Budgeting for an Apartment

Budgeting for an Apartment


One of the first steps in finding an apartment
is determining how much you are able to spend. This budgeting process is important because
it prevents you from entering into a living situation you cannot pay for. This video goes into some of the details of
how to budget for an apartment: First, Set the monthly amount you would like
to pay for rent (it should be between 23 – 25% Take home pay: Gross pay minus taxes)
Next, Set your monthly utilities budget: 10% of take home pay
Add those two together and you have your Total monthly rent expense budget which is equal
to between 33-35% of your take home pay Let’s walk through an example of this budgeting
process: Say you have a take home pay of $2,000
If rent is supposed to be 23%-25% of your take home pay, you are able to spend $640/mo
on rent If utilities are supposed to be 10% of your
take home pay, you are able to spend $40 Adding those two together, you are able to
spend $680 on rent and utilities combined, equalling out to 34% of your monthly take
home pay. While rent and utilities represent a significant
portion of your monthly expenses, they aren’t the only expenses you will have when you move
into your new apartment. Because of this, you also need to budget for
other expenditures such as: Furniture for the apartment/house Food for you to eat Any fee’s or expenses associated with pets And alittle cushion for any Unexpected expenses Housing4Hoosiers is a service of South Central
Indiana Housing Opportunities. SCIHO is dedicated to expanding housing options
for low- and moderate-income households in South Central Indiana

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