| by Kenneth Chase | 72 comments

How to Budget for an Apartment


Hi, it’s LaTisha from YoungFinances.com. Today,
we’re talking about how to budget for an apartment. So if you’re thinking about moving out and
you’re trying to figure out if you can get your own place, then it’s time to set up a
budget. And I always say, “Set up a budget,” but your budget changes. It changes as you
change and especially when you make new decisions and you decide to do some new things with
your life, like move into an apartment. So when I decided to get my first apartment,
I knew there were a couple of things that I was going to need, namely all the little
things that go into an apartment, like furniture, like tables and chairs I guess because people
have to sit somewhere. And then I also wanted plants. All of these things you’re going to
need to remember to budget for. So I’m going to help you budget for an apartment, so you
can be ready to move out. Step one, set your monthly amount that you’d
like to pay for rent. If you make $1000 a month and you think you can afford $500 a
month, just stop. Your monthly rent expense should be no more than about 23% to 25% of
your take home pay. Not your gross pay, but what you exactly bring home each month. So
if you bring home $1000 a month, then 23% to 25% is $230 to $250. It seems like a small
amount, but you probably need to get a room mate or you probably need to wait until you’re
really ready to move out. Then, for your utilities, you’re going to
want to budget about 10% a month for utilities. So that’s going to bring your total housing
payment to about 33% to 35% a month. And that’s a really good place to be when you’re thinking
about renting a new place or moving out to an apartment. So when I got my first job,
I had a take home pay of just around 2000 or a little over 2000, and my first apartment
was $680. Actually, it was started out… it was $640 a month in rent, and then I had
about $40 more in utilities. So I was spending about $680 to live on my own, and I was able
to maintain that payment because I used that percentage rule. So keep that percentage rule
in mind. The next thing that you need to do is budget
for all of those little expenses and for all of your furniture and things like that. I
was on an all cash budget because I was in the process of paying off my credit card debt.
I couldn’t go to that place where black people and white people buy furniture… at the Red House! – and use credit. So I had to use all cash. I decided to go to IKEA because it was a great
place where I could get inexpensive furniture and kind of furnish the apartment. So I got
pieces a little bit at a time. I didn’t go out and furnish the entire apartment when
I first moved in because that would have increased my monthly expenses. So I set aside a little
bit of money each paycheck in each month in order to furnish my apartment. Then finally, set aside some cash just for
the little stuff, food that you’re going to be eating as soon as you move in and any of
these last-minute surprises. I had a gas bill that I had to pay from an old apartment I
didn’t even know I had that I had to pay that came $47 out of pocket. I had to make sure
that I had some extra cash saved up in order to take care of those expenses. So those are my tips on budgeting for an apartment.
Now that you live on your own, think of all the fun stuff you get to do. Meow. You could start your
own YouTube channel. From L.A. to Tokyo! Meow. Meow. I have an entire post on how I saved
up for moving and all of the little amounts that I saved up for and exactly what I spent
when I moved into my new apartment. So if you go to youngfinances.com, you can read
that post. I’ll put the link in the box below, and I’d also love for you to leave a comment
below. If you have any suggestions for people that are moving out, this video was requested
and so I really appreciate any suggestions. If you have ideas for our videos upcoming,
just let me know and I will get on it. In the meantime, subscribe because I’ve got new
videos coming out every Tuesday and be sure to hit the Like button and give it a thumbs-up
if you liked it. Thank you so much for watching, and I’ll see you guys next week. Bye.

72 Comments

Chelsea Sadler

Sep 9, 2014, 4:32 pm Reply

Thrift stores and used furniture from friends and family saved me when I first moved out. Heck, I still ask for stuff today and I'm married!

Romanita Hughes

Sep 9, 2014, 5:27 pm Reply

Thanks for sharing your great advice. 

Coffee & the Classroom

Sep 9, 2014, 8:58 pm Reply

yay!!

