Latest / Budgeting for Beginners with Fexingo: Cash Envelopes, Apps, and Simple Money Tracking / Budgeting Your First Apartment Without the Surprise Costs
Transcript
- Lucas: So Luna, you just helped a friend move into her first apartment last weekend, right? Luna: I did. And it was a wake-up call, honestly. She had saved for the security deposit and the first month's rent, but she had no idea about the other stuff. Lucas: That's exactly what we're talking about today. The hidden costs of your first apartment. The ones that don't show up on the lease but will absolutely show up in your bank account. Luna: And if you're listening and you're about to move, or even just thinking about it, this episode is your checklist. Lucas: Before we dive in, if this conversation actually helps you plan your move with a little less panic, that's exactly the kind of thing that makes these episodes worth making. And the way we keep this show ad-free is through listener support. So if you found value in today's episode, you can buy me a coffee dot com slash fexingo. Luna: Yeah, that's a simple way to keep these conversations going. No pressure, but if it helps, it helps us. Lucas: So let's start with the classic mistake. You look at the rent, you think that's the number, and you budget around it. But the actual cost of living in that apartment is often 20 to 30 percent higher than the rent alone. Luna: Where does that extra 20 to 30 percent come from? Lucas: Let's break it down with a concrete example. Say you're renting a one-bedroom in a mid-sized city like Columbus, Ohio. Rent is about $1,200 a month. But there's the security deposit, which is usually one month's rent. So that's $1,200 upfront before you even walk in. Luna: And sometimes it's more, like if you have a pet. My friend paid an extra $250 non-refundable pet fee. Lucas: Right. Non-refundable. That's a big one. Then there's the application fee, maybe $50 to $100, and the credit check fee. Some places also charge an admin fee. All those little things add up before you've moved a single box. Luna: And then you have to actually move your stuff. If you're renting a truck, that's another $100 to $200 for the day, plus gas and maybe insurance. Lucas: And if you're hiring movers, that's a whole different budget. But even if you're doing it yourself, you need boxes, tape, packing materials. That's easily another $50 to $100. Luna: What about utilities? Because that's the thing that really caught my friend off guard. Lucas: Utilities are the sneaky recurring costs. You've got electric, gas, water, sewer, trash, internet, and sometimes renter's insurance, which is required. When you have no history at that address, you can't just guess. You need to call the utility companies and ask for the average bill for the previous tenant. Luna: That's a smart move. And some landlords will give you an estimate, but they might not be honest about the winter heating bills. Lucas: Exactly. So the trick is to estimate on the high side. For a one-bedroom in Columbus, electric might be $80 to $120 a month, gas maybe $50 to $80 in the winter, water and sewer around $50, internet $60 to $80. That's easily $240 to $330 on top of rent. Luna: So that's another 20 to 30 percent right there. Lucas: And then there's the first month's groceries. When you move into an empty kitchen, you're buying everything from scratch. Spices, oil, cleaning supplies, toilet paper. That's way more than your usual weekly grocery run. I'd budget an extra $150 to $200 for that first month. Luna: Not to mention basic furniture. If you're starting from zero, that's a whole other conversation. But even if you're just getting a bed and a couch, that's a big hit. Lucas: So let's put it all together. For that $1,200 a month apartment, you might need $3,000 to $4,500 just to move in, when you include the deposit, fees, moving costs, first month's utilities, setup charges, and that first grocery run. Luna: And that's before you've even lived there a full month. Lucas: So the key is to build a move-in buffer. That's a separate line item in your budget. I'd say you want at least two months' worth of that extra 30 percent in savings before you sign a lease. Luna: That sounds like a lot, but it's better than being caught off guard. Lucas: And one more thing. Check the lease for when utilities are prorated. Sometimes you move in on the 15th, and you still have to pay the full month's utility bill. That's another gotcha. Luna: Also, don't forget renter's insurance. It's usually required and it's cheap, like $15 to $30 a month, but you need to set it up before you move in, and some landlords require proof. Lucas: Right. And the one number to check before you sign a lease isn't just the rent. It's the total move-in cost. Ask the landlord or property manager for an itemized list of every fee you'll pay at signing. If they can't give you that, that's a red flag. Luna: That's a great tip. I wish I'd given that to my friend before she signed. Lucas: So the takeaway here is simple. When you're budgeting for your first apartment, don't just look at the rent. Build a move-in budget that includes the deposit, fees, moving costs, first month's utilities, and a grocery buffer. And pad it by 30 percent for the surprises you haven't thought of. Luna: And if you're listening and you've already moved, maybe you can share your own list of hidden costs with a friend who's about to go through it. Lucas: That's a good way to pay it forward. And if this episode helped you plan your move, we're glad. And if you want to support the show, you know where to find us — buy me a coffee dot com slash fexingo.