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How to Budget for Your First Apartment (Checklist and Tips)

By: Stephanie Soderborg and Nicole DiCenso
October 31, 2019

If you are a first-time renter, knowing how to budget for your first apartment is crucial. Following our first apartment budgeting checklist below will help you stay on top of your finances.

First Apartment Budgeting Checklist

When building out your budgeting checklist for your new apartment, don’t forget to include the below essentials.

1. Moving Expenses

Moving is a one-time expense, but an important one to budget for. If you plan to move cross-country, you will likely need to invest in professional movers. You may also want to use a moving company for a local move. For a breakdown of expected costs for moving, check out our moving cost guide here.

You also may need to buy furniture for your new place, so factor this into your moving costs as a one-time expense. If it's your first apartment, look into buying cheaper furniture.

2. Rent

Rent will likely take up a large portion of your take-home pay, so make sure you plan accordingly. The 50-30-20 rule is a good starting off point for determining how much money you can afford to spend on rent.

Making your monthly rent payments on time is critical, so make sure you have a monthly budget that ensures you can make these payments.

3. Electricity

You will likely have to pay for electricity as one of your main utilities. Make sure you call your provider before moving in and get your utilities set up under your name.

There are many ways you can save on your electric bill, so do your research to make sure you are not spending more than you need to. Also, check if you pay for air conditioning as part of your electric bill and budget accordingly for summer months. If you are moving to a new city, make sure to do some research on the average cost of utilities in the area.

4. Heating and Gas

Sometimes heat and natural gas will be covered by your landlord, sometimes you will have to pay this utility. Make sure you check before you move in, and ask your landlord what the expected monthly costs are.

Remember, your bill may spike in colder months as you crank up your heat. Curious about how to save on your heating and gas bills, even in the winter months? Check out our tips for lowering your utility bill in winter.

5. Cable/Internet

Cable bills are now synonymous with cable and internet. While you may decide to cut the cable cord and forgo all the cable channels for alternatives like Netflix, you are definitely going to need internet.

The good news is you can normally use the same provider for both and choose a package that works best for you. Plus, most providers even have a mobile app that you can manage your bill from.

6.Streaming Services (Netflix, Hulu, HBO Now, Etc.)

Streaming services are oh-so-popular these days, and paying for a streaming service over cable can help you save money in the long run. Just don't forget to factor these costs into your monthly budget.

7. Other Utilities

Double-check if there are any other utilities you need to cover before you move in. Some places you have to pay for trash or an amenities fee.

8. Car Payments and Car Loans

If you own a car, you most likely have to make car payments on a monthly basis, or at least pay your car insurance. This can add up, so have it on your budget checklist.

9. Parking

Some places come with free parking, some apartments require you to pay for a parking spot. You may find you need parking but your apartment building doesn’t offer it, so you need to pay for a spot in a nearby garage. Parking for work may also be something you have to pay for, so make sure to factor this into your budget.

10. Other Transportation Expenses

Are you taking the bus to work every day or commuting via train? Perhaps you ride city bikes on a regular basis. Public transportation may be cheaper than owning or using your car, but still costs money, so factor this into your monthly spending.

11. Groceries and Food

If you are living on your own, you also have to feed yourself. Think about how often you plan to grocery shop versus eat out, and factor in your monthly food costs.

12. Phone Bill

Whether it is your cell phone or a landline, you have to pay to use your phone every month.

13. Credit Card Payments

If you use a credit card, make sure you pay off the minimum amount monthly. Paying your credit card is a critical component to building up a good credit score, which, in turn, impacts your ability to rent and get loans later in life.

14. Student Loan Payments

There is a good chance that if you are getting your first apartment, you may have just graduated from college. If you are like many Americans, this also means you have monthly student loan payments.

15. Health Insurance

Some people have health insurance covered by their work, others have to figure it out on their own. Make sure you budget accordingly.

Even if your work covers health insurance, take some time to look through your coverage. Understand what co-pays, i.e. the portion you pay before insurance covers the rest, you will have for any medical costs.

16. Renter's Insurance

While not mandatory for most rentals, having renter's insurance is a really good idea. It is normally cheap and gives you fantastic coverage.

17. Gym Membership

Do you love spin class? Belong to a gym? Spend money every week on your favorite fitness class? These costs add up, so make sure you include them in your budgeting process. If a gym membership is too costly as you get set up in your first apartment, check out our tips for setting up a home gym.

18. Other Subscriptions

Subscriptions can range from your Audible account to a wine club you belong to. Make sure you take stock of all your monthly payments and include them in your budget.

19. Entertainment

Give yourself a budget for fun. Take a look at your spending habits and figure out how much money you need to set aside in order to entertain yourself with movies, fancy dinners, outings, and other activities.

Apartment Budgeting Tips

Knowing what to budget for is step one. But knowing how to budget is equally important. Here are some of our top tips on how to budget for an apartment.

1. Download Your Bank’s Mobile Application

It’s important you have immediate access to your bank accounts so you know exactly how much money you have in your checking and savings accounts. If you have a credit card with the bank, you can check your spending and credit limit as well. With the ability to constantly check your balance, you’ll always know whether or not you can splurge on that $60 pillow from Urban Outfitters or if you should look for your bedding decor at a store like Target.

You can download some of the popular banking apps for iPhone here:

You can download some of the popular banking apps for Android here:

2. Use a Spreadsheet

One of the most basic, but most effective, ways to keep a budget is to write it all down on paper. Whether you use Google Docs or Excel, mapping out your monthly spending and financial goals in a spreadsheet will benefit you in a few different ways.

First, you have the ability to decide how much you’d like to spend on certain expenses based on your monthly income, which is helpful because it will instill a more conscious effort to keep your spending in check.

Second, you’ll be able to compare what you’ve budgeted per expense to what you’re actually spending per expense. This will tell you where you might need to cut back or where you have the flexibility to spend a little more.

A spreadsheet can be particularly helpful in the first few months of moving into your first place, as many additional expenses pop up that you may not think about when financially planning for your new place. Spreadsheet budgets give you a way to see how all of your money is moving in one, simplified place.

Download our sample Budget Tracker!

(To use the Budget Tracker, open, go to File –> Make a copy… and create your own)

3. Use a Budgeting App

You might find writing down every single purchase and expense a little tedious. There are mobile applications that were created to make budgeting simple.

Apps like Clarity and Mint help keep track of your spending by connecting to your bank account and credit cards, and organizing your monthly expenses into standard spending categories like bills, entertainment, and groceries.

With these apps, you’ll be able to see real-time updates on your spending as well as create alerts for when you’ve overspent in a specific category. A small catch of using an app over a spreadsheet is that sometimes the apps don’t properly categorize certain purchases. However, you always have the ability to go in and categorize an expense if need be.

Final Thoughts

It's never too early to start creating a financial nest egg for emergency funds, and even think about retirement savings. Both your peace of mind and your bank account will thank you for taking the time to organize your personal finances. Plus, when you know your money is in order, you will enjoy your first apartment stress-free!

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