Walking into your first or next apartment rental, you’ve got to have your first and last month’s deposit, possibly a security deposit, the deposits you will need for utility bills and any other installations that have to happen, and furniture, food, and anything else you’ll need in the first weeks of living there.
You can get apartments for rent at great prices if you learn to be intelligent with your money. Here is how to save for an apartment rental so that you can cover all of it:
1. Work On Your Credit Score
Another note on borrowing is to work on your credit score. Pay down debt. Pay off credit cards. Eliminate any loans, to the best of your abilities. Credit history matters. A lot. If you walk into an apartment rental ready, willing, and with cash in-hand but your credit score isn’t solid, don’t be surprised if you don’t close the deal.
2. Work Hard to Make Money
Saving for an apartment rental isn’t something you do on part-time income. Find full-time employment with a steady paycheque. If there’s overtime available and it’s not going to crunch your mental health to do it, sign up for a shift here and there. An extra shift every week or two adds up.
If there isn’t more work available to you at your current job, look for a second. This can be something simple like a paper route or a side hustle you do on a night or two every week.
Numerous opportunities exist on how to make money quickly. Offer a service. Ask your friends. Grab something within walking distance to you. This aside, be sure to do right by your mental health. Know when it’s too much. Some people can’t do a second job and that’s ok too.
3. Consider a Roommate
By partnering up with one, two, or three roommates, you may be able to find a better-quality apartment rental with more amenities and more value, and with a lower cost-per-individual attached. So long as you’re fine living with someone else, by finding a roommate and a financially-responsible one at that, you decrease your month-to-month costs and your savings goal.
4. Save More Than What You Need
Something you will learn with any major purchase or investment – i.e. rent, mortgage, car, education – is to save more than what you need. It can be a shocking number what you’ll need to save for an apartment rental in some places in Canada.
That said, spending an extra one or two months saving will give you a little extra to cover unexpected costs or budgeted expenses are slightly more than expected.
5. Budget Before, Budget After
To save for an apartment rental, create a budget. It’s basic and it’s straightforward but it’s necessary. Budget before leading up to your apartment rental. Budget after so that you aren’t bleeding money in those first few weeks.
This will help not only in saving but you can see your progress. If you are planning and aren’t saving, with a budget, you’ll know why and can make adjustments.
6. Reduce Monthly Expenses
Saving for an apartment rental is temporary in nature. The budget you create will only be for a time. With this in mind, look at what you can give up for a bit. Fast food and restaurants. TV. Groceries. Spend cheap, save well. The more you cut, the more you save.
Again, this isn’t permanent. It may be tough but there will come an end to it. You also may find out certain expenditures you don’t need in the long run.
7. Sell Items You Don’t Need
Add to your apartment rental savings by selling furniture, instruments, or things you don’t need. Although this isn’t sustainable as a budget strategy, it can get you extra money to put in the piggybank. Take an honest look at your things.
Anything you don’t need, if it’s worth something, sell it online via classified ads a la Kijiji or Facebook Marketplace. With a little patience, you can sell almost anything.
8. Know What You Can Afford
Search affordable apartment rentals within your price range. Do not commit to paying rent outside of your price range. An ideal range three times your income. So if you make $2,000 monthly, your rent will be in the $600-$700 range. Evidently, not everyone follows this rule.
Unfortunately, those that don’t either find themselves in one of two situations – unable to pay rent consistently or they aren’t able to spend money on the things they love because they’re permanently tied up with paying down the essentials every month.
9. Save Money Instead of Borrowing
One of the best ways on how to save for an apartment rental is to limit your borrowing. It does not involve borrowing from family or friends, taking out a loan, or using credit. Having to borrow for your apartment rental is not the way you want to start out.
Find opportunities to save, even if it takes longer to do so, and know that you don’t owe anyone anything at least as it relates to setting yourself up in a rental.