How to Budget for Your First Apartment: Complete Guide

Moving into your first apartment is exciting — and expensive. Between security deposits, furniture, and monthly bills you've never paid before, the costs add up fast. Without a budget, it's easy to blow through your savings before you've even settled in.

This guide covers everything you need to budget for your first apartment, from move-in costs to ongoing expenses, plus tips for keeping your finances healthy.

Before You Move: Understanding the True Costs

Rent is just the beginning. Here's what you'll actually need:

Upfront Costs

• Security deposit: Usually 1-2 months' rent ($1,000-$3,000+)
• First month's rent: Due at signing
• Last month's rent: Some landlords require this upfront
• Application fees: $25-$100 per application
• Moving costs: $200-$2,000+ depending on distance and method
• Utility deposits: Electric, gas, internet setup fees ($100-$300)

Total upfront: Plan for 3-4 months' rent in savings before you move.

Furnishing Costs

• Bed and mattress: $300-$1,500
• Couch: $200-$1,000
• Kitchen essentials: $100-$300
• Bathroom supplies: $50-$150
• Cleaning supplies: $50-$100
• Basic furniture: $200-$500 (desk, chairs, storage)

Tip: Buy secondhand! Facebook Marketplace, Craigslist, and thrift stores can cut furnishing costs by 50-80%.

Monthly Expenses to Budget For

Here's a realistic breakdown of monthly apartment costs:

The 30% Rent Rule (And Why It Matters)

The classic advice: spend no more than 30% of your gross income on rent.

• $40,000 salary: Max rent ~$1,000/month
• $50,000 salary: Max rent ~$1,250/month
• $60,000 salary: Max rent ~$1,500/month
• $75,000 salary: Max rent ~$1,875/month

In expensive cities, 30% may be unrealistic. If you must spend more, cut other expenses aggressively and avoid lifestyle inflation elsewhere.

Creating Your First Apartment Budget

Here's how to set up a budget that works:

Step 1: Calculate Your Take-Home Pay

Use your actual paycheck amount, not your salary. After taxes, insurance, and retirement contributions, your take-home is what you actually have to spend.

Step 2: List Fixed Expenses

These don't change month to month:

• Rent
• Renter's insurance
• Phone bill
• Internet
• Subscriptions
• Car payment/transit pass
• Student loan payments

Step 3: Estimate Variable Expenses

These fluctuate:

• Utilities (electricity, gas)
• Groceries
• Gas/transportation
• Entertainment
• Dining out
• Personal care

Step 4: Build in Savings

Even on a tight budget, save something:

• Emergency fund: Aim for 3-6 months of expenses
• Retirement: At least enough to get employer 401(k) match
• Sinking funds: Save monthly for annual expenses (car registration, gifts)

Step 5: Track Everything

Use an app like Expense Flow: All-in-One to track every expense. The free tier includes:

• Budget categories with limits
• Real-time spending tracking
• Alerts when approaching limits
• Receipt scanning for records
• Roommate expense splitting (if applicable)

Sample First Apartment Budget

Here's what a budget might look like on a $45,000 salary (~$3,000/month take-home):

Money-Saving Tips for Your First Apartment

Reduce Utility Bills

• Use LED bulbs
• Unplug devices when not in use
• Use fans before AC
• Layer up before cranking heat
• Take shorter showers

Save on Groceries

• Meal plan before shopping
• Buy store brands
• Cook in batches
• Limit dining out to once a week
• Use grocery pickup to avoid impulse buys

Furnish Smart

• Buy secondhand furniture
• Ask family for hand-me-downs
• Wait for sales on big items
• Start with essentials only
• DIY simple decor

Consider a Roommate

Splitting rent with a roommate can save $500-$1,000+ per month. If you go this route:

• Use an app like Expense Flow to track shared expenses
• Agree on how to split utilities (equal or by usage)
• Set clear expectations about guests, cleaning, and noise
• Put everything in writing

See our guide on splitting expenses with roommates for more tips.

Frequently Asked Questions

How much should I save before getting my first apartment?

Save at least 3-4 months' rent to cover security deposit, first month, moving costs, and initial furnishing. Having a small emergency fund on top of that is even better.

Is renter's insurance worth it?

Absolutely. For $15-$30/month, it protects your belongings from theft, fire, and water damage. It also provides liability coverage if someone is injured in your apartment. Most landlords require it anyway.

What if I can't afford 30% rent in my city?

Consider roommates, a longer commute, or a smaller space. If you must spend more on rent, cut aggressively elsewhere — cook all meals, skip subscriptions, use public transit. Avoid spending over 50% on rent if possible.

Should I buy or rent furniture?

Buy secondhand for your first apartment. Furniture rental services exist but are expensive long-term. You can upgrade to nicer pieces later when you're more financially stable.

What's the best budget app for first-time renters?

Expense Flow is a great choice — it's free, includes budget tracking, and has roommate expense splitting if you share the apartment. The AI receipt scanning helps track move-in purchases easily.