LaTisha Styles

Oct 10, 2014, 2:27 pm Reply

VIDEO: How to Budget for an Apartment http://bit.ly/1tdwulO

Lucy

Oct 10, 2014, 7:49 am Reply

thank you 🙂 I already knew how to budget but I wanted to find some more advice on it' I'm not a shop-A-Holic Lol but I wanted to know more about how I can pocket more money while living on my own. I am thinking of getting a 2bdrm so I can rent the other one to my sister we can split the cost and stuff 🙂 Thanks again

lalathaqueen100

Dec 12, 2014, 10:27 am Reply

10% on utilities, and a $47 gas bill, Thats fairytale for me, I dont think i have ever seen a $47 gas bill in my life, Great video

purple sassy

Dec 12, 2014, 3:21 pm Reply

Good advice 

Jonica Brown

Feb 2, 2015, 4:16 am Reply

This was such an amazingly awesome video. Very concise and accurate. I'm glad I across your channel. Happy New Subscriber!!!

Casady Grace

Feb 2, 2015, 10:49 pm Reply

This was so helpful. Your videos are so awesome. Thank  you!

Toni Tone

Mar 3, 2015, 5:59 pm Reply

i love your videos! very wise and awesome advice. I just wanted to let you know how pretty you are and how much you remind me of a little bit older Makeupdoll aka Keisha who I have been watching for years

Shawn Afshar

Mar 3, 2015, 2:59 am Reply

You need to earn at least $33 an hour — $68,640 a year — to be able to afford the average apartment in Los Angeles County absolutely insane how's a recent college grade supposed to afford that !

GT: COSMO RED STARS

Mar 3, 2015, 5:43 am Reply

Good looking sisteR!

AllSides on SunnySide AKA ODDGOD

Apr 4, 2015, 7:38 pm Reply

you are so hot

Send A Revival

Apr 4, 2015, 1:36 pm Reply

Thank you so much for these tips cause a sista needs help hahaha!

L A

Apr 4, 2015, 3:44 am Reply

@Young Finances I really like this video and have a question for you. How can you determine a percentage for a apartment for a position you have not started working yet? Ex.
I will be relocating for a job,it is Full-time and I have a set pay rate for the purpose of my question I will give you the pay rate. It is $14,an hour and I was told by my hiring agent FT was at least 37 hours a week. I figured I'll work at least 40. I am looking for an apartment and the percentage you gave is soo helpful but can you help me on further advice. P.S I have also looked at your article, I'm going go through your list and budget for myself. Thank you, I look forward to following all your tips and advice on your channel,I am a new subbie!

acajudi100

Jun 6, 2015, 12:41 am Reply

Teach!

Jackie Chann

Jun 6, 2015, 3:32 am Reply

I love your video and how it elaborates on budgeting. Im offered a job away from home and calculating the expenses for an apartment as a person out of college is terrifying. I feel I can make smart decisions regarding relocating so I wont be in a big hole financially.

Sasu123456789x1

Jun 6, 2015, 11:27 pm Reply

This totally helps

Nicole Pickett

Jun 6, 2015, 1:15 pm Reply

The whole 20-25% a month rent thing is so unrealistic for university students though which is so sad

Francisca Ugalde

Jul 7, 2015, 8:56 pm Reply

thanks for the tips, I'm starting to plan for my first place out of my parent's house and this is so useful 🙂

Gloria Fox

Aug 8, 2015, 4:31 pm Reply

Where are you from? Because I would like to know who the hell pays $230 for an apartment?

Devin

Aug 8, 2015, 12:57 am Reply

great video

Christina Jackson

Sep 9, 2015, 2:20 am Reply

This was super helpful. Thank you!

keith wisdom

Sep 9, 2015, 2:25 pm Reply

it's important to live the minimalist lifestyle when on limited budget and renting….. should only buy the essentials like reasonable bed, table, few chairs, etc. you want the flexibility if you decide to move after a year or two…. if you have a lot of stuff it will be costly to move and you may have to put stuff in storage or have to get a larger place which will cost more money. plus you save money when you only get what's really necessary. until you start making big buck and settle into a perm spot; then you can buy some solid furniture. my opinion

