When Fernanda Niven and Alexia Leuschen launched their home decor business, they were passionate about finding beautiful, timeless pieces. After two years as a pop-up in Bridgehampton’s gourmet market L’Épicuriste, they’ve hit their stride. “We wanted to sell things that we loved and thought were special and unique,” says Niven, whose fashion background includes a stint with Vera Wang, designing handbags and her own line of sun-protective clothing. “We never wanted people to buy our things just to have them. We wanted them to buy what they love because they’d have those pieces for a long time.”
Shoppers can swing by The Bouwerie after procuring global delicacies for their next dinner party at L’Épicuriste, and pick up items needed to make the soiree really pop. Niven says this summer’s must-haves include little LED lamps that have become popular for both indoor and outdoor at-home dining—The Bouwerie sells them along with fashionable shades, in green, white and neutral. “This summer we have wonderful napkins that we just cannot keep in stock,” Niven says. “They have a pretty fringe, and come in blue-and-white gingham, a bold green and white floral pattern. They make your table come to life.”
Niven and partner Leuschen, a decorator, make some of their own items, such as fireplace screens named after streets in Southampton. The women have been friends for about a decade, and enjoy perusing the internet for unique items to sell, and doing some buying on the road—they both love to travel. “That’s how this business came about,” Nevin says. “We both love finding these little special things around the world.”
When it came to choosing their company’s moniker, the businesswomen liked the Old World spelling of “Bouwerie,” the name of a once-beautiful, now long-gone house in Southampton. To bring it back full circle, they happen to know the grandchildren of the house’s owners. thebouwerie.com
Inside: Are you moving into your first apartment? Planning a move can be daunting, but with this checklist, everything will be ready for your bed and bathroom you arrive. From a mattress, pots and towels to cleaning supplies and furniture, this list has it all. This is a huge deal!
Moving into your first apartment is an exciting time!
You’re finally out on your own, and you get to decorate and furnish your space however you want.
But before you can start shopping for all the cute home décor, there’s one very important task that needs to be taken care of first: creating a First Apartment Checklist.
This comprehensive checklist will ensure that you don’t forget any essential items when furnishing your new place. From kitchen supplies to bathroom necessities, we’ve got you covered.
So what are you waiting for? Let’s get started!
My First Apartment Mistakes
Moving into your first apartment indeed marks an exciting milestone in life.
However, it is also a moment of awakening when realizing that filling the apartment with all the necessities is not child’s play. My lesson learned the hard way.
It requires great planning and acute mindfulness of one’s budget. While the thrill of setting up your own place can easily lead to overspending, it’s important to keep the budget in check and be judicious about your purchases.
Here are some aspects to consider:
It’s easy to forget that there’s a huge list of big and small things you’ll still need to buy to fully equip your space. However, the keyword here is “need” and not “want”. I should have been better at differentiating between what is absolutely necessary for your immediate living situations and what can be procured later.
Define what you can spend right away by considering the moving costs and other related expenses. After setting the budget, the next most important step is to stick with it. You will be tempted to stretch your limit, but remember that financial restraint is key.
Moreover, remember that you don’t need to get everything right away, certain things can wait. Spend wisely, and stick to immediate needs. You might be surprised to find out that some items you thought were essential, in fact, can be comfortably lived without.
Your home is meant to give comfort, not financial stress.
The above statement is a lesson that stick with you for a long while. Keeping track of your expenses and making wise decisions can help establish your first apartment without breaking the bank.
Learn is $5000 enough to move out?
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Big Items for Your First Apartment Checklist
You’re finally out of your parents’ house and ready to start your own life. Congrats!
This is an important step when you want to move out at 18.
Moving into a new place is both exciting and daunting. To help you make sure you have everything you need for your new digs, we’ve put together a first apartment checklist of all the big items you’ll need to buy.
This is where to focus your money or look to find free items.
1. Mattress
Living in your first apartment?
Do not underestimate the importance of a good mattress.
It’s the foundation for quality sleep, which is crucial for your health and daily performance. Investing in one is non-negotiable even if budget is a constraint.
Personally, this. is the one item I would say to buy new! Thankfully you can find affordable mattresses now.
2. Bed Frame & Headboard
You may be tempted to skip the bed frame in your first apartment, but it’s a key piece that offers myriad benefits.
In full honesty, I didn’t get a headboard for my mattress until well after I was married. But, it was one small thing that made me happy.
Popular bed frame options vary in price from $60 for a simple metal frame to over $200 for wooden or upholstered models. Make sure to evaluate your needs and budget before buying.
3. Couch
Your first apartment is exciting, and the right couch can really set the tone. It’s not only a seating arrangement but also a place for relaxing, entertaining, and unleashing your personality.
When setting up your first apartment, you might be conflicted about whether to buy a new couch or look for a used one. Here are some factors to consider:
For those living by themselves:
A new couch can be a significant investment, but it is worth the cost if you value personal comfort, hygiene, and aesthetics.
Utilize discount stores to find quality furniture that is within your budget. A new couch often comes with warranties or protection plans that can give you peace of mind for any potential repairs or damages.
Investigate measurements and delivery options thoroughly to ensure your new couch comfortably fits your apartment layout.
