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Calculate Your Month Budget for your Apartment Home

By Edited Jun 6, 2015 0 1

Calculating your monthly rental budget is extremely important, especially if you hope to be approved. And you will want to be comfortable paying that rental amount on the first of each month. If you have not yet figured out what you can afford, now is a good time as any to estimate a budget that will make sense. There are some rules that everyone can apply, in order to make this a bit more comfortable for yourself.

Remember, your apartment monthly rental amount will be one of your higher monthly expenses. So it would make no sense to have a luxury apartment home that you could not afford to furnish. And if you really try and stretch out your finances, this can cause trouble in other parts of your life. You probably have credit cards or other financial responsibilities each month. If you find yourself in over your head, not being able to pay your monthly rent may cause you to break your lease.

Before you begin your apartment search make a list of your monthly expenses. Use a computer program like excel to assist you. Start by adding up costs that you must pay for each month. A car payment and a cell phone bill are considered monthly fixed expenses..

Fixed Expenses

To begin with, your rent probably should not amount to more than 25% of your income. As you will find out apartments will require that you make anywhere between 2.5 - 3.5 times the monthly rent. That last thing they want to do is have a client you has to be evicted. Everyone loses in that scenario. Here are some examples of some other fixed costs you may have.

Insurance costs for your car and medical insurance. Or if you purchased furniture on credit, this would be another example of monthly payments that you would be responsible for.

Variable Expenses

These types of expenses will change from month to month. Your credit card payments each month will fluctuate. Do you have any legal expenses? These are things that can fluctuate from month to month and are not a constant figure.

When you go apartment hunting remember you will have to have money to pay upfront including deposits and application fees. Security deposits can range upwards of several hundred dollars.

Good luck apartment hunting.



Jul 26, 2010 12:32pm
Knowing your rental budget definitely helps you pay the bills on time, and can also help with your overall saving ability!
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