Renting an Apartment: Is this cost per month affordable for my budget?

Question

The apartment's rent is $750 a month...I'm living with 2 other roommates, so we are dividing that cost three ways. We'll each owe $250 a month...plus electric ($35 - $50 a month), plus cable t.v. ($30 - $40 a month), plus WiFi internet ($30 - $40 a month). So all together, each of us will owe around $275 a month, roughly.

I make $32,000 a year before taxes and health insurance...I make a $250 car payment per month, and car insurance is $1000 (+ or -) for 6 months.

This is my first time renting (I'm 20), so I want to be sure that I can afford this apartment.

Answer 1

Average your last 3 month's take home pay because pre-tax amounts aren't useful for what you need to know.

Here are some basic things you should budget for:
Income: $XXXX
Rent: $250 ($750/3)
Utilities: $17 ($50/3)
Cable: $14 ($40/3)
Internet: $14 ($40/3)
Car payment: $250
Car Insurance: $167 ($1000/6)
Credit card: $XXXX
Loans: $XXXX
Phone: $XXXX
Food: $XXXX
Entertainment: $XXXX
Misc: $XXXX
Savings: $XXXX
Renter's Insurance: $XXXX
Tax expenses: $XXXX

As someone said, make sure you can afford the place entirely on your own. If one of your roommates flakes out, you're stuck with the bill.

For savings I'd suggest you have your paycheck auto deposited into your account. Put aside a set amount for savings and the rest can go into your checking account for paying bills and such. Try at least 5% of your take-home pay for savings. If you can afford more, even better! You never know when you'll have a large bill come through.

Renter's insurance is a great idea and it's not really expensive, maybe averaging out to $20/month. I highly doubt that your landlord will cover your personal belongings in the event of a fire or if your unit floods (a toilet overflows, the upstairs neighbor's shower leaks...). If something happens you're out of luck unless you have your things insured. Ask the company you get your auto insurance from what their rates are.

For miscellaneous expenses, take a look at what you've purchased over the last two or three months and average that amount. It's a good idea to keep a journal or keep your receipts so you can keep track of your spending habits.

Tax expenses should be small if you're having the right amount of your paycheck withheld. If you haven't had to pay extra taxes in the past, you're probably okay on this one.

Answer 2

Compare quotes from the best companies at http://HELP.PROTECTIONQUOTES.NET/-avggsKC402

RE Renting an Apartment: Is this cost per month affordable for my budget?

The apartment's rent is $750 a month...I'm living with 2 other roommates, so we are dividing that cost three ways. We'll each owe $250 a month...plus electric ($35 - $50 a month), plus cable t.v. ($30 - $40 a month), plus WiFi internet ($30 - $40 a month). So all together, each of us will owe around $275 a month, roughly.

I make $32,000 a year before taxes and health insurance...I make a $250 car payment per month, and car insurance is $1000 (+ or -) for 6 months.

This is my first time renting (I'm 20), so I want to be sure that I can afford this apartment.

Answer 3

You can save on your insurance by compare quotes at DEALSQUOTE.INFO-

RE Renting an Apartment: Is this cost per month affordable for my budget?

The apartment's rent is $750 a month...I'm living with 2 other roommates, so we are dividing that cost three ways. We'll each owe $250 a month...plus electric ($35 - $50 a month), plus cable t.v. ($30 - $40 a month), plus WiFi internet ($30 - $40 a month). So all together, each of us will owe around $275 a month, roughly.

I make $32,000 a year before taxes and health insurance...I make a $250 car payment per month, and car insurance is $1000 (+ or -) for 6 months.

This is my first time renting (I'm 20), so I want to be sure that I can afford this apartment.

Answer 4

I might suggest one to visit this web page where onel can get rates from the best companies: http://INSURECOMPAREQUOTES.US/index.html?src=2YAvzjeiZV10

RE :Renting an Apartment: Is this cost per month affordable for my budget?
The apartment's rent is $750 a month...I'm living with 2 other roommates, so we are dividing that cost three ways. We'll each owe $250 a month...plus electric ($35 - $50 a month), plus cable t.v. ($30 - $40 a month), plus WiFi internet ($30 - $40 a month). So all together, each of us will owe around $275 a month, roughly.