If you are planning to live with a roommate:
You can consider getting a used couch. This is a great way to cut costs during a time when budgeting and saving money are important.
To make sure the couch you’re acquiring is clean and pest-free, buy or get it for free from trusted sources. Friends or family are often the best people to approach when looking for used furniture.
Look into garage sales or online platforms like Craigslist for options. However, always inspect the couch thoroughly before purchasing it from these sources.
Whether you choose new or used, ensure that the couch fulfills your needs.
4. End Tables and Lamps
End tables and lamps are essentials you need in your first apartment. They offer functionality along with a touch of class to your space.
There are many reasons why they should be on every first apartment checklist.
Versatility: Side tables can be used in various ways, from serving as a coffee holder, providing a place for books and magazines, or showcasing photo frames and indoor plants. It can also function as an extension of your workspace when you need to create an impromptu office setup.
Convenience: Having a side table next to your bed or sofa allows you to have important items within easy reach. This may include your phone charger, eyeglasses, or remote controls.
Decorative Value: Side tables contribute to the aesthetic appeal of your living space. They come in different styles, shapes, and designs that can complement various types of interior décor themes.
More than likely with lamps, you will notice where you need them the most after you move. So, it is okay to wait and buy them.
5. Dining Room Table
Your first apartment isn’t complete without a dining room table. It’s the multi-tasking hero of your living space, essential for meals, socializing, and possibly working or studying.
Finding the right dining room table for your apartment can be a fun and rewarding experience. However, it may be daunting for some, given the myriad of options available in the market.
Here’s a step-by-step guide to help you find your ideal fit:
Determine the Size Needed: The first step in finding the right dining room table is to measure the space it will occupy. Knowing the size helps narrow down the options and ensures a comfortable fit. Consider the number of people you plan on hosting on a regular basis – that should dictate the size of the table you need.
Consider the Shape: Dining tables come in various shapes, including square, rectangle, round, and oval. Identifying the shape that suits your space and lifestyle is crucial. Rectangular tables are the most common, but circular ones are great for maintaining an intimate dining experience, while an oval one can be a middle ground between a square and a round table.
Decide on Style: Whether you lean more towards a modern, contemporary, or rustic look, there are countless styles of dining tables to choose from. Ensure that the style of the table resonates with the rest of your home decor for a harmonious look.
Remember, choosing the right dining table is a balance of both form and function. Considering these aspects will surely help you find the dining room table that fits your lifestyle and space.
A good friend of mine had great luck finding a dining room table at a Restore resale shop. Something to definitely check out!
6. Kitchenware
Moving into your first apartment often comes with the challenge of equipping your kitchen efficiently.
To help guide you in making thoughtful purchases without breaking the bank, here are some important kitchen items you should consider investing in.
Basic Cooking Equipment: A Starter kitchen at the bare minimum requires at least two pots and a frying pan. These should be supplemented with necessary cooking utensils like a ladle, spatula, whisk, etc. You also need a high-quality knife set, at least one cutting board, and measuring cups and spoons to help you prepare and portion your meals accurately.
Food Storage & Serving Items: Get microwave-safe food storage containers to store leftovers efficiently. Additionally, invest in a good set of plates, bowls, glasses, and coffee mugs.
Countertop Appliances: While these can be a bit costly, consider getting a microwave, an InstantPot, and a coffee maker. These can vastly simplify and speed up your daily meal prep.
These are the basic items for a minimalistic kitchen.
7. Patio Furniture
Patio furniture can be an excellent cost-effective addition to your first apartment. Often overlooked, patio furniture can provide advantages for a first-time tenant:
Getting patio furniture as hand-me-downs or buying used ones can save you lots of expenses.
Plus patio furniture can be easily refurbished or painted to match your apartment’s interior design. You can showcase your creativity and add a personal touch without spending much.
8. Grill
One must-have in your first apartment is undoubtedly a grill. Nothing beats the flavor of a good grill and it’s perfect for friendly gatherings or quiet evenings.
Having a grill can add a sense of fun and adventure to your living situation. It allows for new culinary experiences and outdoor entertaining, especially during warmer months when you can have a delightful barbecue party in your yard or balcony.
Grilling can also act as a social catalyst. Whether it’s a relaxed summer evening cookout with neighbors or a gathering of friends for a sporting event, grilling can bring people together in a fun and casual way.
Thanks to websites like Craigslist, eBay, and Facebook Marketplace, second-hand grills in good condition are often available locally and at a much lower cost than brand-new grills.
9. Storage Items
Stepping into your first apartment, huh? The organization will be your closest ally.
Crisp and neat storage items can help you stay clutter-free and make your space feel like home.
This is something I would wait to buy until you are in your space and know what you need. There are so many storage ideas and organization items.
10. Decor
Making your first apartment feel like home is both exciting and challenging. Decor plays a crucial role, transforming an empty space into a cozy, personal refuge.
You want the decor to reflect your style, but the cost may be more than you can afford.
Enter thrift shopping for some of your favorite items.
You can always splurge on that one item you want!
How do I prepare for my first apartment?
Getting your first apartment can be incredibly thrilling, but let us guide you through a smooth transition.
Before making any purchases, it’s critical to create a budget that takes into account moving costs and other associated expenses.
