Major Money Moves: How to Save for an Apartment

April 7, 2020

When it comes to finding a new place to live, being organized and financially mindful is key. Whether you’re getting ready to embark on your first apartment or your next unit is one in a long line of apartments, having a solid stash of savings is always a good idea.

Today, we’re providing a few helpful tips and tricks to help you save for an apartment to make your transition as smooth as possible.

4 ways to get financially ready for renting

1. Check on your credit score — As a part of the approval process, landlords and renting companies will likely check your credit to make sure you’ll be able to keep up with your monthly payments. If your credit is in good standing, you’ll want to continue your good habits to safeguard your good score.

If your credit could use a boost, start changing your spending and repayment behaviors to help bring this score up as you prepare for renting. It may be a good decision, depending on your current financial standing, to prioritize paying your outstanding debts.

While this may not necessarily be savings oriented, getting a hold of your credit and debts can help promote healthier money behaviors for future savings.

2. Audit your current spending — Creating savings goals can look different for everyone. However, a good place, generally speaking, for most to begin is to survey how they’ve been spending their money. In doing this, you can assess where your money has been going and if your current spending behaviors are sustainable considering your future goals.

3. Make a budget you can stick to — Start to think about the logistics of where you’ll be living and your monthly expenses like groceries, utility bills, transportation. In this budget, make sure you build in a savings stream to pay for apartment expenses, like rent, a security deposit, and furniture.

4. Consider low cost of living areas — One way to make saving for an apartment easier is to choose a city, town, or neighborhood that has a low cost of living. A lower cost of living area doesn’t just affect the rent but potentially also your price of groceries, access to affordable health care, and the cost of homes (if you decide later on you’d like to purchase rather than rent).

Extra expenses to keep in mind

Saving for an apartment doesn’t just begin and end with saving enough money to pay for your rent and security deposit. As briefly mentioned previously, you’ll need to consider the cost of survival, too. How much will your food, activities, exercise, etc. cost?

As you begin to take our four tips into consideration, be sure you’re as exhaustive as possible about your lifestyle and habits. Research your intended location and check to make sure it offers everything you enjoy at a price you can afford. Even more, if you’re looking for more ways to further cut your living expenses, take a look at our 2020 guide to saving money!

Renting an apartment can be an involved process. For some, it moves expeditiously, and for others, it may take a bit more time. Regardless of what camp you’re in, do your best to stay patient and positive as you journey to find the right home.

Looking for ways to save money before summer approaches?

We’ve got you covered. Take a look at our four tips to achieve a lower electric bill this summer!

Illinois Lending is dedicated to providing loan services that are quick, easy, and most importantly, work best for you! Skip the payday loan and apply online today!

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