I make $32,000 a year before taxes and health insurance...I make a $250 car payment per month, and car insurance is $1000 (+ or -) for 6 months.

This is my first time renting (I'm 20), so I want to be sure that I can afford this apartment.
Follow 15 answers

Answer 5

You should be able to afford it. When you are done paying all your bills now, can you afford to put aside $350 for bills and food? Just try it out for a month or two and see how it turns out. Then, if it works ok, you could use that money as the move in fee.

Also, you want to make sure you find and apartment you can afford on your own. Sometimes friends bail out. It does not matter how close you are, things can happen, and you need to be prepared for something like this. I totally agree with the last person who gave you this advice as well. Please take it seriously.

It's costly living on your own. All kinds of unexpected money costing things pop up. Many times, you will find, it is more than expected. You always want to keep extra $$ aside for a rainy day.

Now is the time to budget your money. I've guesstimated this at at $2000 monthly, after taxes. All your major expenses comes to about $700. You'll have roughly $1,300 left over after you pay your rent and bills-not including food & misc. Can you work with that every month? Are you used to a lifestyle of luxury? If you are, you will have to tone it down if you decide to move. However, you can afford it if you know how to budget your money right.

Good Luck on your independence!

Answer 6

You can easily rent an unfurnished apartment for $1200 - 2000 per month. I don't know what furnishings rent for. If you want access to the LRT, then look for a place in NorthEast Edmonton. I have lived in NE Edmonton for years, and I have never had any problems with crime. It is as safe as anywhere. If you need a map of Edmonton that show the various areas, go the the real estate weekly website (keywords 'real estate weekly edmonton'). Edmonton's streets and avenues are numbered, making it easy to find locations. The streets run N-S, the avenues E-W. Downtown is 100 St and 100 Av. You can figure out locations from this. Best of luck.

Answer 7

It sounds like yes you can afford it, but please, please please, listen to this bit of advice- make sure you can afford the entire rent amount of $750.00 a month. Do not count on roommates- even if they are best friends, girl friends brothers, cousins- whatever. I have evicted more people who moved in with roommates and one person skipped out, or lost a job, or went to school and couldn't pay their half for a million different reasons and then everyone got evicted.

Also, always over estimate rather than under estimate your bills- you never know when an emergency Will happen.
When doing a budget take your Net income- not gross and subtract the bills.

You should account for:
Rent:
Utilities:
TV
Phone
Car pymt
Car insurance
Health insurance
Food
Gas
and the very important Misc. (at least $100 monthly)

and then you will have your left over. Dont be surprised if its much smaller than you originally thought!

Answer 8

Well, I don't know..it really depends on you if you can afford it or not. Are you the type of person that spends $8 on a bottle of shampoo or are you really frugal with things? What I'm trying to say is if you are a big spender, you have to watch it from now on. You will also have to figure in grocercies, gas money, oil changes, car repairs (every so often), if you have a cell phone, haircut, if you smoke or drink, laundry money, spending money for clothes or going to do stuff with friends..there's a lot more to living on your own (even with roomates) than rent and utilities. You'll go broke really fast (even if you can afford it) if you don't add up all the little purchases and make a budget for yourself in the beginning and figure out where you can spend a little more or save a little more.

And as for the roommate thing, to save yourselves from ending up in court, it's best to have all of what you told us in writing on your lease. I know some people that had to go through some hell legally because of things that weren't documented, and it broke up some real friendships too.

Good luck! :)

Answer 9

ok i dont know where u are living that electricty is only 50 a month, cable is only 40 and internet is only 40 I live in an apartment and electricity is like 140 a month cable/internet is like 150, food is like 200-300 a month depending on what you buy. Dont forget about cell phone bills, furniture, misc things that you will want to do (going out to eat, movies), gas for your car.

My guess is that your bills would add up to about a 1300 a month. Which isnt bad. you should have around 700-800 left after your bills are paid.

Answer 10

I am guessing your take home pay is around $1000 biwkly and from my calculation, this is what i came up with:

$1000-250-167=$583 (this is after your car and insurance)

$1000-275(rent)=$725

Now, you are looking at a take home of approx $1200 per month. Add in your groceries, gas etc......

that is a good number