John Mayfield

Sep 9, 2015, 6:41 pm Reply

Thanks, great video! I'm going to share this through an online class I am building for high school students about how to buy, sell and rent real estate! 🙂

deluilah547

Sep 9, 2015, 9:28 am Reply

Yes love it it hard for me

Olivia Bellard

Nov 11, 2015, 1:00 am Reply

Also, a word to the wise, if you plan to live by yourself in a major city, like New York, budget for 40-60% of your income on rent. It that is too high, you WILL need roomates. Trust me!

fairyQueen192

Nov 11, 2015, 3:36 pm Reply

That 35% would be $700. Aint no way in hell you can find that price for rent in my area. Decent rent around here is 1200-1400$.

KwayyyTV

Nov 11, 2015, 9:08 pm Reply

thanks and I subed helped out a lot. I got 2 comfortable living at home. I am trying fix credit situation. this does helps out a lot thank you.

Kailey Pom

Nov 11, 2015, 3:16 pm Reply

Thanks for your tips!
I recently just moved out to my very first place. I will keep all of this in mind! Very helpful

Multi Millionaire

Dec 12, 2015, 6:13 pm Reply

If anybody wants to live for cheap in a decent neighborhood, move to Arizona. Your just going to have to deal with the hot wheather.

Kerone Rascoe

Dec 12, 2015, 1:37 am Reply

cool

Shay Mais

Dec 12, 2015, 9:01 am Reply

Great video. I really enjoyed how practical your tips were and I will definitely keep that percentage concept in mind when apartment hunting. Thank you dearly !

Ratoftheswamp

Jan 1, 2016, 2:02 am Reply

I want to move to la with my friend. so should we get jobs in la then get an apartment or get an apartment then get jobs?

Maddie Moore

Jan 1, 2016, 7:36 pm Reply

living in san diego the one bedroom I'm going to rent is 1,100 LMFAO crying

casey sade

Jan 1, 2016, 8:33 pm Reply

I'm in the process of moving for the first time myself. one thing I did that really helped me was I got a big bin and just started buying little things here and there so I wouldn't be so strapped for cash and overwhelmed when I moved.

Miss desire Independance

Jan 1, 2016, 6:37 am Reply

Great video but no one straight out of college wants a roommate lol. Its best to get a second job or start your own business.

Destiny Alexander

Feb 2, 2016, 4:31 am Reply

You rock thanks

Ruthella B-Rey

Feb 2, 2016, 12:11 am Reply

I wish I can pay that for rent.. where I live its around $1000 – $1500 for a 1bedroom apartment!

Raque Recife

Mar 3, 2016, 1:24 am Reply

Well i make $1200 a month and pay $795 for a small studio apartment and a dog but i live in Chicago do i dont need a car which saves some money, untill i graduate. But everyone is different.

Life Of A Virgo

Mar 3, 2016, 5:10 pm Reply

just found this. i need advice. i make roughly 1200 each month. so would 550 be to much?? water would be 30 where im moving an lights is seperate. this would be my first place.

Lexiee Danielle

Mar 3, 2016, 5:27 am Reply

I am a senior in high school and I am about to start college fall of 2016 but this summer I am moving to be closer to my university. I will be moving with two people but I am really scared because I don't know how to budget money and I was wondering if you have any advice you could give me ?

Norangelis

Apr 4, 2016, 3:20 am Reply

I was all about the video until the "black and white people" buy furniture comment. Oy vay. Not needed. Moving on.

Sarah wilson

Apr 4, 2016, 9:43 pm Reply

Thank you, thank you so very much for this video! It helped a lot!

Yesenia Hernandez Becerra

Apr 4, 2016, 8:45 am Reply

What kind of job do you have that is best suitable for being able to have your own apartment? Or what kind of job should I look for to be able to hold an apt for myself?

