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 andyou're trying to figure out if you can get your own place, then it's time to set up abudget. and i always say, "set up a budget," but your budget changes. it changes as youchange and especially when you make new decisions and you decide to do some new things withyour 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 littlethings that go into an apartment, like furniture, like tables and chairs i guess because peoplehave to sit somewhere. and then i also wanted plants. all of these things you're going toneed to remember to budget for. so i'm going
to help you budget for an apartment, so youcan be ready to move out. step one, set your monthly amount that you'dlike to pay for rent. if you make $1000 a month and you think you can afford $500 amonth, just stop. your monthly rent expense should be no more than about 23% to 25% ofyour take home pay. not your gross pay, but what you exactly bring home each month. soif you bring home $1000 a month, then 23% to 25% is $230 to $250. it seems like a smallamount, but you probably need to get a room mate or you probably need to wait until you'rereally ready to move out. then, for your utilities, you're going towant to budget about 10% a month for utilities. so that's going to bring your total housingpayment to about 33% to 35% a month. and that's
a really good place to be when you're thinkingabout 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 apartmentwas $680. actually, it was started out... it was $640 a month in rent, and then i hadabout $40 more in utilities. so i was spending about $680 to live on my own, and i was ableto maintain that payment because i used that percentage rule. so keep that percentage rulein mind. the next thing that you need to do is budgetfor all of those little expenses and for all of your furniture and things like that. iwas 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 greatplace where i could get inexpensive furniture and kind of furnish the apartment. so i gotpieces a little bit at a time. i didn't go out and furnish the entire apartment wheni first moved in because that would have increased my monthly expenses. so i set aside a littlebit of money each paycheck in each month in order to furnish my apartment. then finally, set aside some cash just forthe little stuff, food that you're going to
be eating as soon as you move in and any ofthese last-minute surprises. i had a gas bill that i had to pay from an old apartment ididn't even know i had that i had to pay that came $47 out of pocket. i had to make surethat 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!
i have an entire post on how i savedup for moving and all of the little amounts that i saved up for and exactly what i spentwhen i moved into my new apartment. so if you go to youngfinances.com, you can readthat post. i'll put the link in the box below, and i'd also love for you to leave a commentbelow. if you have any suggestions for people that are moving out, this video was requestedand 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 newvideos coming out every tuesday and be sure to hit the like button and give it a thumbs-upif you liked it. thank you so much for watching, and i'll see you guys next week. bye.
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