First-time renter? Here’s a guide on how to budget!
Finding the right apartment is exciting, but determining what you can afford is crucial to avoiding financial stress. At Harborside Village Apartments, we know that planning your budget wisely can help you find a comfortable home without breaking the bank. Below are some common questions renters ask when determining how much apartment they can afford.
What Is the 50-20-30 Rule?
The 50-20-30 rule suggests dividing your income into three parts:
- 50% for essentials like rent, utilities, and groceries,
- 20% for savings and debt repayments, and
- 30% for non-essential spending like dining out and entertainment.
- This method can be a helpful guide in managing your income while maintaining a balanced lifestyle.
Should I Calculate Rent with Gross Income or Net Income?
Many experts suggest using gross income to calculate rent. Gross income is your total income before taxes and other deductions. However, some people prefer using net income (take-home pay) for a more realistic look at what they can comfortably afford each month after deducting taxes, retirement contributions, and other expenses.
Do I Have to Make Three Times as Much Money as Monthly Rent?
Some landlords or rental agencies require tenants to make three times the monthly rent. This rule helps ensure that renters can handle rent along with other expenses. For example, if rent is $1,200 per month, you may need to earn at least $3,600 per month to meet this requirement.
How Much of My Paycheck Should I Put Aside?
For those paid biweekly, you may want to budget half of your monthly rent from each paycheck. This helps you allocate the appropriate amount before using your income for other expenses. Setting aside money as soon as you get paid can prevent overspending.
How Much Should I Budget for Monthly Utilities?
On average, you should budget between $100 and $200 for monthly utilities, depending on factors like your apartment’s size and your usage habits. Utilities typically include electricity, gas, water, and internet or cable. Some apartment communities may include certain utilities in your rent, so clarifying this beforehand is essential.
How Do I Set Up a Monthly Budget?
To set up a rent budget:
- Calculate your monthly income (gross or net, depending on your preference).
- Use the 30% rule to determine a reasonable rent amount.
- Account for other monthly expenses like utilities, groceries, and entertainment.
- Allocate funds for savings and debt repayments to ensure you’re balancing your financial obligations.
Should I Split The Rent 50-50 with a Roommate?
While splitting rent 50-50 with a roommate is a straightforward approach, it may not always be fair if one person has a larger room or better amenities. You may want to divide rent based on the room size or other factors to create a more equitable arrangement.
Find Your Ideal Apartment at Harborside Village Apartments
Now that you’ve got a handle on budgeting for your apartment, Harborside Village Apartments offers a range of homes suited to different lifestyles. Whether you’re just starting out or looking for a more spacious option, we’re here to help you find the perfect fit. Contact us today to learn more about our available apartments!
Let Us Be Your Apartment Home!
Whether you need your very first apartment home or are relocating to the area, Apartments of Harborside Village would love to be your dream apartment home. Are you looking for beautiful waterfront apartments in Joppa, Maryland? Let us show you one of our spacious and affordable apartments at the Apartments of Harborside Village. To learn more about our residence options, visit us online, give us a call at 410-679-1130, or email us. To peek into what it’s like to live in our community, follow us on Facebook, Twitter, Pinterest, and YouTube.