Generation Z is the generation born after 1995, and it’s safe to say that this generation has been through a major financial crisis, as a lot of them grew up in the middle of an economic recession. Therefore, they grew up into people that are more mistrustful of major financial institutions and the modern economy. Finding the first rental apartment becomes increasingly difficult, so if you’re a gen Z, here are some budgeting tips that will make the process much smoother.
Calculate all the Expenses
Moving to a new apartment requires a lot of planning and preparation. Moving costs tend to differ from city to city, so be sure to calculate everything before you sign that lease. Using a moving company can be a significant portion of all costs, so make sure to ask around until you find the best offer. There are many hidden expenses such as your own gas costs, buying new stuff and paying the real estate agency, so don’t forget to consider that as well.
Pay the Rent You’re Comfortable With
Gen Zs are socially conscious, especially when it comes to class differences. Therefore, those who are looking for their first apartment should pay the rent they’re comfortable with. If your main goal is to be independent, then you can do it in a smaller place with cheaper rent. Moving to a big city such as NYC or Dallas might seem like a dream come true, but if you’re going to do that, then be sure to find an apartment with affordable rent. Average rent prices tend to vary per city, region and sometimes even season, and they also tend to increase with time. Making your monthly rent payment should be your top priority, so it’s essential to also adjust your budget accordingly. Generally, the rent you pay should be about 30% of your monthly income, preferably a bit less than that.
If You Want to Save Money, Learn to Compromise
Saving money is something you should do while you’re still ahead. Moving out of your parental home or the college dorm is an important life event. However, if you’re young and in the beginning of your career then it’s important to compromise in order to save money in the long run. Finding a more affordable apartment can help you there. For example, if you’re in Texas, and bigger cities such as Austin and Houston aren’t the option, then check out Midland apartments for rent. Sometimes, living a bit further or opting for a smaller studio accommodation might seem like a huge compromise, that in reality, is a good decision, mainly when it comes to your budget.
Find Practical Ways to Save Money
Unlike Gen X-ers, millennials, and especially Gen Z-ers are more concerned about their financial stability. Finding your first rental is therefore an excellent opportunity to test your money-saving skills. Buying cheaper, second-hand furniture is a great way to start a new chapter in your life. Besides, if you’re going to spend a lot of rent and accompanying utilities, then there’s no need to splurge on expensive furniture as well. The same goes for other household appliances such as a dishwasher, laundry machine and laundry dryer.
Know What’s Important to You
We’ve mentioned compromising, and even though it’s necessary to do that at certain times, it doesn’t mean you have to always settle. If you’re young, then it’s likely that a high-speed Internet connection and apartment technology matter a lot to you. According to some reports, 62% of young renters said that apartment technology is crucial to them. Hence, if you’re like that, then it’s important to find a place that will provide you with all the high-tech amenities. Aside from technology, you should also ensure that your first rental has decent parking and proximity to shops, gyms and other important places.
Don’t Forget About the Insurance
Insurance plays a huge role in our day-to-day lives. In case you’re looking for a new apartment to rent, then don’t forget about the renter’s insurance. It can protect you against accidental damage, theft or fire. Many landlords request it, and since it is often inexpensive, it’s still an important investment that can save you thousands in the long run. A customized insurance policy is the best deal, as long as you make sure that it fits your budget and your lifestyle. Paying for insurance is also a great way to remain protected, mainly if you live with pets.
Renting your first apartment is a big milestone, especially if you’re a young Gen-Z person. This guide will help you get started. As long as you’re mindful of your budget, you’ll be able to find an amazing place that will have everything covered. Remember that some compromises are okay, but make sure to consider your needs, before you sign your new lease.
SUBSCRIBE FOR MORE! HERE'S WHY:
1. You get 7 free books
2. You get the best money & productivity articles
3. You get the latest updates - all in one email per week