After graduating college, I crashed on my grandmother’scouch for about 3 and a half years. I contributed about $300 a month to hermonthly expenses. I enjoyed having alarge portion of my salary as disposable income. My grandmother enjoyed havingextra money to travel and see Broadway shows.It was a good situation for both of us, but I knew eventually I wantedmy own place. Once I moved out, I wanted to make sure I saved enough money to handlemy monthly expenses as well as any unexpected expenses that may come up.
How much do I need to save before moving out?
Before moving out you will need to save enough money tocover your security deposit, first month’s rent and basic furniture. Before Imoved out of my grandmother’s apartment, I needed $7500 to cover those expenses.These expenses could be higher or lower depending on the cost of living in yourarea and whether you decide to purchase new or used furniture.
Before you move out you need to consider savings for yourupfront cost. You will also need to consider your income to cover your monthlyexpenses.
When I moved out, I had enough to cover all of the upfrontexpenses as well as a 3 months of emergency savings. When I moved out, I livedcomfortably and was able to put a portion of my income toward savings.
Setting Up a Monthly Budget
| Car Payment | $440 |
| Car insurance | $250 |
| Rent | $1200 |
| Internet | $100 |
| Cell Phone | $100 |
| Debt Payments | $350 |
| Gas | $50 |
| Groceries | $0 |
| $2490 |
Determining your Monthly Rent Payment
How do I get my first apartment?
Before beginning your apartment search, you need todetermine how much apartment you can afford. The general recommendation is notto spend more than 1/3rd of your monthly income on rent. So, if yourmonthly income is $3000, the recommendation is to spend no more than $1000 onrent. The real estate website Zillow has anaffordability calculator to help you determine how much rent you can afford.
I recently wrote a post describing how to find your firstapartment and navigate the application for your first apartment. That post canbe found on our site by clicking here.
In order to get your first apartment, you will have todetermine how much apartment you can afford.
If you plan to move into a rental, you will need to pay asecurity deposit. For my rental this was one and a half month’s rent. Since my rent was $1200, my security depositwas $1800.
Budgeting for Monthly Transportation
A monthly budget includes some form of transportation. If youlive in a large metro area this may include the cost of bus or train fare. Ifyou drive a car this will include car payment, insurance, gas, tolls, & anyparking fees. When I moved in to myfirst apartment, my transportation costs were high. Parking was included in myrent, but my car payment, insurance, and gascosts put my transportation budget at $700.
Grocery Budget for your New Apartment
The grocery budget for your new apartment will varydepending on how much you cook at home vs. how much you eat out. A good startingbudget for someone living alone is between $200-$300 per month. If you enjoygourmet food or purchase organic food than $400 would be a more liberal budgetfor groceries.
Debt Payments
If you are in the process of paying off student loans,personal loans, or credit card debt.These need to be considered as part of your monthly expenses.
Internet
Cable, Streaming Services etc. are optional. However, at aminimum I’ve found most people need internet to be comfortable in their newapartment.
Cellphone
When computing your monthly expenses, don’t forget to consideryour cell phone bill. A cell phone is a common recurring monthly expense.
Upfront Expenses for your New Apartment
Before I moved in to my new apartment, there were somethings that I saved for before moving into my apartment. These included itemssuch as security deposit, furniture and a television.
The table below describes my upfront costs for renting a onebed room apartment in New Jersey. I purchased my furniture new. These expensescan be reduced by purchasing some items used, or asking friends or relatives topurchase these items as gifts. If youdecide to finance furniture, this cost could also be lower if you choose to financefurniture and electronics.
| Security Deposit | $1800 |
| First Month | $1200 |
| Bedroom Furniture | $2000 |
| Living Room Furniture | $1500 |
| Electronics | $1500 |
| Application Fee | $50 |
| Minimum Savings | $7500 |
Furniture for your First Apartment
What Furniture do I need for my First Apartment?
When you first move in, at the bare minimum you will needsomeplace to sleep. Also, some living room furniture so that you have someplaceto spend time while you are awake. Asyou make your self more comfortable in your home, you can add additional furniture.For instance, you would eventually needa table and chairs, but you may find it easier to invest in a set of foldingtable trays, then to buy a dining set. This set of trays available on amazoncould be a good alternative to purchasing a dining set. amazon by clicking hereto see the current price.
| Bed Frame or Box Spring | |
| Mattress | |
| Dresser | |
| Night Stand | |
| Sofa Table | |
| Side Table |
How much does it cost to furnish your First Apartment?
I spent about $3500 to furnish my first apartment. Ipurchased a bedframe , a mattress, a dresser , a Sofa , a love seat and a storage ottoman when I first moved in to myfirst apartment. I purchased everythingnew from discount furniture stores.
I crashed on a couch at my grandmother’s place, so I neededto purchase a bedframe and a mattress. I wanted something that would last for awhile, that investment cost me about $800 and it paid off. In fact, 9 years later it is in my house as aguest bed.
Other items that you can add gradually as your budget allowsare a dining set, book shelf, computer desk & other storage solutions. Asyou get settled in your new apartment you will begin to fill it with accent furniturethat suits your lifestyle.
How Can I furnish my first apartment for cheap?
To furnish yourapartment for cheap, purchase used furniture.The internet makes it easier than ever to find used furniture inexcellent condition. I joined a local Facebook swap group and people often postfurniture in excellent used condition for very affordable prices. You can get agreat sofa for $100. I’ve even seen whole bedroom sets for as low as $250. You mayneed to hire movers, or rent a moving truck and enlist the help of friends, butyou can easily cut the cost of furnishing your apartment in half!
You may also choose to purchase the large items new, andpick up accent pieces that easily fit in your car from swap groups. You can browselocal swap groups or craigslist for accent tables, rugs, night stands, and artwork. You will be surprised at the quality you can these items for a greatprice!
The one thing I would buy new no matter what is a mattress.For sanitary reasons, this is the one item that is not worth the savings.
Cookware
The essentials are a skillet and a small saucepan, .
Bedding & Linens
Plan to purchase a set of sheets and a pillow for your firstnight in your new apartment. Two towelsand two wash cloths should be enough to get started. When family & friends found out I was movinginto a new apartment they would offer to purchase something as a house warminggift. Bedding and linens make an EXCELLENT housewarming gift. If someone asksif you need anything THIS can be a goodanswer.
