Choosing an apartment after looking at what seems like hundreds can be a daunting task. Deciding how much apartment you can afford is one of the most important decisions a renter will have to make.
This financial decision will help to determine a number of factors, including:
Consider All Current Expenses
When deciding how much apartment you can afford, you should carefully consider all monthly expenses in relation to your monthly income. Make sure to include:
- Gas, Electric, Heat
- Cell Phone
- Car Payment & Insurance
- Medical Expenses
Once you have a full tally of what you have to spend on the living space you choose, be sure to factor in money to put towards savings, in case of emergency or unforeseen issues such as car repairs. Try not to stretch your dollars too much as unexpected costs can pop up and leave you in a difficult situation.
If after you tally what you need for general living expenses and if the apartment you want is a little out of reach, go back and see if there are any expenses you can reasonably cut down on or eliminate all together. Be realistic though, don’t cut out your entertainment budget all together, otherwise you’ll be stuck at home all the time.
You might be able to cut down on:
- Cable TV expenses
- Frivolous spending on apps for your phone
- Cut the speed of your Internet connection to save a little
- Cut down on dining out
Once you’ve established the amount of money you can afford to spend in rent, start to look for available apartments in that price range.