How much rent can you afford? Allow us to help you run the numbers.
How are you going to pay last year’s rent? It’s a compelling question. Such a line is a rhetorical question posed in the musical RENT, which you may or may not have heard of – or seen the movie version! In any case, it does raise a good point. How much rent can you afford? Allow us to help you run the numbers. Calculations, ahoy!
Build a Reasonable Budget
For starters, determine what your budget is. There’s a budgeting rule of thumb called the 50/30/20 rule. If you aren’t familiar with it, that’s okay! We’ll tell you about it. It’s a method that lets you figure out how you can pay your monthly rental fee and still have money left over for other necessities.
- Calculate Your Take-Home Pay: Once taxes and deductions are taken out of your paycheck, the take-home pay is what you get. Let’s suppose that you’re currently self-employed; in that case, subtract your business expenses and taxes from your gross income. But if you’re an hourly employee, this round of math gets a bit more complicated. How many hours in a week do you work? How much money do you earn per hour? After you’ve answered those questions, multiple the resulting figure by 50. Then take away taxes and business expenses – what’s left is what you receive.
- Split Up the Remainder: So, how does the 50/30/20 rule work? Aside from paying your rent, the first 50% goes to essentials like car payments, bills, groceries, and utilities. Then 30% goes towards “wanted” items like consumer goods and drinks with friends. The last 20% is then dedicated to your hopefully burgeoning savings account!
- Break Down the 50%: Assume that you commit $20k to yearly needs. Divide that number by 12 to find out how much you pay every month. This means you’ll have $1660 or so for car payments, insurance payments, credit cards, student loan debt, and all other monthly financial obligations.
Save Your Pennies
We understand that this entire process can sound scary. But it doesn’t have to be so intimidating! Long before you begin the move and take responsibility for your new residence, you still have some logistical work to do. After all, you’ll have to cover the security deposit, first/last months’ rent, application fees, utility hookups, and movers. Having a co-guarantor can be a massive help here, especially if you feel strapped for cash.
Check Your Credit Score
One more thing – double-check what your credit score is. Lower scores (below 600) need serious work. They’ll also deny you an approval in many apartment complexes unless a co-signer agrees to join the lease. Clear up any credit problems that affect your scores. Happy apartment hunting!
Let Us Welcome You Home to Your Fabulous New Apartment!
Here at Beechtree Apartments, we pride ourselves on providing you with luxurious living and affordable pricing. So when you choose one of our fabulous new apartments in Calvert County or Southern Maryland, you can see how modern living meets modern-day conveniences.
It’s easy to find us! Visit us at 200 Jenden Way Suite 101, Prince Frederick, Maryland 20678. Are you social? Feel free to follow us on Facebook and Instagram! You can also reach us by phone at 443-432-3557!
