Want affordable apartment living tips that help you save money… Without sacrificing what’s important?
If you’re like most renters then you want your monthly dollar to stretch as far as possible. Because the less money you stress about…the more you have for fun things in life.
But here’s the problem with trying to live on a budget:
Most renters struggle to know where to save money and where to spend. They end up spending too much on nonsense things…While skimping on what actually matters.
That’s why this article is different. You’ll discover the best budgeting tips for apartment living. Ideas that can actually save you money every single month.
Let’s dive in…
What’s inside:
- The REAL Cost of Apartment Living
- Areas of Your Budget You Should SAVE
- Areas of Your Budget You Should SPEND
- Why You Need Personal Belongings Coverage
- Budgeting Tips for Apartment Living That Actually Work
The REAL Cost of Apartment Living
Before talking about saving money. It helps to understand exactly where your money is going.
Truth is, most renters are shocked at how much they spend each month.
In fact, data from the U.S. Census Bureau show that 48.2% of renters spend over 30% of their income on rent and utilities. HALF OF American renter households are spending too much money on housing.
And rent isn’t the only monthly expense. Add groceries, transportation, renter’s insurance, streaming services, eating out and furniture… Suddenly your budget is stretched pretty thin.
One line-item most renters overlook is personal belongings coverage on their renters insurance policy. Most renters don’t even realize renters insurance exists. Yet finding the cheapest renters insurance with personal belongings coverage can cost as little as $15 per month.
The key to creating a budget for apartment living is understanding where your money goes. Once you see where your dollars are leaking away, you can start to make better choices about where to save.
Areas of Your Budget You Should SAVE
Honestly there’s only one rule:
If it won’t impact your quality of life… You can cut your budget to absolute zero.
And here are some examples:
Furniture & Apartment Decor
Ok, so maybe your budget can’t hit zero on this one. But you definitely don’t need all new furniture.
Did you know that starting from scratch can cost thousands of dollars? New couches, tables, dining sets, lamps… Before you know it your furniture budget is out of control.
The simplest way to save money? Used furniture!
Second hand shops, thrift stores, Craigslist and even garage sales are perfect for cheap furniture. With a little patience, you could furnish your entire apartment for less than $500.
You don’t need new or expensive. You just need it to not fall apart.
Monthly Subscriptions & Memberships
Fun fact: Renters tend to pay for things they don’t use.
Subscription boxes, streaming services, gym memberships, magazines… The list goes on. And while $5 here or $10 there isn’t much. It all adds up fast.
Go through every subscription you pay for and cut anything you haven’t used in the last 30 days. That money is better served being spent elsewhere.
Groceries (and Eating Out Less)
Groceries are one area where you have to spend money. Eating out isn’t.
There’s no cheaper way to eat than cooking at home. But that doesn’t mean you have to eat boring meals or spend hours in the kitchen either.
Meal planning and buying groceries in bulk are two great ways to eat healthy without spending your entire paycheck. And when you cook at home more often, all those cheap takeout and delivery bills add up to big savings.
Areas of Your Budget You Should SPEND
Of course, you should always look for ways to trim the fat in your budget. But that doesn’t mean you should skimp everywhere.
Here are some important areas where spending money now can save you money later.
Good Bedding & Mattress
Everything is better with a good night’s sleep.
Whether it’s your mood, energy levels or overall health. Sleep affects every part of your life. That’s why having a good mattress and bedding is so important.
Yes, you can survive on a ragged old mattress. But it will drain your sleep and make your days more difficult. Sleep better so you can enjoy your apartment to the fullest.
Personal Belongings Coverage
Think about everything you own that’s inside your apartment.
Phones, laptops, tablets, furniture, clothing… Everything. All of your possessions inside your home are at risk if something happens. And without renters insurance with personal property coverage, you’re taking that risk.
You might be thinking, “Renters insurance has to cost a lot.”
It doesn’t.
In fact, the average renters insurance policy is between $15 and $20 a month. That’s cheaper than one month of that trendy new meal-kit subscription.
Yet a survey conducted by The Zebra showed that only 37% of renters actually HAVE renters insurance.
Don’t be that person. Spend a little money and protect your stuff.
Good Security (Locks, Cameras, etc.)
Similar to the above point, you shouldn’t cheap out on apartment security.
Do you have a good deadbolt installed on your door? Have you looked into a doorbell camera or other DIY alarm systems?
While you can never be 100% guaranteed that your apartment won’t be broken into. You can take cheap measures to ensure that it’s difficult for a break-in to happen.
Look into some of these simple DIY apartment security tips and save yourself a lot of stress.
Budgeting Tips for Apartment Living That Actually Work
Ok, so you know some areas where you SHOULD save. And areas where you SHOULD spend.
Now it’s time to look at budgeting for apartments in a bigger picture. Some practical tips and advice to keep more money in your pocket.
Follow the 50/30/20 Budgeting Rule
Half your income should go towards needs. Things like rent, utilities, insurance and groceries.
30% of your income can be spent on wants. Dining out, subscription services, hobbies… Fun stuff that doesn’t necessarily have to be paid for.
The final 20% of your income should be going towards savings and debt repayments.
Obviously everyone’s situation is different. And some rents might cost more than 50%. But if you’re strictly budgeting for apartment living, this is a great rule of thumb.
Try Negotiating Your Rent
Your rent is likely the largest chunk of your monthly budget. And if you can knock even $25 per month off your rent… That’s $300 saved per year.
Seriously. Just ask.
Most people never try negotiating their rent and end up paying more than they should. Landlords would much rather offer you a small discount than have your apartment sit empty.
Get a Roommate
This tip shouldn’t come as a shock. But if you can find a reliable roommate, you can literally cut your living expenses in half.
Splitting the rent, utilities and even food costs with another person is by-far one of the easiest ways to live cheap in an apartment.
Plus, two people can always rent a nicer place than one person, right?
Bundle Insurance & Utilities
Believe it or not, but you may be able to save money on certain home services by bundling them together.
Streaming services, internet providers and even renters insurance will often give you a discount if you bundle them with things you already have.
Renters Insurance can typically be bundled with your car insurance to save you money. Save money on home security by getting an internet package that includes smart home monitoring.
Look into bundling your home bills and you might be surprised how much money you can save.
The Bottom Line
So there you have it. Budgeting tips to make apartment living more affordable.
To quickly recap:
Save
- Don’t buy all new furniture
- Cancel subscriptions you don’t use
- Eat cheap eats at home more often
Spend
- On a good mattress and bedding
- Personal Belongings Coverage on your renters insurance
- Good apartment security
Every Other Budget Tip
- Use the 50/30/20 budgeting rule
- Negotiate your rent
- Get a roommate
- Bundle home services when you can
Living in an apartment shouldn’t break the bank. And by following the above budget tips, you’ll be on your way to saving money in no-time.
Instead of struggling to make ends meet every month… You’ll enjoy living in your apartment again.
