{"id":3444,"date":"2023-12-09T10:00:29","date_gmt":"2023-12-09T15:00:29","guid":{"rendered":"https:\/\/rentals.ca\/blog\/?p=3444"},"modified":"2023-12-09T10:02:30","modified_gmt":"2023-12-09T15:02:30","slug":"how-to-budget-while-renting-your-first-apartment","status":"publish","type":"post","link":"https:\/\/rentals.ca\/blog\/how-to-budget-while-renting-your-first-apartment","title":{"rendered":"How To Budget While Renting Your First Apartment"},"content":{"rendered":"

When moving into your first apartment, your pockets may be feeling a bit empty. Between rent, utilities, furniture and other expenses, logging into your banking app becomes a whole lot scarier. With this blog, we will teach you the best tips for budgeting and how to save money for future expenses while still paying your rent.<\/span><\/p>\n

 <\/p>\n

Determine a Budget<\/b><\/h3>\n

Before you can begin budgeting, it is important to analyze your monthly income and expenses to determine an appropriate budget. By doing this, you will be able to limit any unnecessary expenses \u2013 such as subscription plans, dining out and impulse purchases \u2013 and create an achievable savings plan.<\/span><\/p>\n

 <\/p>\n

Set Priorities and Track Your Spendings<\/b><\/h3>\n

Everyone has different priorities depending on their lifestyle, so organize your expenses into categories and rank them. Some category examples include groceries, transportation, insurance, entertainment, eating out and housing-related expenses \u2013 like rent, utilities and amenities. Make sure to determine which groups are essential and non-essential and give more weight to those that fall in the first list.<\/span><\/p>\n

 <\/p>\n

Lower Rent Expenses<\/b><\/h3>\n

With rent rising, it can feel overwhelming to make monthly payments and maintain financial stability. In reality, rent should not exceed 30% of your monthly income. If this is the case, consider looking for less expensive apartments in different neighbourhoods. Ideally, you will find a new place that is affordable and in good proximity to your location of work and other amenities while still aligning with your lifestyle preferences. If moving is not an option for you, consider looking for roommates. They will help reduce rental costs, which will make saving easier. Also, consider negotiating a lower rent with your landlord. This can be most effective if you have good credit.<\/span><\/p>\n

 <\/p>\n

Open a Dedicated Savings Account for Future Goals<\/b><\/h3>\n

It is always a good idea to save for future, bigger expenses like a car or a vacation. Separating these savings from your regular accounts will help track your progress. Opening up a <\/span>high-interest savings account<\/span><\/a> (HISA) will help you fast-track your savings and reward you with additional funds in the process. Another option is a <\/span>Tax-Free Savings Account<\/span><\/a> as you can invest your money tax-free. Set up automatic deposits into those accounts to hold yourself accountable and deter yourself from spending that money on non-essential items. Treat these deposits as non-negotiable. You can also take any unexpected money \u2013 like bonuses or tax refunds \u2013 and put them directly into your savings account.<\/span><\/p>\n

 <\/p>\n

Set Aside an Emergency Fund<\/b><\/h3>\n

Tragedy can happen unexpectedly and will not allow your current budget to adapt immediately. It can range from car repairs to job loss to hospital visits for you, your family or your pet. For situations like these, it is important to have an emergency fund. It can save you from going into debt and avoiding high-cost loans, instead allowing for peace of mind. Treat this as another savings account and make additional micro-payments to it each paycheque. <\/span>It is ideal to save up around 3 to 6 months of your income or the equivalent of your regular expenses during that same time period<\/span><\/a>.<\/span><\/p>\n

 <\/p>\n

Review and Adjust<\/b><\/h3>\n

At the end of each month, assess your budget. Determine areas where money was tight or where there were excess funds. Continue to review and revamp your budget until you feel that each aspect of your life is getting adequate funding without overspending.<\/span><\/p>\n

 <\/p>\n