Additionally, make a checklist of essential items to ensure a smooth move, but remember to prioritize immediate needs as some items may not be necessary initially.
Being prepared and methodical about your approach can help significantly in making your first apartment feel like home. It’s all about spending wisely and sticking to your plan.
First Apartment Checklist for Bedroom
Ready to move into your first apartment and need help setting up your bedroom?
This checklist will ensure you won’t miss any essentials.
Bed: Choose a full or queen-size bed to maximize space.
Mattress: Select the right firmness for your sleep style. Don’t forget a mattress pad and bedding.
Nightstand: You need this to place essentials like a reading lamp and a glass of water.
Dresser: An essential piece of furniture for your clothing storage.
Lamp: A softer lighting option for your bedroom. Don’t forget light bulbs!
Closet Organizers: Invest in baskets or cloth storage cubes for easy organization.
Desk and Chair: A small workspace if your room allows. Opt for a stool or folding chair to save money.
Remember every space is unique, tailor this list to your needs and budget.
First Apartment Checklist for Kitchen
As you embark on your solo living adventure, setting up your kitchen shouldn’t be a brain tease.
Here’s a lifesaver list of must-haves:
Remember, your kitchen is not just for cooking, but for hosting toasts and storing eats. Cheers to your new apartment kitchen!
First Apartment Checklist for Living Room
When setting up your first apartment living room, remember to shop for these essential items:
A Cool Lamp or Two: Lighting is crucial. Pick unique lamps that add both light and character to your space.
Side Tables: Grab a couple; these provide additional surfaces for decorations or mugs of tea.
Storage Solutions: Think TV cabinets or bookshelves where you can neatly store your belongings.
Extra Seating: More seats for more guests.
Window Treatments: Curtains or blinds not only offer privacy but can also tie a room together.
Decorative Pillows and Throw Blankets: For aesthetics and comfort.
Decor Items: This includes wall art, picture frames, coffee table books, houseplants, candles and vases. Make your space you.
Be smart in your selections, ensuring each item marries functionality with aesthetics. Holistic harmony is key in a living space.
Technology for Your First Apartment
In today’s digital era, modern apartments are nearly incomplete without a range of essential tech items.
These add convenience, entertainment, and a sense of security to your cozy abode.
Smart TV: This is essential for entertainment and relaxation. It can be a source of news, sports, movies, and shows that make your apartment a much more enjoyable living space.
Roku Stick: If you opt for a basic TV, then these devices enable you to stream content like Netflix, YouTube, and Hulu directly to your TV. This is much needed if you prefer digital streaming over traditional network channels.
Computer / Laptop: This is useful for work, learning, entertainment, and communications in the current digital era. It helps you stay connected to the world and perform various tasks easily.
Wifi Router: A Wi-Fi router is a must-have in this age as it provides an internet connection for all your devices. It enables you to stay connected to the world, shop from home, stream entertainment, or work remotely.
Chargers: Chargers for phones, laptops, and other electronics are essential. They keep your devices powered up and ready for use at any moment.
Speakers: They enhance your entertainment experience by providing high-quality sound for music, TV shows, and movies. They can also be useful for work or study, for instance when participating in video conferences or online courses.
Thankfully prices have dropped significantly on TVs since I bought my first one!
First Apartment Checklist for Bathroom
One key area to consider is your bathroom – it’s essential to have all the basis to make your daily routines smooth and simple. Here’s what you’ll need:
Cleaning Your First Apartment
Ready to take that first crucial clean sweep in your very first apartment? Here’s how you’ll nail it!
Start with unpacking your cleaning essentials, preferably even before you start arranging your furniture. This will make it easier to spot dust, stains, and dirty spots that are usually hidden.
Now, let’s dig into your basic apartment clean-up kit:
Honestly, these frugal green items are perfect to keep things clean and on budget.
Things you need for an apartment that you wouldn’t think of
Moving into your first apartment is an exciting milestone, but it’s also full of small details that are easy to overlook.
Some essential items might not make it on your moving checklist, leaving you scrambling on your first day in your new place.
Basic Handyman Tools: A Leatherman or small toolkit is essential for assembling furniture and making minor repairs.
Hangers: You’ll need more of these than you think for your wardrobe.
Extension cords and surge strips: You’ll need these to plug in all your electronics in spaces with limited outlets.
Drawer organizers: Helps keep your belongings categorized and easy to find. Especially important in small spaces where efficient storage is key.
Flashlight: You never know when a power outage may happen. A flashlight is a crucial tool for safety and navigation in the dark.
Batteries: Handy for various gadgets like remote controls, flashlights, and smoke detectors.
First aid kit: Accidents can happen anywhere, and having a first aid kit handy can make dealing with minor injuries easier and more efficient.
Light bulbs: Essential for maintaining good lighting in your apartment. You don’t want to be left in the dark when a bulb burns out.
Matches and/or lighters: Useful not only for candles and gas stoves but also a necessity in case of a power outage.
Pen and paper: Although we live in a digital age, pen, and paper are still handy for jotting down quick notes, lists, or reminders.
Fire Extinguisher: Better to be safe than sorry!
Carbon Monoxide Detector: Extremely important to have in your apartment
Duct Tape: It solves every DIY project – while almost any.
Security Cameras: It bums me out completely to add this to the list, but in today’s society it is a must-have.
