Saving for your first apartment is a significant milestone, but it can become a reality with the right plan. You’ll need to break the process into manageable steps to keep your goal achievable and help you stay on track.
With a clear strategy, using a budget planning app, and consistent effort, you’ll be taking the steps needed to secure your new home.
Understanding your budget
A clear budget is the cornerstone of any successful savings plan — no matter what you’re saving for. By getting a clear handle on your financial situation, you can make informed decisions about where your money goes.
Calculate your monthly income
Knowing your exact income is an essential first step to creating a realistic monthly budget. Start by listing all the sources of money you receive monthly, focusing on your monthly take-home pay or net income — the amount that hits your account after taxes and deductions. Include your salary from your main job and any additional income from side gigs, freelance projects, or investments.
Any irregular income you receive — like bonuses, tax refunds, or gifts — should be handled wisely. You can either average it over the year or allocate it entirely to your apartment fund when the time arrives.
If your income fluctuates (e.g., as a freelancer), calculate an average based on the past 6–12 months to create a steady figure to work with. However, remember to stay conservative in your estimates to avoid budget shortfalls.
Track your expenses
Understanding where your money goes is just as important as knowing how much you earn.
Start by listing and calculating your fixed expenses — your monthly rent payment, utilities, insurance, and loan payments. These are non-negotiable costs that stay consistent each month.
Next, take a look at your variable expenses, which can fluctuate month to month, like groceries, gas, entertainment, or dining out. These are the areas where you’re most likely to find savings opportunities.
To track your monthly expenses effectively, try one of these methods:
Keep a spending journal for a month and record every purchase.
Use a budgeting app to automatically categorize your spending.
Analyzing your expenses can reveal patterns, like how much you spend on takeout or streaming subscriptions. These insights will allow you to cut back intentionally, freeing up more money for your apartment fund. The goal isn’t to cut out all fun spending but to ensure your choices align with your priorities.
Set realistic savings goals
Once you know your income and expenses, you can set specific, achievable goals for your apartment fund. Start by calculating the total amount you’ll need, including:
Security deposit (typically equal to one month’s rent)
First month’s rent upfront
Moving costs (e.g., moving truck rental, packing supplies)
Essential furniture and household items (e.g., bed, sofa, kitchen supplies)
This will all contribute to your overall apartment budget. Break this total into monthly savings targets.
For instance, if you need $6,000 and plan to move in a year, aim to save $500 monthly. Adjust this goal based on your budget. If it feels too ambitious, either extend your timeline or look for ways to boost your savings — like reducing your expenses or increasing your income.
To stay motivated and on track, make your goals specific and measurable. Instead of saying, “I want to save money,” be more specific with “I will save $500 each month for 12 months.”
Remember to stay flexible. Life happens, and your goals might need to shift. The key is to maintain consistent saving habits and celebrate progress, no matter how small. Every dollar saved will bring you closer to your new apartment.
Creating a savings plan
A solid savings plan is the bridge between dreaming of your new apartment and moving in. You can stay consistent and focused on your goal by prioritizing your spending, setting up dedicated accounts, and automating your savings.
Prioritize your spending
To save effectively, start by understanding the difference between essentials and extras. Needs include expenses like rent, utilities, groceries, and transportation. Wants cover non-essentials like streaming subscriptions, dining out, and impulse shopping.
One useful approach is the 50/30/20 rule: 50% of your income goes to needs, 30% to wants, and 20% to savings.
Since you’re saving for an apartment, adjust the percentages — cut back on extras and channel more into your savings. For example, limit your takeout meals or pause any unused subscriptions for a while. Opt for free or low-cost activities, like picnics, instead of pricey nights out. Even small changes, like swapping daily coffee runs for homemade brews, can make a big difference over time.
This doesn’t mean cutting out all your wants — it’s just about being more intentional.
Open a dedicated savings account
A separate savings account for your apartment fund can help keep you on track. It’s easier to avoid spending the money when it’s out of sight. Plus, seeing your progress grow in a dedicated account can be a big motivator.
