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BUDGETING First Apartment Budget: Complete Financial Guide for... 2026-02-27 · 4 min read · apartment · budgeting · renting

First Apartment Budget: Complete Financial Guide for First-Time Renters

budgeting 2026-02-27 · 4 min read apartment budgeting renting young adults

Getting your first apartment is exciting. It's also more expensive than most people expect, especially in the first month. Understanding the full financial picture before you sign a lease prevents the shock of being broke during what should be an exciting transition.

This guide covers everything from the upfront costs you'll need before move-in to setting up a sustainable monthly budget.

The Upfront Costs: What You Need on Day One

Your first apartment requires substantial cash before you even step inside. Plan for all of these:

Security deposit: Almost all landlords require 1-2 months rent as a security deposit held against potential damage. On a $1,400/month apartment, that's $1,400-$2,800 held in escrow. You get it back when you leave in good condition — often 2-4 weeks after move-out.

First and last month's rent: Many landlords require first AND last month's rent upfront, in addition to the deposit. That's 3 months of rent due before you move in. Some landlords only require first month, so ask explicitly.

Renter's insurance deposit/first payment: Renter's insurance is cheap ($15-$25/month) and often required. You'll typically pay the first month upfront.

Moving costs: Truck rental, professional movers, or just gas and pizza for friends. Budget $200-$800 depending on how much stuff you have and how far you're moving.

Furniture and basics: If you've been living with family or roommates who owned everything, you're starting from zero. The cost to furnish even a modest apartment is significant.

Utility deposits: Gas, electric, and sometimes internet providers require deposits from first-time customers with no utility payment history. Budget $100-$400.

Total upfront cost estimate for a $1,400/month apartment: $4,000-$7,000 before you count furniture.

What to Budget to Furnish Your First Apartment

You don't need everything at once. Prioritize ruthlessly:

Must-haves from day one:

Get within the first month:

Can wait:

The key is buying secondhand wherever possible. Facebook Marketplace, OfferUp, and thrift stores in nicer neighborhoods are full of quality furniture for 20-30% of retail price. Many people moving or downsizing give things away free. Your first apartment doesn't need to look like a West Elm showroom — it needs to function.

Realistic budget for bare-bones furnishing: $700-$1,500 Realistic budget for comfortably furnished: $1,500-$3,000

The Monthly Budget: What to Actually Plan For

Once you're in, here's what a complete monthly budget looks like for a typical first apartment:

Fixed monthly expenses:

Variable monthly expenses:

Savings targets:

The widely-used guideline is housing costs (rent + utilities + renter's insurance) should be no more than 30% of gross income. In many cities this is difficult to achieve — but it's a useful target to steer toward when choosing between apartments.

If your rent is $1,400, you should ideally be earning at least $4,667/month gross ($56,000/year). If you earn less, you need roommates, a shorter commute to a cheaper area, or to delay moving out until income increases.

The 30% Rule vs. Reality

The 30% rule is aspirational in expensive cities. Many renters in New York, San Francisco, Seattle, or Austin spend 35-50% of income on rent. This leaves little margin for savings and emergencies.

If you're spending over 30% on housing, compensate elsewhere:

Common Financial Mistakes First-Time Renters Make

Underestimating utilities. "Utilities included" means different things to different landlords. Confirm exactly what's included. A first winter utility bill in a poorly insulated apartment can be shocking.

Forgetting annual costs. Renters insurance often bills annually. Subscriptions renew. Account setup fees hit the first month. Build a buffer.

Not having an emergency fund. Without a cushion, any unexpected expense — a car repair, an ER visit, a broken appliance — becomes a credit card debt. Build at least $1,000 before moving out, ideally 3 months of expenses.

Overspending on furniture immediately. New apartment energy leads to impulse purchases. Spend the minimum needed to function comfortably, then gradually upgrade with used items as you find good deals.

Not reading the lease. Late fees, pet policies, subletting rules, and maintenance responsibilities are all in the lease. Understand what you're signing. Ask about the deposit return process and document the apartment's condition with photos at move-in.

Forgetting the lease-end costs. When you leave, you may owe professional cleaning, carpet cleaning, small repairs. Keep the security deposit in the back of your mind and take care of the apartment accordingly.

A Simple First-Apartment Financial Checklist

Your first apartment is a foundation for financial independence. Plan it well from the start.