Renter’s insurance is instrumental for various reasons
It provides financial protection in case of unforeseen circumstances like theft, damage due to disasters like fires, or liability if someone gets hurt in your apartment.
Additionally, considering the value of electronics, furniture, clothing, and other personal belongings, investing in renter’s insurance helps safeguard one’s possessions, making it invaluable, especially for first-time renters.
How do I budget for my first apartment?
Managing your expenses while moving into your first apartment is crucial since it’s usually an expensive endeavor with many large and small essentials needed to fully complete your home.
Having a budget not only helps you to control your finances effectively but also assists in prioritizing immediate needs, avoiding unnecessary items, and managing moving costs and related expenses.
Step 1: Make a Budget
Budgeting is, unquestionably, a crucial strategy to manage your personal finances efficiently, particularly while setting up a new apartment.
Begin by detailing your annual net income.
Subsequently, list down all your essential expenditures, such as food, household supplies, phone bills, car payments, credit card bills, clothing, transportation costs, internet charges, healthcare expenses, school loans, and entertainment.
Don’t forget to add a section for “miscellaneous” to cover any unanticipated expenses.
Make sure your expenses are less than your income.
While rent will be your biggest expense, you want to make sure you can truly afford the amount without going broke.
If you observe that your expenses are relatively high, it’s time to analyze your spending patterns and cut down on unnecessary spending.
Step 2: Save Money
Saving money and living frugally requires strategic thinking and discipline.
Honestly, the simplest thing you can do is to set aside 20% of your income each paycheck. That will ensure you are on your way to becoming financially independent.
Simply remember, frugal living doesn’t equate to deprivation, it’s about making informed choices to optimize your resources.
The 100 envelope challenge is extremely popular!
Step 3: Start a Side Hustle
Side hustles can be a flexible and rewarding way to supplement your income, and they’ve become much more popular in recent years.
Manage your time wisely and ensure the side hustle is something you enjoy or are passionate about. It should be a source of additional income without causing stress or burnout.
Here are ways to make money online for beginners.
First Apartment Tips
Embarking on the journey of renting your first apartment can be both exciting and daunting, hence having some essential tips can be quite handy.
1. Make a list of apartment essentials
A list of apartment essentials plays a crucial role, particularly for first-time movers.
The benefits and significance cannot be overstated. Here’s why:
Prevents Overspending: Moving into a new apartment is already expensive. There are lease deposits, rent due, utility set-ups, and other hidden expenditures that can easily catch first-time movers off guard. Having a list of apartment essentials can keep your spending in check, ensuring that you only purchase what’s necessary and avoid unnecessary or impulsive purchases.
Minimizes Stress: The task of moving can be overwhelming, and missing essential items only adds to the stress. A well-thought-out list can not only help you keep track of what you’ve already acquired but also what you need to purchase or source.
Ensures You’re Prepared and Organized: By carefully creating an apartment checklist, you’re ensuring that you have everything you need in your new home, from cleaning supplies and toilet paper to the necessary items for your furry friends.
Saves Time: A concise and focused list saves you time by clearly stating what needs to be acquired, allowing you to focus on other important matters related to the move.
Follow this approach, and you’ll have a comfy, well-equipped apartment in no time.
2. Consider your budget
Experts advise rent shouldn’t exceed 25-30% of your income. But, don’t forget to include your other costs like food, bills, loans, etc
Remember, your dream apartment isn’t worth it if it’s a financial nightmare. Think smart, save hard, and enjoy your new home’s comforts without breaking the bank.
Learn the ideal household percentages.
3. Research apartments
Researching apartments requires careful consideration of numerous factors such as the proximity to vital facilities like workplaces, grocery stores, hospitals, and entertainment joints.
Try to physically tour potential residences where possible to examine amenities and gauge the atmosphere of the neighborhood.
Don’t forget to make inquiries and view the apartment personally or through a floor plan, all these will help you make a wise decision.
4. Check apartment listings for features and amenities
When searching for the perfect apartment, consider features and amenities that align with your lifestyle.
If there is a sym space, you could eliminate your monthly gym membership.
Just make sure the cost of the upgraded amenities is worth the price tag.
While checking apartment listings, ensure to evaluate the location, amenities, available space, and physical integrity.
5. Think about the size and layout of the apartment
Understanding the size and layout of your new apartment is crucial before you start styling and furnishing it.
Acquire a floor plan from the apartment management, and if possible, tour the apartment physically to note the positioning of rooms, doorways, hallways, and stairwells. Take measurements of these areas and visualize the kind of furniture and fixtures they can accommodate fittingly, taking into account maneuverability around corners as well.
Moving to your first apartment is exciting, yet demands careful consideration of the size and layout.
6. Look for apartments with good security
When you’re hunting for your next apartment, don’t forget to check out its security features. This is crucial for your peace of mind.
Ensure the apartment is in a safe neighborhood, close to amenities like hospitals or public transport.
Ask if the apartment complex has features like controlled access gates, security guards, and CCTV surveillance.
Check the apartment for proper alarm systems, well-functioning locks on doors and windows, and that fire safety measures are in place.
Verify the cell phone reception inside the apartment for any emergency calls.
Lastly, always ensure that the parking area is secure and well-lit.
