Every 20-something dreams of the empowering feeling of renting their own apartment. While the prospect of moving out may seem daunting, it’s a significant step toward personal growth and responsibility. With your own place, you gain control over your bills and rent, marking a new level of financial independence.
Before you move the first box into your new apartment, it’s going to cost you money. Substantial expenses need to be paid upfront. At a minimum, you will need to cover the security deposit, first and last month’s rent, application costs, and broker’s fees.
While the idea of saving for your own place may seem overwhelming, it’s a journey that puts you in control of your financial future. With careful money management and discipline, you can make your dream of renting your own place a reality.
Do your sums and be realistic
It is great to be optimistic, but you also need to be realistic. Before you start looking at apartments, you need to sit down with a calculator and make sure that with your income and expenses, you can actually afford to move out. 30% of your gross income is a good starting point to determine the amount of rent you can realistically pay.
However, living in your own apartment is not just about being able to afford the monthly rent. You also need to budget for utilities, food, cleaning supplies, and toiletries and then add a little bit extra for unforeseen expenses. Only if the numbers balance can you take the next step toward finding your own place.
Identify where your money is going
Once you know what you’re in for in terms of costs, you can work towards your saving goal. The first thing to do is draw up a monthly budget. You will quickly be able to see what you’re spending your income on. You can then use the information to identify places to cut costs and save. This could be walking to work instead of taking the bus, eating at home rather than going out, or jogging in the park in place of an exercise class or gym membership.
Redefine your wants and needs
We live in a consumer-driven society and are constantly bombarded by advertising for things we want but don’t necessarily need. If you’re going to save money, you have to separate your wants from your needs. Just because you want designer clothes doesn’t mean you need them. You might need a car to get to work, but it doesn’t have to be a luxury vehicle; it just needs to be reliable.
You often buy items regularly because you think you need them, but when you redefine your needs, you’ll discover some items are luxuries. Sure, they make your life more comfortable, but you can live without them, especially if it helps you reach your saving goal sooner. Review your budget critically and identify items you can do without or replace with less expensive alternatives.
There is nothing wrong with treating yourself to the odd luxury or an occasional night out. Small rewards can keep you motivated and focused on your ultimate goal.
Make the most of technology and use a good budgeting app
Sticking to a budget is always challenging. It takes patience, determination, and discipline. If budgeting is not a concept you’re familiar with or you find it hard, use technology to help you stay focused on your goal. There are literally hundreds of apps that you can use to track your income, expenses, and savings. Choose an app that enables you to set your savings goals and highlights areas where you can cut costs.
Be on the lookout for passive savings
Saving is not just about spending your money wisely and buying less. You also need to look for passive saving opportunities. These are places where you can save money without actively cutting back or making substantial changes to your lifestyle. For instance, reducing your fixed expenses like cable subscriptions or gym memberships, or paying off small high-interest debts and credit cards will give you more money in your pocket every month.
Learn to cook and eat smart
Be prepared to sacrifice the sushi. Who doesn’t love takeout? It’s quick, easy, and convenient, but if you want to save money, you need to learn to cook for yourself and be smart about it.
Batch cooking is one way to save on electricity and dishes. It will also give you something to warm up on the nights you don’t want to cook, or you can take the leftovers to work. When you shop for food, always watch for specials and bulk savings deals, especially on non-perishable products.
Don’t think of cooking at home as a chore. Turn it into a fun activity with family and friends. Experiment, try new recipes, and look for clever, cost-cutting recipes and ideas. Countless videos and internet sites will teach you how to cook and give you tips on saving money by cooking at home.
Declutter and sell things you don’t need anymore
Everyone has things they don’t need or use, but there is always someone out there looking for the things you no longer want. Go through your cupboards with a critical eye and look for gently used clothes, electronics, and appliances you don’t need. You can sell these items online or at your local resale store to make some quick extra cash.
Look for ways to earn extra money
Everybody these days has a side hustle, and there are plenty of opportunities out there to earn a bit of extra cash. If you can’t make your budget work and you can’t find enough places to save money, you need to look for opportunities to make money. Sign up for freelance work online or apply for a second job.
Keep your goals realistic
Setting and achieving realistic goals is a powerful tool for personal growth. It’s not just about wishing for an apartment of your own but about taking the necessary steps to make it a reality. Each step you take towards your goal is a step towards a more independent future.
When you set your goals, you need to build in some leeway. You can’t set a goal to save 50% of your income if your basic expenses are 50% of what you earn. Be realistic. You will always need a bit extra for unforeseen expenses. And if you consistently fail to meet your goal, you will quickly become disillusioned and give up on your saving plan. It is better to set your goal at 30%; anything above that you save will be a bonus.
When looking for an apartment to rent, be realistic about what you can afford, and don’t waste time looking at places outside your budget. It’s good to dream, but chances are your first rental apartment will not live up to those expectations.
Saving is not easy—it takes time, discipline, and commitment. You have to be prepared to do the hard work, but if you set realistic goals and stick to your savings plan, you can afford to rent a place of your own and have the freedom that comes with it.
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