Make Preparations

Is it Your 1st Time Renting?

Cool. There are few things in life that are as exciting as getting your driver’s license, graduation, your first real job and getting your first place. You’ve probably been dreaming about this for a long time and now that the time is come, your mind is racing. You’ve visualized entertaining your friends, where to put that stereo that you’ve wanted for 2 years, and the great artwork you want for the walls.

Freedom is intoxicating but before you get “drunk on excitement”, here are a couple of tidbits to ponder before you begin your apartment search. These are common mistakes many others have made that you’re not.

What can I afford? Experts say that your dwelling should not be more than 25- 30% of your annual salary. Sometimes that figure is too high if you already have accumulated any major debts or expenses. So for your specific spending limit, the best thing to do is take 30 minutes or so, write down your income after taxes. Subtract all expenses. Car payments, insurance, food, utilities, phone, internet, healthcare, entertainment, clothing, credit cards, gas, household supplies, cleaning, etc..

What is left is what you can afford.

Upfront Costs. Price is always a main concern with a move; however, choosing a mover strictly on price is not always the most prudent decision. Do a little homework to make sure your moving day will be as pleasant and event free as possible.

Credit Cards. – Use sparingly. You can be in control of credit cards or credit cards can control you. When you’re in control, you use the credit card company to begin establishing a good credit score. If you can’t afford cash for a purchase, you don’t buy it. You only charge when you know that you will be paying it off within 2 or 3 months.

When credit card companies control you, they are merciless. When balances are creeping up and interest is high, they don’t give a darn that you were out ill for a week and rent is coming due in 3 days. Miss a payment and your interest rate increases. They want you to spend, spend, spend so they can win, win, win. When credit card companies win, you lose.