Remember, your apartment isn’t just a place, it’s your sanctuary. It should feel like one, too.
7. Make sure you get a good deal
Before signing a lease, it’s crucial to ensure the rent price is a good deal.
According to the U.S. Census Bureau, the median gross rent from 2015-2019 was approximately $1,097 per month.
8. Talk to the management and make sure you understand the rules
Get to grips with your apartment’s rules by thoroughly reading your lease. Take note of any restrictions, and don’t fear to ask for clarifications. Data indicates that understanding lease terms significantly reduces tenant-landlord conflicts.
It is important you understand your lease as it is a binding contract.
First Apartment Checklist PDF
Moving into your first apartment is exciting but daunting. The First Apartment Checklist PDF helps simplify the process.
Take it at your own pace—don’t rush. This is your journey to your new home. Enjoy!
FAQ
Moving into a new apartment can be quite exciting yet daunting. It’s crucial to carefully inspect the space to ensure it meets your needs and is in optimal condition.
Check the overall cleanliness. Despite initial cleaning, apartments often accumulate dust while vacant. Ensure you have cleaning supplies handy to tackle any overlooked dirt or grime.
Inspect the utilities. Ensure the availability of necessary technology setups and provisions for all your electronic gadgets. And make sure no wires are hanging from the ceiling.
Verify the safety features. Always have a working lock on the door as well as a well lit entrance.
Examine appliances. Make sure essential household appliances like washers, dryers, and a dishwasher are provided and in working condition.
The comfort and safety of your new apartment rely hugely on these checks.
When determining how much you should spend on rent, it’s generally suggested that your allotment should be no more than 25-30% of your after-tax income.
For instance, if your yearly income after taxes is $40,000 per year, your rent should be about $833-$1,000 per month.
Keep in mind, this amount should cover:
Your rent
Utilities (unless they’re included in your rent)
Rental insurance
It’s essential to create a realistic budget by considering your other necessary expenses like food, transport, healthcare, and entertainment. If needed, find ways to cut some of these costs to afford your dream apartment.
Now Get Moving with your Apartment Shopping List!
In conclusion, creating and managing a first apartment checklist requires a judicious mix of prudence and patience.
It’s an exciting journey of setting up your first independent space but it’s also a test of properly managing your resources without compromising on your basic needs.
It’s crucial to remember that you do not need to get everything at once, and it’s okay to take your time to gradually fill your apartment.
Remember, be mindful of your budget and prioritize based on your specific needs and preferences.
And don’t forget, you’re not just setting up an apartment, you’re creating your own unique sanctuary.
With patience and careful planning, you’ll soon have an apartment that’s not only functionally equipped but also a reflection of your personal style. The experience, in the end, will prove to be as rewarding as it is educational.
Know someone else that needs this, too? Then, please share!!
When it comes to spending money, there are the needs in life, and then there are the wants. Of course, when it comes to essentials, you need to shell out for a roof over your head, food, healthcare, WiFi, and other essentials. But those enticing wants can open up a world of fun purchases, dining out, travel, and other discretionary expenses.
What is the definition of a discretionary expense? It’s a non-essential outlay of cash. Examples are any spending that is not required or that is driven by individual preference (say, a brand new fully loaded Bronco vs. a used minivan). They’re optional things that you can choose to spend money on or not. Think of upgrading to a new phone because the camera is cooler or deciding to head to the beach for a long weekend. Those are discretionary, for sure.
Digging into the difference between discretionary and essential spending can help you understand and optimize your spending and your budgeting.
Because discretionary expenses are unnecessary, they can be a good place to trim one’s budget and find more funds to use elsewhere. Read on to learn more about these costs and how to manage them.
What Are Discretionary Expenses?
So, how can someone identify discretionary expenses? To do so, it can be helpful to take a step back and consider what a necessary expense is.
Needs are more or less mandatory or unavoidable. For example, housing expenses, like mortgage payments or rent, are things a person can’t do without.
Most workers have to pay federal and state taxes on their work income. People with outstanding debt are generally expected to make monthly payments. And, in everyday life, food (aka groceries) and fuel (aka gas or public transit) are typically must-haves.
Some of these necessary expenses will still be variable, changing every month. For example, an electricity bill may go up and down depending on how much time is spent at home and the season of the year.
However, the wants of life (or what some people may call the fun stuff) are those expenses paid from your discretionary income. They reflect the goods and services that may not be vital for survival but that people frequently spend money on.
Types of Discretionary Expenses
What are discretionary expenses exactly? Here’s a list of some common ones to consider.
• Eating out: Your everyday meals are a necessity, but when you grab a pricey green juice to go, take a seat at the sushi bar, or join friends for drinks on a Friday, those are discretionary expenses.
• Grooming services: Soap and shampoo may be musts, but massages, manis, facials, and the like are luxuries. Same goes for sending your furbaby to the doggie spa.
• Entertainment: Concerts, movies, comedy shows, and plays can be wonderful experiences. Though you may argue that Taylor Swift or Beyonce tickets are necessary for survival, these are discretionary spending in truth.
• Media: Books, streaming platforms, magazines, and the like are also discretionary expenses.
• Subscription boxes: Do you have wonderful things turn up on your doorstep regularly as part of a subscription? Whether makeup samples or snacks of the world, these don’t count as needs but wants.
