The hunt for an apartment becomes a much more interesting process once you earn some money for your Zillow addiction. You have been working hard throughout the years and finally, you managed to get that mid-level job in a company like Deloitte or that promising Series B startup. You are about to sign a lease agreement, and it definitely feels intimidating. Indeed, it is a financial challenge, but you are smart enough to deal with it.
First, prepare yourself for the nasty surprise the landlord will give you – it will concern the security deposit required to cover either one or both first and last months of rent. If you don’t have at least three months of rent in cash, you better reconsider signing a lease.
Remember to do the math and figure out the “Rule of 30” meaning that you are supposed to spend no more than 30% of your salary on renting. Thus, theoretically, you can afford a $2,000 rent per month if you earn $80,000 a year. Still, if you plan to invest into your 401k and purchase a good bottle of wine, stick to smaller numbers.
The next thing you should watch out for is the furniture trap. You can spend $4k on a mid-century modern sofa by visiting West Elm or by browsing Article website. 💤 Do not find yourself in a position of furnishing a whole apartment in one or two days. Buy basic furniture items – bed and table – and wait for the rest to come later.
There are always those costs of living you need to take into consideration. Utilities, Internet and renter’s insurance are going to add up $200-$300 more per month. Moreover, you will need to calculate the price of groceries that is bound to be higher than ordering food. Although you might pay a lot for healthy diet in the city, you will pay even more for going to the doctor because of living on ramen.
There is something that sets apart adults from kids. Open a high-yield savings account meant for you move-out fund. This way, you will have another payment to take care of regularly. It will help you gain some leverage while negotiating with the landlord.
The process of moving out is stressful and rather expensive, and sometimes it makes you doubt if it was all worth it. Still, being able to live in your own apartment where you can adjust temperature according to your needs is totally worth every penny. Do the math and save, and go get that apartment you deserve!