Ninja_goals

Apr 4, 2016, 10:34 pm Reply

Omg Rhett and Link!! Thanks for the advice :3

RoxNotKiddo

May 5, 2016, 2:55 pm Reply

Flips out when I saw Rhett and Link

KristynVlogs

May 5, 2016, 3:56 am Reply

that blue color is beautiful on you! great video

KristynVlogs

May 5, 2016, 4:02 am Reply

you can find cheap stuff on Wayfair sometimes too..they ship for free too!

Tanna_banana

Aug 8, 2016, 5:17 am Reply

Next video needs to be on how to land a decent job/career that's willing to actually pay good and offer bonuses! Everyone can't have a roommate especially if they have children even one child. Think about it nowadays daycare expenses need to be added in along with rent, car payment, insurance (medical and rental) utilities, groceries, gas and God forbid if you have student loans, credit cards or any other fees ….. Life is hard after high school trust and believe…..I'm just venting excuse me lol

loren bass

Nov 11, 2016, 1:06 pm Reply

thanks so much, needed this

Ashley Wilcox

Jan 1, 2017, 9:01 pm Reply

This was very helpful thank you 🙂

gina graziano

Feb 2, 2017, 1:03 am Reply

like your advice and realistic is key have a studio apt. and grateful it is in a range I can easily afford and furnished it with nice things by upgrading little at a time.

VaehAndA

Mar 3, 2017, 7:21 am Reply

where did u live!!! … rent in LA starts at 850 (for a run down studio in the hood)…. ? I'm moving to vegas

Dee dee

Mar 3, 2017, 8:20 pm Reply

Thanks

CaveMane Productions CMP

Mar 3, 2017, 2:03 pm Reply

The 25% income rule for renting is false. I take home $150 per month so theres no way I can buy an apart ment for less than $50. U need to purchase money from ur parents so you can aford it.

Dede7again

Apr 4, 2017, 7:33 pm Reply

viola davis vibes

Noodle

Apr 4, 2017, 5:09 am Reply

you have earned my like and subscription ?

Pitchfork Matt

Apr 4, 2017, 5:33 am Reply

I live in Myrtle Beach SC, and the price of living is outrageous. Most live with their families. Which is a pain for many who want to break away.

Sebastian Sanfratello

Apr 4, 2017, 1:29 pm Reply

hi do you have anything up to date . all your videos are 2 years old or older. if you have some new ones that I may have missed please tell me where they are. thank you

The Triple Rider

May 5, 2017, 2:39 am Reply

I cringed at the end but good video still

mother abigail

Jun 6, 2017, 2:59 am Reply

NY is so expensive ??

ravenj Wells

Jul 7, 2017, 10:34 pm Reply

Great TIPS GIRL, thank you ?

katsygirl28

Jul 7, 2017, 7:55 pm Reply

Only 25% is easier said than done…even with a roommate, especially in cities..

Mystic Nightmares

Jul 7, 2017, 12:06 am Reply

The good mythical morning tho xDDDD

SUPERrrCHRIS

Aug 8, 2017, 11:36 pm Reply

This is not right I make 2140 a month and I can aford an aparment for 630 a month plus utility. People need to budget themselves. Is not hard.

Kayla C

Nov 11, 2017, 1:53 am Reply

An apartment in md on the cheap side is $1,200.

Manny Aguilar

Nov 11, 2017, 3:03 pm Reply

The cringe is so real. Cant look away

Michael Romero

Nov 11, 2017, 9:22 pm Reply

Lol, thankyou I'm getting a job and gonna save up for an apartment

Kim Cham

Feb 2, 2018, 11:34 pm Reply

Also, think about everything that you do in a day, for the week. It will make you list ALL of the items you need that you don't realize you use daily/weekly, because they're just always there. You'll need your own… E.V.E.R.Y.T.H.I.N.G. Start your list with things that you can't take from your parent's house / parents' houses and it'll be a real eye-opener.

Taylor Herzog

May 5, 2018, 5:27 pm Reply

Meow

AZI THE MLG PRO

Jun 6, 2018, 3:42 am Reply

Mmm you're sooo sseexxyy

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