• Gifts: Sure, you love treating your nearest and dearest, but splashing out on gifts is optional and therefore a “want,” not a need. Same for holiday trappings, like that high-priced chocolate pecan pie from your favorite bakery.
• Travel: While the “I need a vacation” sentiment runs strong, taking a trip is considered a discretionary expense.
• Clothing: Some clothing (such as items you wear to work) may be rightly considered needs, but when you buy cute shoes on sale just because, well, they are so cute, that is a “want.”
Understanding Needs vs. Wants
Are you seeing a pattern here? Any expenses beyond core costs are considered discretionary; it’s a matter of needs vs wants. Typically, discretionary costs reflect wants. They aren’t needed for a person to function in day-to-day life. Rather, they have more to do with lifestyle.
Broadly, discretionary expenses could include vacations, entertainment, luxury items, eating out in restaurants, and electronic gadgets.
Exactly what constitutes a discretionary expense isn’t always cut and dry. As with any personal choice, there’s likely a significant element of subjectivity.
• As mentioned above, while food is generally thought of as a necessary expense, some types of eating are actually discretionary. Eating at restaurants is avoidable and often more expensive than making food at home. Buying luxury ingredients at the grocery store (ahem, imported cheeses) can be more costly than sticking to pantry staples.
• Similarly, clothing, in many instances, is a necessary expense. If a person lives in a cold climate, owning an insulated winter coat is a legitimate need. (Without one, the person could risk their health or well-being).
Still, there’s tons of variation in the price of winter coats. Choosing to buy a utilitarian coat often costs much less than buying a designer jacket.
Even within the categories of essential expenses, individuals can exercise their discretion to save money.
💡 Quick Tip: Don’t think too hard about your money. Automate your budgeting, saving, and spending with SoFi’s seamless and secure online banking app.
Budgeting for Discretionary Expenses
Tracking discretionary expenses is key in case times get tough or a person wants to make a budget or tighten theirs up. When planning for future financial goals, like saving up for a mortgage down payment, finding places to pare back can add up.
Tracking discretionary expenses can help with making or paring back budgets.
One of the most important strategies for tracking discretionary spending is creating a household budget. Budgeting may help individuals to ensure there’s enough money to cover necessary expenses and bills. Once those needs are covered, it’s possible then to set the remaining money aside for discretionary spending.
Advantages of Budgeting for Expenses
Consider these reasons why budgeting for expenses can benefit you:
• Avoid overspending: When you have a budget, you have guardrails. You know how much money you have coming in and how it’s allotted. You know that if you spend too much, you could wind up with high-interest credit card debt, which can be challenging to pay down.
• Paying off debt: With a budget for your expenses, you can likely rein in spending and focus on putting dollars toward wiping out high-interest debt.
• Saving for your future: If you follow a budget and don’t go overboard with discretionary spending, you can likely funnel funds toward important short- and long-term goals, such as buying a house or paying for your child’s college education.
Tallying Monthly Income and Earnings
To start building a monthly household budget, tally up total monthly income after taxes. Be sure to include all sources of income, such as:
• Salary
• Any money made from freelance or side gigs
• Passive earnings, such as rental property income or dividends.
Understanding Regular Non-Discretionary Expenses
Next, a would-be budgeter might want to write down all necessary expenses and add up their associated costs. Some regular expenses could vary from month to month. So, it might be helpful to go back and look at costs incurred every month during the last year. This way, it’s easier to average the amounts that get spent on X, Y, and Z essential costs.
Whenever budgeting, it’s important to determine whether incoming money can cover both regular and surprise costs. Ideally, an individual would have enough money saved or in income to pay for all necessary expenses.
Setting Aside Funds for Later
On top of short-term expenses, some budgeters like to allot amounts each month either to savings or to a rainy day fund (you’ll learn more about the actual amount in a minute). With some money management accounts or retirement plans, users can directly deduct funds from a paycheck on payday.
Automating savings might cut the temptation to shop, as these funds are already transferred to another vault or account (and, hence, harder to spend).
If money isn’t being auto-saved, budgets can be updated to include savings under the discretionary fund category. Over time, as savings grow, squirreled away funds could go toward pursuing long-term financial goals, such as a home down payment, starting a kid’s college fund, or investing for retirement.
Tabulating a Discretionary Expense Budget
Once essential expenses have been budgeted for, a list of discretionary spending costs can be drafted. This can cover broad categories that might include trips, entertainment, savings, or eating out.
When either income drops or the cost of a necessary expense goes up, it can be necessary to update one’s budget accordingly. Making cuts to discretionary expenses may be one place to find more cash.
Budgeters could rank, for instance, their discretionary spending according to what’s least or most important. A food lover, for instance, might want to allot more to dining out than an avid skier.
With discretionary expenses prioritized and mapped out, it can be easier to tighten a budget, identifying easier-to-cut-back-on items.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Budgeting Strategies That Include Discretionary Expenses
There are a variety of different budgeting methods. And, some are particularly suited to tracking discretionary spending. Here’s a look at common budgeting strategies:
The 50/30/20 Rule
The 50/30/20 rule was popularized by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth. The idea behind this strategy is that monthly income is divided proportionally between three categories:
• 50% goes to essentials, or needs
• 30% goes to discretionary spending, or wants
• 20% goes to savings.
