Getting your first apartment is a big step, and the rent is usually the first number you think about. But once you start looking at actual listings, you'll quickly find that there's more to the cost than the monthly payment. You may need money for a security deposit, application fees, utilities, renters insurance, moving expenses, and all the little things you need once you have your own place.
The good news is that you can avoid most financial surprises by figuring out the numbers before you even sign a lease! Whether you're moving out for college, starting your first full-time job, or simply ready to have a place of your own, here's what to think about before making the move.
A simple place to start is keeping your housing costs to about 30% of your gross monthly income. If you earn $2,800 a month before taxes, that would put your target housing budget at roughly $840.
That percentage is a useful starting point, but your own budget matters more. Take a look at what actually reaches your checking account each month, then subtract the expenses you already have. Car payments, insurance, student loans, groceries, transportation, phone service, and savings all need to fit into the same paycheck.
It’s also important to look at the full monthly cost of an apartment, not just the rent listed in the ad. If the rent is $850 but you’ll also pay another $150 for utilities and parking, your actual housing cost is closer to $1,000 a month.
Ultimately, choosing a place that gives you a little room in your budget can make it easier to handle an unexpected expense, keep saving, and feel more confident about your monthly costs.
Your first apartment comes with both upfront expenses and ongoing monthly bills. The amount you'll need upfront depends on the landlord and property, but it's common to pay a security deposit (which is usually two months worth of rent) and first month's rent before moving in. You may also have application fees, utility deposits, renters insurance, and moving expenses.
Then there are the things you’ll need after you move in. If you’re starting from scratch, furniture, bedding, dishes, cookware, cleaning supplies, and other household basics can add up faster than you might expect.
Before you apply, ask the landlord for a clear breakdown of what you’ll be expected to pay. It helps to know which utilities are included in the rent and whether there are extra costs for things like parking, pets, trash, or other services.
Your monthly budget may need to cover:
You don’t have to buy everything for your apartment all at once. Start with what you need most, then add the rest as your budget allows. If you’re also getting ready for moving day, our moving checklist can help you stay organized and keep track of what still needs to get done.
There isn’t one standard move-in cost for every renter, and the total can look very different from one apartment to the next. Your deposit, fees, and other upfront expenses will depend on where you live, the property you choose, and what the landlord requires before you move in. For example, if you’re renting an apartment for $900 a month and the security deposit is $1,800, then add a $50 application fee, $100 for utility setup, and $300 for basic household items, you’d need about $3,150 to get started.
| Apartment move-in expense | Example cost |
| Security deposit | $1,800 |
| First month's rent | $900 |
| Application fee | $50 |
| Utility setup | $100 |
| Basic household items | $300 |
| Total | $3,150 |
Your actual costs could end up being higher or lower than this example. Some landlords may require additional deposits or fees, while others may include certain utilities or other services in the rent. That’s why it helps to get the full cost in writing before you apply. When you know the total upfront amount, it’s much easier to set a clear savings goal instead of guessing how much you’ll need.
At a minimum, try to save enough to cover your expected move-in costs. If you can, it also helps to keep a little money set aside for regular expenses and unexpected bills after you move in. Moving can use up more of your savings than you might expect, and the last thing you want is for your account balance to hit zero right after you pay your deposit and buy the basics for your new place.
Once you know how much you need, work backward from your planned move date. If your goal is $2,400 and you have six months to save, you'd need to put away $400 a month. If you're paid twice a month, that's about $200 from each paycheck.
Keeping that money separate from your everyday spending can make your goal feel easier to manage. A Savings Account can give your move-in fund a place of its own, while your Checking Account can still be used for everyday expenses and bills.
It can also help to automate your savings on payday instead of waiting to see what’s left at the end of the month. If you use a First Alliance debit card, Round Up Savings can move the difference from rounded-up purchases into your savings or money market account. You can also use Mobile Banking to check your balances and keep an eye on your progress.
Your budget may look different once you have an apartment because you'll be responsible for expenses you may not have paid before. Start with your take-home pay and list your regular bills first, including rent, insurance, loan payments, and your phone bill. Then estimate the expenses that can change from month to month, such as groceries, electricity, gas, and transportation.
Fixed bills are usually the easiest place to begin because the amount doesn't change much from month to month. Add up your rent and other regular payments, then look at what's left from your paycheck for groceries, transportation, savings, and personal spending.
Don't forget to include savings in your monthly plan, even if you can only set aside a small amount. Treating savings as part of your budget rather than whatever happens to be left over can make it easier to build an emergency cushion over time.
The 50/30/20 budgeting method is one approach you may come across. It generally suggests putting 50% of your income toward needs, 30% toward wants, and 20% toward savings and debt payments. You don't have to follow those percentages exactly, especially when you're adjusting to a new housing payment. Think of them as a starting point and adjust the numbers based on your actual income and expenses. What matters most is having a clear idea of where your money is going each month. A budget that fits your situation is more useful than trying to force your spending into percentages that don't work for you.
Your first budget won't necessarily be perfect. Once you've lived in the apartment for a month or two, compare what you expected to spend with what you actually spent. Your utility bills may be higher than expected, or you may find that groceries and household expenses cost more now that you're living on your own.
Use what you learn to adjust your budget for the following month. My Money in Online Banking can help you track your spending and work toward savings goals, while Mobile Banking makes it easy to manage your accounts and recurring payments. For more budgeting guidance, see our article on how to create a budget.
Renting for the first time can come with a few financial surprises, especially if you’re used to splitting costs with family, roommates, or not paying some of these bills on your own yet. It’s easy to focus on the excitement of finding a place and overlook the smaller details that can stretch your budget later. A little planning up front can help you avoid some of the most common mistakes and feel more confident about the decisions you make before you sign a lease:
Moving into your first apartment comes with more costs than just the monthly rent, and it’s easy to miss a few of them when you’re focused on finding the right place. Between upfront expenses, monthly bills, and the details hidden in a lease, a little preparation can go a long way. Before you sign, use this checklist to make sure you know what you’re getting into financially and feel more confident about the decisions ahead.
Renting your first apartment is a big financial change, but you don't need a complicated system to prepare for it. Start by deciding what you can comfortably spend on housing, then find out what you'll need upfront and how much your regular bills will cost. Most importantly, don't let the excitement of finding an apartment push you into a budget that leaves no room for anything else. A little planning now can make it much easier to enjoy your new place without constantly worrying about the next paycheck.
Getting your first apartment is a big step, and having a plan for your money can make the transition a lot easier. If you have questions along the way about saving, budgeting, or managing your accounts, talk to our team. We’re here to help when you need us.