Budget advice for first-time renters

Budget advice for first-time renters

It can be a daunting task to create your first budget, but it is something that is absolutely crucial when you move out on your own for the very first time.  Should you take on more than you can handle you may find yourself without even the money to pay for your next meal.

The first step to creating a budget after you move is to work out your net income.  This is what you end up with after your gross income has been hit with taxes, social security deductions, health insurance and so on, and is thus the budget you actually have to be able to work with.

The next step is to draw up a list of all your monthly payments and expenses.  This is where the real work on your move budget begins.  Make up a list of all of your fixed monthly payments such as rent, gas, renters insurance, credit cards, car insurance, electricity, loans and car payments.  These are more inflexible costs than others and thus the budget needs to be formed around them.

Your anticipated expenses are the next thing to write down.  These include basics such as cable, food, pet supplies, prescriptions, hobbies, internet, household items, gym membership, activities and clothing.  Your online bank account is a superb resource for this part, as you can check your spending for the last few months to make sure that you have covered everything.  You need to be honest and realistic when drawing up a budget.