Saving up for a security deposit is an accomplishment by itself, but moving out becomes impossible without it. And yes, it is a real challenge, especially for a student.
However, it can be done. All you need is to develop an effective strategy. No need to listen to general advice about avoiding morning coffee. Instead, let’s figure out how you can move out successfully.
Find Your Number
At first, you should have your goal in mind. Do some research to find out the average price of the rent in the area you like. Naturally, this number is different from one area to another. In most cases, landlords ask you to pay the cost of one month rent. Sometimes, the price is the first and the last month rent.
Contact several leasing offices beforehand and ask about their demands. This number will become your goal. Write it down somewhere to keep reminding yourself about the target.
Automate Your Freedom Fund
Motivation alone cannot help you with saving money. You have to deprive yourself of temptation to spend your savings. Create a high-yield savings account (Ally or Marcus). Choose some inspirational name for it, e.g., “Future Apartment”.
Then create an automatic transfer, which will occur automatically after your salary becomes available each month. Set a certain amount that you are sure you can afford, even if it is slightly difficult. The key point here is consistency, not the deposit size.
Be Critical about Subscriptions
It allows you to find sources for saving. Print out the statement of your expenses for the last three months. Try to find unnecessary services you can cut off.
For example, it is possible that you pay $45 monthly for watching films (Hulu, Disney+, Netflix). Do you really need all three of them simultaneously? Cancel one of the subscriptions for six months – you will have $270 for your deposit fund.
Enjoy the Temporary Hard Work
Going to graduate school is not an easy task, why should you complicate your life additionally? You do not need to, because it has an end date. Find some temporary job, which does not interfere with your studying. Tutor undergraduates in your field of expertise, deliver food for Uber Eats during the weekends, walk dogs for Rover.
The point here is not about finding a new job. It is just an additional source of income. Spend five to ten additional hours per week doing this kind of work. The money you earn should go to your deposit fund.
Sell Your Unnecessary Things
Your apartment is probably filled with unnecessary things. The book you have read in the freshmen year can be sold on eBay or Facebook Marketplace. You can also sell electronics, clothes, furniture – there is somebody, who will need them.
Arrange a sale of these items during the weekend and try to sell everything effectively (nice pictures and attractive prices). You not only clean your living place this way, but you also earn some money.
Negotiate Your Existing Expenses
Contact the representatives of your Internet provider. Ask them about the department of retaining the customers and tell them that you are considering switching to the rival services (for example, T-Mobile Home Internet). In most cases, they will be ready to offer you some discount.
You should do the same with your renter’s insurance. Find the best offers and compare prices between different companies (Progressive or Lemonade, for example). Each dollar saved is twelve dollars saved per year.
Allocate Unexpected Income Effectively
All unexpected income (for example, tax refunds, birthday money or scholarship bonus) is not an occasion to have some fun. Instead, try to put 80 percent of this income to your savings account.
It is understandable that you want to have your treat. However, you should not forget that $500 bonus becomes your $400 deposit. Not bad!
Visualize Your Successes
Create a chart. Use special apps for it like Qapital or simply make a spreadsheet. Seeing this number growing gives you motivation. It makes a dream becoming reality.
Celebrate your small successes (hit $500, 25 percent of the goal reached, etc.). It is not about restriction, but rather about visualization of your success.
In fact, saving money for security deposit is a short-term process. It requires a concentration, not the permanent change in your lifestyle. You are not getting rid of something forever. It is just a temporary investment into your future freedom.
It may seem hard for some time. You may have to refuse from a dinner with friends. However, when you hand the check to your landlord and get the keys, you will understand that all sacrifices were worth it. You can do it!