Every time you move, it is important to budget for every aspect. When you move, things like utilities, rent amounts, gas, and even food, may change in price. It depends on where you are moving to and from. In any case, it is good practice to recalculate your rent budget before deciding on a new place to live. That’s why Arlington Pads offers this handy Rent Calculator for our users to use for free!
Tips for Budgeting:
- Expenses: Make a list. What do you pay for and on what schedule? Start with yearly, then quarterly, monthly, weekly and so on. These bills might include your phone, utilities, car payments, taxes and more. Anything that absolutely needs to be paid should be listed here. Add this total up and divide it into 12. That is how much money you need to have set aside each month to make sure your bills are paid for the year.
- Lifestyle: How much time you spend at home and with whom is a huge consideration in determining your rent budget as well. It may be that you like to stay home and entertain more, so your rent can be slightly higher. If you like to go out often, then you may want to make sure you have a little more pocket money to spend.
- Research: Make sure your expenses are all correct. Find out the cost of living where you plan on moving. Are there any additional taxes you weren’t aware of? What about community fees if you move into a complex with extravagant amenities? What is the parking situation like? Do you have to pay for parking? Do as much research as you can so you don’t get blind sided by any silly fees or unforeseen expenses down the road.
- The ⅓ Rule: One of the most widely used standards for budgeting for a home is the one-third rule. Allocate one-third of your monthly income to your housing expenses. A simple way to calculate one-third of your monthly income is to divide your yearly income by 36. After you have added up your expenses and estimated rent, does the result add up to more than one-third of your monthly income? If so, you should probably revisit those numbers and find a way to lower them, or consider an apartment with lower rent.
Now that you have all your information gathered, plug your data into the Arlington Rent Calculator and start on your journey to a new home right now!