Don't wait to pay off your debts. Pay on time, every time and creditors will look positively upon you.
When you're moving out of mom and dad's house or you can't find an affordable house to buy, renting is your next-best option. You can rent anything from a studio apartment all the way up to a house and based on a few factors, one or the other might be the best way to go for you.
To decide which way to go, you need to figure out a few things first:
Obviously, the more you can afford, the better your location can be and the better your rental will be overall. In order to figure out how much you should be spending on rent, you should take 25-30% of your gross monthly income (that's your pay before taxes are deducted). So for example, if you are earning $30,000.00 per year (or $2,500.00 per month), you know you shouldn't pay more than $700.00 for rent each month.
Location is everything when it comes to finding a place to live. That's why it pays to figure out what you need to be close to and what you can bear to be distant from. Also, depending on the area you move into, you may not be able to afford rent in certain zip codes, so pay attention. The best way to figure out where your ideal locations are is to pull up a map of the area and put yourself as close to those ideal locations as possible.
If you can cover your rent, bills, etc. all by yourself, you may not need a roommate. However, the place you can afford alone might not be as nice as a place you can afford with roommates. For example, you may be able to afford a $700 one-bedroom apartment alone, while you might be able to afford a nice two-bedroom apartment with $1400. On the flip-side, if you both share the one-bedroom apartment, your $700 gets taken down to $350. It's completely up to you. Or if you trust people enough, you might be able to get a few friends to go in with you on renting a whole house. Renting a house will (in most cases) give you more space and most likely, more bedrooms. The downside to a house is that it generally requires more maintenance.
Now although roommates do make your wallet feel better, it's important to consider several very important things before you sign a lease with them:
Although you may be best friends with your roommates, it's better to be safe than sorry in these cases. No matter how much of a buddy you are with the person (or people), you''re entering into a legally-binding contract with them when you sign a lease. If they can't pay one month and you have to foot the bill, it's likely to cause a rift in the friendship. Not to mention if you default on rent, your credit score will take a beating for years to come. Just make sure to cover yourself before any of this becomes an issue.
Rent is probably your biggest expense but it is certainly not the only expense. Here is a list of things you may need to pay for when renting:
Some of these things might be covered by your landlord (usually trash) and sometimes water/gas. But typically, the rest you'll have to cover on your own and they do add up, so be aware.
So you're done, right? Oh wait, what are you going to sit on, sleep on, etc.? That's right, you need to buy furniture. So when you're thinking about moving into an apartment, condo, house, etc., consider the amount of furniture you'll need to furnish it. Never fear, there are multiple options for you:
Above all else, you should keep in mind that renting, while exciting, is a money hole. Money goes in and never comes back out. What that means for you is that you should leave enough room in your budget to save at least 10% of your income for later on. So do yourself a favor and add up your rent, your bills and other monthly expenses. Make sure you have enough room in there to save for your future.
