How To Save Money for an Apartment: 17 Strategies

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Contributor, Benzinga
July 17, 2023

Are you looking to move out of your home or get into a better apartment building? If you are like most people, rent will take up a considerable percentage of your monthly budget. Approaching your apartment ambition with a plan can help you save money on your room and make your living expenses more manageable. This guide will cover several strategies you can use to save money for an apartment and start your new adventure.

1. Understand How Much an Apartment Costs

Knowing what you’re getting yourself into can help you set reasonable expectations and get into an apartment building sooner. Apartment costs depend on factors like location, size and amenities. While rent is the largest expense, you should also plan for electricity, maintenance, Wi-Fi and other expenses. You will also have to incur the costs of living on your own instead of with your parents.

2. Set Clear Goals

A goal gives you direction on your journey to renting an apartment. Many apartment owners may ask for an initial security deposit. If you want to buy an apartment unit, you will also have to come up with a down payment. Identifying clear goals for these costs and any additional expenses can help you move out sooner.

3. Create a Budget

Once you know the costs of an apartment and have a clear goal, you have to fit it into your budget. Reviewing your current income and expenses can reveal opportunities to trim costs and save for an apartment.  

4. Prioritize Saving

It’s not about how much money you make but how much of it you save. Saving a higher percentage of your income will help you get an apartment sooner. You can set mini milestones that keep you focused on the way to your big goal. View your monthly savings as a fixed expense, and commit to the savings goal before using your cash for discretionary spending.

5. Reduce Discretionary Spending

Prioritizing savings means making new commitments for your finances and staying focused on long-term goals. Discretionary spending can get in the way of those commitments, and it’s important to keep them at a minimum. Nonessentials like eating out, shopping and paid entertainment can hinder your ability to save. Many of these nonessentials have cheaper or free alternatives you can try.

6. Minimize Housing Costs

Some people don’t pay for housing because they live with their parents. If you live in an apartment and already pay rent, consider rooming with someone to minimize the monthly payments. Lower housing costs can help you save for a better apartment or a down payment.

7. Automate Savings

Some people set good financial goals and have good intentions, but they forget to save money. Automated transfers to your savings account can solve this problem. Moving money from your checking account to your savings account automatically can remove the temptation to spend extra money.

8. Increase Your Income

Increasing your income is the best way to afford an apartment and save for a down payment. Trimming expenses will help, and this guide still has a few strategies around trimming expenses. You eventually reach a limit on how much you can save. Increasing your income with a career advancement or side hustle gives you extra money that can go into your savings account.

9. Cut Utility Costs

Turning off the lights instead of keeping them on doesn't sound like much, but it can save you money. Consumers can save some money by cutting utility costs, freeing up more money for the savings account. You can also unplug electronics and use energy-efficient appliances to minimize your bill.

10. Save on Groceries

Grocery store visits can get expensive. You may go in for a few things, but other food products may catch your eye. Walking into the grocery store with a list, avoiding snack food, and buying in bulk can help you save money. Regular grocery store visitors can also time their purchases for coupons and discounts.

11. Reduce Transportation Costs

Transportation costs can add up. You have to pay for gas, parking and other expenses. While you have to use transportation to get from place to place, it’s possible to trim those costs. Biking, carpooling, walking and public transportation can all reduce your total transportation costs.

12. Eliminate Debt

Debt can slow you down on your path to meaningful financial goals. Ignoring debt will become problematic as a high-interest rate compounds your balance. Paying off your balances, especially high-interest debt like credit cards, will free up additional cash that can go toward your apartment goals. You can also consider a consolidation loan to get out of high-interest rates.

13. Explore Alternative Housing Options

While you save for an apartment, you can use a temporary living arrangement to put a roof over your head and minimize costs. Aspiring apartment renters and owners can consider renting a room instead of an apartment unit when getting started. Subletting and house sitting can also provide accommodation.

14. Save on Furniture and Household Items

If you are buying an apartment unit, you will have to furnish it with couches, chairs, tables and other household items. Factoring the furniture into your costs can run up the bill, but you can save money with second-hand furniture and waiting for deals. Shopping for furniture smartly can minimize the costs of renting or owning an apartment unit and make it more feasible. 

15. Research Rental Options

Shop around for several apartment units instead of going for the first one you find. Buyers and renters should look at an apartment’s location, amenities, prices and other factors before committing to the unit.

16. Stay Motivated

Buying or renting an apartment unit is a long-term journey. There will be ups and downs along the way, but it is important to keep the long-term goal in mind. Working toward something meaningful and setting mini milestones can help you stay motivated throughout the process. Take the time to celebrate the small wins and acknowledge your progress.

17. Keep Your Eyes on the Prize

It takes patience and self-discipline to save enough money to get an apartment unit. Setting goals, celebrating your victories and tracking your income and expenses can make the goal more attainable. Remember why you want the apartment unit and how saving enough money can help you. This journey can instill effective money habits that help you save money for additional goals, such as a smooth retirement.

Frequently Asked Questions


How much money should I save before moving to an apartment?


It is a good idea to save at least three to four months of rent before moving to an apartment. Saving more money gives you a cushion.


What are some effective strategies for saving money for an apartment?


Minimizing discretionary spending, tracking your expenses and eliminating debt can help you save money for an apartment.


Are there any specific government programs or assistance available for saving money for an apartment?


Qualifying people can use U.S. Department of Housing and Urban Development (HUD) vouchers to pay off a percentage of the monthly rent payments. HUD voucher qualification is based on income level.

About Marc Guberti

Marc Guberti is a personal finance writer passionate about helping people learn more about money management, investing and finance. He has more than 10 years of writing experience focused on finance and digital marketing. His work has been published in U.S. News & World Report, USA Today, InvestorPlace and other publications.