot of money. These days, it may be wiser to forgo a landline altogether and stick with just a cell phone. But make sure you shop competitively for the best rate plan, and don't go for expensive extras like text messaging or purchased ringtones.
If you can't live without cable television, you can factor in another $25-$100 into your monthly budget, depending upon how many premium channels you order.
Seem overwhelming? We've only just scratched the surface. If you need help with all of these expenses, you can find a roommate and cut them in half. Be careful whom you choose, though, since you'll likely be stuck in a lease with them for 6 months to a year. That will seem a lot longer if you discover you can't stand living with them.
Even with the risk involved with taking on a roommate, a two-bedroom apartment split two ways is a lot less expensive than a single unit, and you'll be able to split the utilities and other shared expenses, like food and household supplies. Consider it.
Complete our household budget worksheet. The worksheet will help us recommend a solution to reduce your credit debt.
