MY MEDALLION
Moving out of your parents’ home for the first time is an exciting and adventurous time in your life. Before excitement takes over, however, an important financial factor to consider is whether or not you have enough money set aside to get you started. Here are some tips on how to save for your first and last month’s’ rent.
Set a Limit for Yourself
The anticipation of moving out and being on your own may be cause for temptation to rent the most expensive apartment available in your area. Before you even consider renting, plan ahead and set a limit for yourself. If first and last month’s rent costs more than your income, you may find yourself in financial trouble. According to MoneyMatters.com, it is wise to budget for an apartment that is 30% or less than your gross income. This increases the likelihood that you will be able to afford first and last month’s rent, and stay within your budget.
Set Aside Some Money
A fantastic and simple way to save money for your first and last month’s rent is to open a separate savings account, specifically for that purpose. Myfirstapartment.com suggests that opening a separate savings account knowing that it is for one purpose only is a great motivator for making the funds grow. If you would rather not open an account, saving money in a piggy bank is also an option. According to budgetingthenest.com, because there are no service fees on a piggy bank, the money can add up faster than you might anticipate.
Increase Your Income
Regardless of whether it is taking on extra jobs, or working more hours, finding ways to increase your income can accelerate the process of saving for first and last month’s rent. Many jobs such as baristas, gym receptionists, and retail positions offer part time options and are flexible with scheduling to allow you to work specific shifts when you are available. Myfirstapartment.com has a convenient list of many positions that are ideal for bringing in a bit of extra money.
Stay in For Dinner
Although the temptation on a Friday night might be to join all of your friends for an evening out, a great way to save some money for first and last month’s rent is to stay in instead. An article in the Globe and Mail found that the average Canadian spends approximately $184.00 per month eating out. Multiplied by 12 months in a year, that is $2208.00 per year. So before heading out for that Friday night out with your friends, consider the apartment you could afford if you set that money aside instead.
Limit Your Spending
Humans are creatures of habit, and often one of those habits is spending money on items that are not really essential in our lives. If you are saving for first and last month’s rent, consider cutting the amount you spend. Set a goal for yourself that fits within your budget, and set aside what you don’t spend. Instead of purchasing your morning coffee, opt for coffee at home. The Huffington Post found that spending an average of $2.75 per day on coffee can add up to a total of $1300.00 per year. Setting this amount aside will accelerate the process of saving for your first and last month’s rent.
Following these tips will help you save for your first and last month’s rent, and will allow you to comfortably move into your new apartment without financial stress. For more information on saving for first and last month’s rent, visit the Medallion Homes Blog.
