Budgeting is a smart move when you’re planning on renting your first apartment. It helps you find a place that fits your needs and still leaves you with enough money to pay for monthly expenses, including Internet, utilities, food, and entertainment. To help you find the right home, here are a few steps to take to determine your budget.

3 Budgeting Tips for Apartment Living

1. Calculate Your Income & Monthly Expenses

Evaluate the amount of money you have coming into the bank every month. This includes paychecks from full- or part-time work, cash gifts, support from family, and any compensation for odd jobs.

Figure out how much you owe for rent (expecting a higher value to account for utilities) each month and divide that number by your monthly income. This will reveal the percentage of income you’d spend solely on housing. Some experts recommend spending no more than 30% on rent and utilities.

2. Look Into Renter’s Insurance

This type of insurance will compensate you for theft or damage to your belongings.

You can gather different quotes from agencies in your area to determine whether this is an investment you want to make. If you drive, an easy way to reduce monthly payments is to combine this coverage with your car insurance.

3. Set the Security Deposit Aside

Make sure you have enough to cover the security deposit. This is typically the equivalent of one or two months worth of rent, depending on the landlord.

This is paid upfront and acts as assurance that the apartment will remain in good condition. You can expect a full refund upon completion of the contract. However, if there’s any damage, a portion of the money may go toward repairs.

Find your next apartment by reaching out to Executive Estates Apartments in Fairbanks, AK. This low-income housing complex features an assortment of apartments with up to three bedrooms. Each one features quality appliances, onsite laundry facilities, and regular snow removal. File your application today on their website or call (907) 479-3655 to request a tour.