How do you manage the monthly payments for your apartment?

Question

I am moving to my new apartment in a week or so but i'm a little scared of how to manage my money to pay my rent every month. I've lived at home with my parents all my life and all i've had to pay monthly was $300 just to help my dad around the house. I make close to $1,700 a month and the rent will be $825. I'm sure I can afford it along with my cell phone bill($100), my car insurance($68) and 2 credit card payments($100) a month but i'm just not sure how to save all that money and have it ready for the end of the month. Any tips on how you manage your money. Do you save so much every payday and keep it for your rent. What do you do? Please help. I'm 21 years old and moving in to my first apartment. Thanks!

Answer 1

At least you're mature enough to ask about this....when I was your age---I was TERRIBLE at managing money!

Do you get paid biweekly? If so, I would save half of my rent from each paycheck to pay the rent. The best thing to do, in my opinion (and I still do this now that I'm married) is to get another account at your bank (consider this to be your "bill account" only). You can get one that is tied to your regular checking account as well to keep it from going overdrawn. Put all of the money that you are saving for your bills into this "bill" account and pay your bills directly from it. That way, you will always know that what you have in your regular account is "extra" and if you end up splurging on a new outfit or something for your new apartment--your bill money is still safe.

I hope that makes sense. Congratulations on your first apartment!!

Answer 2

It's very very simple honey. Write it down! I am 25 just bought my first house and we are buying a new truck for my boyfriend... it's a little crazy with all the bills, but I know with a budget we can do it. How often do you get paid? If it is twice a month, take a portion of each paycheck that you will need specifically for your bills. You might be a little tight for awhile, and DON'T EAT OUT! it's the most expensive habit there is. It doesn't seem like it, but it adds up over time. As soon as I get my paychecks, I pay my bills. So I know it is done for the month, and whatever money left over I can play with (or save is a better solution). You wil have an awesome time on your own! Good luck and maybe you will have to eat at mom and dad's a few times a week, big deal...

Answer 3

Budget ! Get a recent bank statement and take a note of what your most common expenditure is. ie. Gas, Insurance, Groceries etc. Total them all up then add on your monthyl rent. Compare it to what you monthly income is, If you find there is a defecit....you need to look at where you can make some savings. Its a good practice to use your debit card for as many purchases as possible as opposed to just withdrawing cash. This way you can keep an eye on what you are spending your money on. With cash it has a habit of being spent and you dont know what you have spent it on.

Answer 4

I agree with JohnDoe. That apartment is too expensive for your income. I make almost double than you and my rent is $600 a month. I'm not sure if your utilities are included in ur rent or not but you need to consider that as well. IMO you need to budget for everything including electric, food, gas for your car, furniture.

I hope u have a savings account and have started to invest for retirement in an IRA or 401K. If not you need to make sure you cut back on the wants big time and focus on the necessities. Budget in an emergency fund in case something goes wrong and you need some cash for repairs. Also, try to save up for your purchases instead of using that credit card.

Answer 5

I'm 19 and still live with my parents, but to save money for my tuition at college, I set up a new savings account and put asside half of my check each week for that and the rest would go into checking or cash to pay bills. Try to get your credit cards paid off to eliminate those bills or consolidate them to one bill. Only buy what you need! Save save save for a while and build up a nice rent fund. It will take a while but it will be worth it in the end.

Answer 6

That rent is way too expensive for your level of income. Solution, get a housemate, share the apartments, I am sure you will end up paying somewhere around $500/month and you can use the extra $300 for whatever, or just save it.

Answer 7

Every payday, I divide my paycheck by the number of bills I have. Example: If I make $800 and I have a total of 10 bills (inc. food and gas), then I put $80 into ten different envelopes. It is best to start this as soon as possible so you can be a month ahead. Mark the envelopes with each bill to be paid.

Answer 8

Do this faithfully: If you get paid every week, put 1/4 of the rent in a 'rent acct.' If you get paid every 2 weeks, put 1/2 the rent aside and on your 2nd pay of the month you'll have it.
Don't burn any bridges with mommie and daddy!

Answer 9

Be sure you identify your "needs" and "Wants". Rent, food, utilities, and such are needs. Pay these first, then use the rest of your income to get your wants. If you put wants first then you will be moving back in with mom and dad real quick...which would suck. Put it in your mind that it is not an option to move back in with your parents. This will help you stay motivated to pay your bills and take on your grown-up responsibility.

Answer 10

Putting away a certain amount each week for each expense is a good way to go. Also, you don't have to wait until the due date to pay the rent. When you have it in full, pay it for the next month.

Good luck.