When choosing an account, look for one with competitive interest rates, low (or no) monthly fees, and no minimum balance requirements. Even a small amount of interest can help your savings grow while you focus on your goal.
For extra accountability, consider picking an account that isn’t tied to your debit card or checking account. Online savings accounts work well for this — they often take a day or two to transfer funds, making impulse withdrawals less tempting.
Automate your savings
Automation is incredibly helpful when it comes to staying consistent. Set up automatic transfers to your apartment fund on payday. This way, saving becomes effortless — it happens before you have the chance to spend.
If your income fluctuates, automate a percentage of each deposit instead of a fixed amount. While small, these contributions can add up over time.
Automation can remove a lot of the mental load that comes with remembering to save, and it can help you build a habit of putting your goals first. Before you know it, your apartment fund will be growing steadily.
Cutting costs to boost your savings
Finding ways to spend less can free up more cash for your apartment fund without overhauling your lifestyle. Here are some practical, straightforward strategies to cut costs and fast-track your savings.
Reduce unnecessary spending
Start by carefully reviewing your recent bank statements and subscriptions. Look for things you’re paying for but barely use — streaming services, fitness apps, or subscription boxes. Canceling or pausing these can quickly make a difference in your disposable income.
Next, take a closer look at your regular bills like internet, phone, or cable. Call your providers or use an app like Albert to lower your bills for you. Find out about discounts, promotions, or better plans for your needs. A quick conversation could save you a lot of money each month.
Even small changes in your everyday habits can help. Turn off lights when you leave a room, adjust your thermostat when you’re out, and set up automatic payments to avoid late fees. These minor tweaks can add up over time.
Finally, when you’re about to buy something non-essential — like clothes, gadgets, or a treat — pause and ask if it’s a “need” or a “want.” Waiting a while before clicking “check out” or finding a budget-friendly alternative can help you prioritize your savings without feeling deprived.
Cook at home more often
Dining out is convenient and enjoyable, but the costs can stack up quickly. Cooking at home, even a few nights a week, could save you hundreds of dollars every month.
Start by planning simple, affordable meals and making a grocery list to avoid impulse buys at the grocery store. Prepping your meals in advance can also help you avoid the temptation of takeout when you’re extra busy.
Bringing your lunch to work is another easy win — spending $10–15 on lunch daily can add up fast and stunt your savings. Swapping just a few of those meals for home-prepared options can make a big impact.
Cooking doesn’t have to mean giving up all your favorite restaurant experiences — it’s just making some adjustments and cutting back where you can. Over time, the money you save can bring you closer to your apartment goal.
Use public transportation
If you drive regularly, costs like gas, maintenance, insurance, and parking can quickly eat into your budget. Switching to public transportation, carpooling, or even biking could help you save over time.
Public transportation is often more affordable, and many cities offer discounts for frequent riders. If that’s not an option, consider sharing rides with coworkers or friends to split costs.
For shorter commutes, walking or cycling can eliminate transportation expenses altogether while adding a health boost. Even small shifts, like combining errands into one trip to save on gas, can help here.
Increasing your income
Boosting your income is another way to fast-track your savings goals, helping you afford your new apartment sooner. By exploring additional earning opportunities, you can grow your savings without making drastic cuts to your current budget.
Take on a part-time job
A part-time job is a straightforward way to increase your income. Look for positions with flexible hours, like evening or weekend shifts, in industries such as retail, hospitality, or customer service.
Seasonal roles, such as holiday retail jobs or summer gigs, can also offer a temporary income boost without requiring a long-term commitment.
If you have specific skills or interests, consider jobs that align with them. For example, if you enjoy teaching, tutoring could be a rewarding option. For fitness enthusiasts, working at a local gym might be a good fit. Whatever you choose, set clear boundaries to ensure the extra work doesn’t overwhelm your schedule or energy.
Make it a habit to direct all earnings from this job toward your apartment fund. By staying disciplined and intentional, you’ll be able to see tangible progress without derailing your daily life.
Sell unused items
You can also turn your clutter into extra income by selling items you no longer need. Start by going through your belongings and identifying items in good condition that you don’t use anymore — think of things like clothing, electronics, books, or furniture. Decluttering will not only help you save money but will also make your eventual move simpler.