This strategy prioritizes savings, removing it from the category of discretionary spending and making sure it’s part of every month’s budget. This budgeting strategy takes a broad view and can be good for people who are easily overwhelmed by tracking details.
Line-item Budgeting
For those who love to dive into the nitty-gritty details of spending habits, line-item budgeting might be a better fit. Line-item budgeting can involve breaking out a spreadsheet, examining expenses in fine-toothed detail.
For example, rather than simply having a broad category for all groceries, a line-item budget could break down how much gets spent on buying meat, vegetables, dairy, bread, prepared foods, and coffee. Naturally, the more details that are tracked, the more information a budgeter has on exactly where their money is going.
Line-item budgeting can show the nitty-gritty of personal spending habits.
There may even be pockets of “essential” spending — for instance, the types of groceries being bought — that could be pared back. Rather than helping a person to allocate funds, a line-item budget focuses on tracking spending.
It can also help people to compare their spending habits over extended time periods, such as a month or a year.
Making comparisons in this way can help keep spending in line with previous months. Because line-item budgeting is a spending tracking system, it doesn’t necessarily help build toward goals, like savings or retirement. It’s not designed to cut costs.
Envelope Budgeting
Envelope budgeting can be a useful way to track discretionary spending for two reasons: 1) It’s tangible, and 2) it’s strict.
When using the envelope method, a person writes down their discretionary spending categories on individual paper envelopes. Next, they decide how much they’re willing to spend in each category.
To limit the urge to spend beyond the budget, only the allotted amount is placed as cash in each envelope. Afterwards, just the cash in that envelope is used to make purchases within that category of expenses. The idea is to train oneself to avoid using debt or credit cards, which can encourage impulse spending.
And here’s the rub: Once the cash within a given envelope has run out, it’s gone. You could borrow from another envelope if that has some available cash. But most envelope budgeters strive not to spend beyond the predetermined funds.
So, if the entertainment fund has run dry, then it’s Netflix at home instead of going out to the movie theater. And, if a person blows through their eating-out budget, it could be fun to do a refrigerator sweep. Often, a tasty meal can be whipped up with groceries that have already been purchased.
Though this budgeting approach may sound harsh, it can provide stricter guardrails that help individuals to spend within their means.
For some, adopting this “tougher” approach to budgeting can help reinforce tighter spending habits.
Zero-Based Budgeting
Zero-based budgeting is another way to track spending. The idea behind this budgeting strategy is that every dollar of income has a designated role and can be assigned as an expense. In this way, one’s income minus expenses equals zero.
Zero-based budgeting can take a little bit of extra work, since individuals would need to sit down at the start of each month to assign exact dollar amounts to necessary expenses, discretionary expenses, savings, and other costs.
With zero-based budgeting, the goal is to stick within the dollar amount assigned to each expense. Budgeters seek to stop spending in each category when the allotted dollar amount gets spent.
Still, it may not always be possible to avoid running over the anticipated budget. In those cases, the amount spent in excess of the budget could be subtracted from discretionary funds in the next month. Or perhaps the budgeter may want to allocate more funds in the future for discretionary categories.
💡 Quick Tip: If you’re faced with debt and wondering which kind to pay off first, it can be smart to prioritize high-interest debt first. For many people, this means their credit card debt, so try to eliminate that ASAP.
Tracking Discretionary Spending with a Budget
One part of adopting a budget is finding a tracking system that works for the long haul. So, when figuring how to track spending, it can be helpful to go with the approach that fits individuals’ financial goals and habits.
Online budget tracking tools are one way to help make sense of spending. There are plenty on the market, and your bank may well have tools for this purpose.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with up to 4.50% APY on SoFi Checking and Savings.
FAQ
Is clothing a discretionary expense?
Clothing can be a discretionary expense if it’s not a necessity, such as a warm winter coat or basic clothes to wear to work. When you buy something just because you like it but don’t need it, that’s a discretionary expense.
What are discretionary expense examples?
Examples of discretionary expenses include travel, entertainment, and eating out.
What are examples of non-discretionary expenses?
Non-discretionary expenses are typically the needs or musts of basic life, such as housing and utilities, food, healthcare, transportation, and minimum debt payments.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
The cost of living in Minnesota sits within range of the national average, but just below. This affordable state is not only beautiful but an ideal spot for outdoor enthusiasts. From hiking and biking to every kind of water-based activity possible, you’re able to keep busy without setting a foot inside.
Add to that some great cities and small towns, friendly people and delicious food, and you’ve got a state that’s really the complete package.
The question, then, is can you afford to live in Minnesota? To figure that out, it’s best to break down all the elements that make up your total cost of living to see if everything fits into your budget. That means looking at:
Minnesota housing prices
Housing throughout Minnesota varies enough to give you plenty of options when needing to find your most affordable city. With numbers all below the national average, though, it’s not too much of a struggle to locate the perfect place to live in Minnesota.
Mankato
The great thing about Mankato is it feels like a small town, but has all the amenities of something a little bigger. The neighborhoods are cozy, but the city’s parks, rivers and hiking trails provide ample activities year-round. This means hitting your favorite lake to waterski in the summer and then, returning to ice fish in the winter. Home prices are also incredibly affordable at 25.2 percent below the national average.
