Table of Contents
- 1 How to Budget for Your New Apartment
- 1.1 Know your income
- 1.2 Find out what you need to live on in a month.
- 1.3 Figure out how much money you have leftover after living expenses are paid for the month
- 1.4 Decide where to spend that leftover money-saving, paying off debt, or spending it on something fun like going out with friends.
- 1.5 Create a budget and stick to it!
How to Budget for Your New Apartment
When you’re moving into a new apartment, the last thing you want to worry about is money. But unless you have a reasonable budget in place, that’s exactly what you’ll be doing. Here are five tips to help you get started.
Know your income
The first step in creating a budget is knowing how much money you make. There are many ways to determine how much you make, such as reviewing your last pay stubs or checking online banking. Create three different budgets based on the lowest, average, and highest amounts you could make this month if your salary fluctuates.
Find out what you need to live on in a month.
Once you know how much money you make, find out how much it costs to live your current lifestyle. There are many great websites that can help keep track of daily, weekly, and yearly expenses. Some good ones to start with are Manilla, Mint, and Walletpop.
Figure out how much money you have leftover after living expenses are paid for the month
If your monthly income is $3000, and your rent costs $1000, then you should have $2000 to spend on everything else! However, if it turns out that you only bring in $2000 but need $2400 to live, then you will need to either get a second job or find ways to cut down on your monthly expenses.
Decide where to spend that leftover money-saving, paying off debt, or spending it on something fun like going out with friends.
Now that you have an idea of how much money you make and how much is left over after bills, you need to decide what to do with that money. Are there any bills you can pay off early, such as credit cards or student loans? Do you want to put some of it away for savings? Or is there room in your budget left over to spend it on things like going out and socializing with friends, buying new clothes, or covering the costs of a hobby such as golfing or biking?
Create a budget and stick to it!
Once you know how much money you make and what your monthly expenses look like, all you need to do is fill in the blanks on your budget. Shop around for lower prices on essentials, create a more strict cleaning schedule, put off buying those new shoes, and instead take your lunch to work 5 days a week. The more you save, the sooner you can achieve those goals!
Summary
Creating a budget is the key to staying on top of your finances, and it’s especially important when you’re just starting out in life. By knowing how much money you make each month and what your monthly expenses are, you can create a budget that will help you save for future goals or pay off bills more quickly. Just be sure to stick to your budget once it’s created!