Online marketplaces like Facebook Marketplace, eBay, or Poshmark make selling your used goods easy. Take high-quality photos and write clear, honest descriptions to attract buyers. For faster results, consider hosting a garage sale or participating in a local flea market.
The money you earn from these sales can be added to your savings, helping you get closer to your apartment fund goal.
Explore freelancing opportunities
Freelancing can be a flexible and profitable side hustle if you have skills like writing, graphic design, coding, or tutoring. Platforms like Upwork, Fiverr, or local job boards connect freelancers with clients looking for everything from one-time projects to ongoing support.
Identify your strengths and passions and build a simple portfolio to showcase your work. Set clear expectations with your clients and manage your time effectively to ensure freelancing doesn’t interfere with your primary responsibilities. Freelancing income can be unpredictable, so be sure to save a portion for taxes and allocate the rest directly to your apartment fund.
Beyond the financial benefits, freelancing can enhance your skills and expand your professional network. It’s not just a way to earn extra money — it’s an investment in your personal and professional growth.
Staying motivated on your savings journey
Staying motivated is key to achieving your savings goal, especially when challenges arise. Here are some actionable strategies to help you stay focused and excited as you work toward saving for your apartment.
Break it down with milestones and rewards
Reaching a big savings goal can feel overwhelming, but breaking it into smaller milestones can make it more manageable and motivating. For example, divide your target into increments like $500 or $1,000. Celebrate each milestone to acknowledge your progress and keep the momentum going.
Reward yourself, but try to keep your rewards simple and budget-friendly — treat yourself to a home-cooked favorite meal, plan a movie night, or indulge in a small hobby. These celebrations will give you a psychological boost without setting back your savings.
You can also track your progress visually with a chart, spreadsheet, or budgeting app. Watching your balance grow can make your goal feel tangible and keep you motivated. Share your achievements with supportive friends or family for extra encouragement and accountability.
If setbacks happen, don’t dwell on them. Adjust your milestones if needed to stay realistic and keep moving forward. Focusing on small wins will help you maintain momentum and stay committed to reaching your goal.
Visualize your future apartment
A clear picture of your end goal can keep you inspired. Visualize your future apartment and what it means to you. Create a vision board with images of apartments, décor, or neighborhoods that inspire you. This can be a physical board or a digital collection on your phone or computer.
Place your vision board somewhere visible — like your fridge or phone wallpaper — so you’re reminded daily of why you’re saving. Writing down a detailed description of your ideal living space (from the layout to the atmosphere) can also keep you emotionally connected to your goal.
When you face spending temptations, use this vision to refocus on your priorities. Connecting your day-to-day choices with the bigger picture makes it easier to stay on track.
Join a savings challenge
Make saving more fun and interactive with a savings challenge. Whether committing to saving a specific amount weekly, partaking in a no-spend month, or finding creative ways to cut your costs, challenges can add variety to your financial routine.
Join online communities or social media groups where people share tips and progress. Seeing others succeed can inspire you and provide fresh ideas. Many challenges also include tracking tools or apps that can gamify the experience, turning saving into an engaging activity.
You can also get your friends or family involved for added motivation. A little friendly competition or mutual support can make the process more enjoyable. For example, you could collectively agree on a goal or challenge each other to find budget-friendly ways to have fun.
Pick a challenge that fits your lifestyle and doesn’t create unnecessary stress. Reflect on what you’ve learned during the process, and let the new habits guide you closer to your apartment fund goal.
Saving your way to your new apartment
Saving for an apartment is a big financial goal, but it is doable with the right plan and mindset. Start by understanding your budget, building a savings plan that works for you, cutting back on unnecessary expenses, and thinking about ways to boost your income.
Stay motivated as best you can, and lean on the people around you for support. These steps can turn what might feel like a huge challenge into manageable, actionable tasks, helping you move closer to achieving your dream of a new home.
⚡️ Take control of your money — sign up for Albert and start planning for your new apartment with our finance experts.