Budgeting for a First Apartment

On Wall Street, I built businesses by allocating capital with precision. Moving into your first apartment demands the same discipline. With U.S. renters paying an average of $1,957/month (Census, 2023), a clear budget prevents debt and builds financial confidence. Here’s how to structure it.

1. Rent: 30–35% of Income

Golden rule: never overspend here.
Example: $3,000 monthly income → target rent = $900–$1,050.

2. Utilities & Internet: 10%

Electricity, water, Wi-Fi, trash.
Expect $200–$300/month.
Energy-efficient habits cut costs further.

3. Groceries: 10–15%

Average: $250–$350/month for one person.
Cooking at home saves thousands vs. eating out.

4. Furniture & Setup: One-Time 10–15%

Bed, couch, table, kitchen basics.
Budget: $1,000–$2,000 upfront.
Thrift stores and IKEA = high ROI.

5. Transportation: 10%

Gas, insurance, or public transit.
Average: $150–$300/month.

6. Emergency & Savings: 15–20%

Aim for at least 3 months of expenses.
Even $200/month = $2,400/year.

7. Lifestyle & Fun: 5–10%

Streaming, dining out, hobbies.
Keeps the budget balanced and sustainable.

Final Word

On Wall Street, the firms that survived weren’t the ones making the most — they were the ones managing expenses with discipline. For a first apartment, it’s the same playbook: cap rent, track essentials, and funnel savings into your future. Financial control is your first real asset.