How to Budget for an Apartment

How to Budget for an Apartment


Hi, it’s LaTisha from YoungFinances.com. Today,
we’re talking about how to budget for an apartment. So if you’re thinking about moving out and
you’re trying to figure out if you can get your own place, then it’s time to set up a
budget. And I always say, “Set up a budget,” but your budget changes. It changes as you
change and especially when you make new decisions and you decide to do some new things with
your life, like move into an apartment. So when I decided to get my first apartment,
I knew there were a couple of things that I was going to need, namely all the little
things that go into an apartment, like furniture, like tables and chairs I guess because people
have to sit somewhere. And then I also wanted plants. All of these things you’re going to
need to remember to budget for. So I’m going to help you budget for an apartment, so you
can be ready to move out. Step one, set your monthly amount that you’d
like to pay for rent. If you make $1000 a month and you think you can afford $500 a
month, just stop. Your monthly rent expense should be no more than about 23% to 25% of
your take home pay. Not your gross pay, but what you exactly bring home each month. So
if you bring home $1000 a month, then 23% to 25% is $230 to $250. It seems like a small
amount, but you probably need to get a room mate or you probably need to wait until you’re
really ready to move out. Then, for your utilities, you’re going to
want to budget about 10% a month for utilities. So that’s going to bring your total housing
payment to about 33% to 35% a month. And that’s a really good place to be when you’re thinking
about renting a new place or moving out to an apartment. So when I got my first job,
I had a take home pay of just around 2000 or a little over 2000, and my first apartment
was $680. Actually, it was started out… it was $640 a month in rent, and then I had
about $40 more in utilities. So I was spending about $680 to live on my own, and I was able
to maintain that payment because I used that percentage rule. So keep that percentage rule
in mind. The next thing that you need to do is budget
for all of those little expenses and for all of your furniture and things like that. I
was on an all cash budget because I was in the process of paying off my credit card debt.
I couldn’t go to that place where black people and white people buy furniture… at the Red House! – and use credit. So I had to use all cash. I decided to go to IKEA because it was a great
place where I could get inexpensive furniture and kind of furnish the apartment. So I got
pieces a little bit at a time. I didn’t go out and furnish the entire apartment when
I first moved in because that would have increased my monthly expenses. So I set aside a little
bit of money each paycheck in each month in order to furnish my apartment. Then finally, set aside some cash just for
the little stuff, food that you’re going to be eating as soon as you move in and any of
these last-minute surprises. I had a gas bill that I had to pay from an old apartment I
didn’t even know I had that I had to pay that came $47 out of pocket. I had to make sure
that I had some extra cash saved up in order to take care of those expenses. So those are my tips on budgeting for an apartment.
Now that you live on your own, think of all the fun stuff you get to do. Meow. You could start your
own YouTube channel. From L.A. to Tokyo! Meow. Meow. I have an entire post on how I saved
up for moving and all of the little amounts that I saved up for and exactly what I spent
when I moved into my new apartment. So if you go to youngfinances.com, you can read
that post. I’ll put the link in the box below, and I’d also love for you to leave a comment
below. If you have any suggestions for people that are moving out, this video was requested
and so I really appreciate any suggestions. If you have ideas for our videos upcoming,
just let me know and I will get on it. In the meantime, subscribe because I’ve got new
videos coming out every Tuesday and be sure to hit the Like button and give it a thumbs-up
if you liked it. Thank you so much for watching, and I’ll see you guys next week. Bye.

38 thoughts on “How to Budget for an Apartment

  1. I want to move to la with my friend. so should we get jobs in la then get an apartment or get an apartment then get jobs?

  2. I'm in the process of moving for the first time myself. one thing I did that really helped me was I got a big bin and just started buying little things here and there so I wouldn't be so strapped for cash and overwhelmed when I moved.

  3. Great video but no one straight out of college wants a roommate lol. Its best to get a second job or start your own business.

  4. Well i make $1200 a month and pay $795 for a small studio apartment and a dog but i live in Chicago do i dont need a car which saves some money, untill i graduate. But everyone is different.

  5. just found this. i need advice. i make roughly 1200 each month. so would 550 be to much?? water would be 30 where im moving an lights is seperate. this would be my first place.

  6. I am a senior in high school and I am about to start college fall of 2016 but this summer I am moving to be closer to my university. I will be moving with two people but I am really scared because I don't know how to budget money and I was wondering if you have any advice you could give me ?

  7. I was all about the video until the "black and white people" buy furniture comment. Oy vay. Not needed. Moving on.

  8. What kind of job do you have that is best suitable for being able to have your own apartment? Or what kind of job should I look for to be able to hold an apt for myself?

  9. Next video needs to be on how to land a decent job/career that's willing to actually pay good and offer bonuses! Everyone can't have a roommate especially if they have children even one child. Think about it nowadays daycare expenses need to be added in along with rent, car payment, insurance (medical and rental) utilities, groceries, gas and God forbid if you have student loans, credit cards or any other fees ….. Life is hard after high school trust and believe…..I'm just venting excuse me lol

  10. like your advice and realistic is key have a studio apt. and grateful it is in a range I can easily afford and furnished it with nice things by upgrading little at a time.

  11. where did u live!!! … rent in LA starts at 850 (for a run down studio in the hood)…. 😧 I'm moving to vegas

  12. The 25% income rule for renting is false. I take home $150 per month so theres no way I can buy an apart ment for less than $50. U need to purchase money from ur parents so you can aford it.

  13. I live in Myrtle Beach SC, and the price of living is outrageous. Most live with their families. Which is a pain for many who want to break away.

  14. hi do you have anything up to date . all your videos are 2 years old or older. if you have some new ones that I may have missed please tell me where they are. thank you

  15. This is not right I make 2140 a month and I can aford an aparment for 630 a month plus utility. People need to budget themselves. Is not hard.

  16. Also, think about everything that you do in a day, for the week. It will make you list ALL of the items you need that you don't realize you use daily/weekly, because they're just always there. You'll need your own… E.V.E.R.Y.T.H.I.N.G. Start your list with things that you can't take from your parent's house / parents' houses and it'll be a real eye-opener.

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