Both apartment rent and home sale prices are on the more reasonable side in Mankato. The average rent in the city is $1,078, and the median sale price for a home in Mankato is $337,000. Home prices are rising though, up 38.8 percent over last year.
Minneapolis
Though the cost of living in Minneapolis is the highest in Minnesota, home prices here are still below the national average by 6.8 percent. This means there are so many great neighborhoods here to consider as your next home.
Situated right across the river from St. Paul, Minneapolis has amazing food, a great craft beer scene and a strong job market. The city shares many of its professional opportunities with its neighbor and combined, the two cities are home to a large number of Fortune 500 companies.
Rent prices here are also taking a downturn, with one-beds dropping 4 percent and two-beds down by 8 percent. Rent remains reasonable, although more expensive than any other Minnesota city on our list. Your average one-bedroom apartment costs $1,265 per month, and a two-bed apartment goes for an average of $1,595 per month.
Just as in St. Paul, home prices in Minneapolis are rising, but only barely. The median sale price in Minneapolis is $359,900, up 5.9 percent over last year.
St. Cloud
Considered a family-friendly community, St. Cloud offers up a stable economy, small-town comforts and popular events for every age, all year-round. Housing ranges from quaint bungalows to modern lofts with a few historic buildings tossed in there for good measure. What’s even better is that home prices are 17.9 percent below the national average.
This means low rent overall, even though certain units are seeing some serious growth when it comes to price. Although one-bedroom apartments are only up a single percent over last year, two-bedroom prices have increased by 17 percent. However, even with this growth, the average two-bedroom apartment rents for only $927 per month. One-bedroom apartments average out at $704 per month.
Home prices are almost the same, dropping in price only by 0.65 percent over last year. The median home price in St. Cloud is a reasonable $231,000.
St. Paul
As Minnesota’s capital city, St. Paul provides year-round outdoor fun alongside excellent job opportunities and affordable living. With water sports in the summer and skiing and snowboarding in the winter, you’ll always have a reason to get outside. To get a good dose of city life, stroll down Grand Avenue to wander into all the shops and restaurants along this historic strip. All of this is just the tip of the iceberg as to what makes St. Paul special, but even better, home prices are 8.2 percent below the national average.
When it comes to renting an apartment in this perfect town, rent prices are actually going down. Slipping at about the same rate, one-bedrooms saw a 14 percent drop over last year, and two-bedrooms went down by 13 percent. This keeps rent prices at a decent rate. The average one-bedroom apartment rents for $1,270 per month, and a two-bedroom is averaging out at $1,587 per month.
Home prices are going up, but just barely. Prices rose only 4.6 percent over last year. The median home price in St. Paul is $295,900.
Minnesota food prices
The cost of living in Minnesota is relatively reasonable, but food prices are actually on the higher end of the scale. Not every city is above the national average, but a few are.
St. Paul is 5 percent below the national average
Minneapolis is 2 percent below the national average
Mankato is 8.6 percent above the national average
St. Cloud is 13.9 percent above the national average
This aligns with shopping trends throughout the state, where the average Minnesotan’s monthly grocery bill is between $233 and $267. Now, what’s on that shopping list definitely impacts price. This can include ingredients to make your own Juicy Lucy or Tater Tot Hotdish. It could also mean splurging on a nice Walleye fillet. Regardless of what’s on your list, it’s good to know that ground beef is the most expensive in St. Cloud, but you’ll get the best deal on potatoes (for tots) in Minneapolis.
Minnesota utility prices
Winters in Minnesota are rough, which means your heater will work hard to keep your home warm and comfortable. The season is below-freezing temperatures and lots of snow. Heavy snowfall happens over a long season, from November to April, and the average number of annual blizzards is two.
Although winter is extreme, summer isn’t too bad. It’s hot and humid, but temperatures linger in the mid-80s. Your AC will run all summer long, but not to as big of an extreme as that winter heater.
As a result of this weather, utility prices can get high, however, overall, you’ll pay about the same as what’s average across the country.
Mankato is 3.7 percent below the national average
St. Cloud is 3.3 percent below the national average
St. Paul is 2.3 percent below the national average
Minneapolis is 1.1 percent below the national average
These close averages keep monthly energy bills in a very tight range. On average, expect to pay between $165 and $174 per month.
Minnesota transportation prices
Even with severely cold winters, certain cities in Minnesota are highly walkable. Minneapolis has a walk score of 75, and St. Paul’s is 61. Mankato and St. Cloud aren’t as walkable, but every city has a decent bike score, meaning Minnesota as a whole is pretty bike friendly.
This ability to get around by bike and on foot may positively impact transportation prices, making this particular expense in your cost of living in Minnesota below average. Of course, this isn’t the case everywhere.
Mankato is 7.7 percent below the national average
St. Cloud is 1.1 percent below the national average
St. Paul is 1.5 percent above the national average
Minneapolis is 4.8 percent above the national average
Public transportation, and owning your own vehicle, are most likely the two major contributors to your overall transportation expenses. Cars can cost a lot when you factor in maintenance, gas and paying for parking. Public transportation is a way to save a little money, even if you only use the service to commute back and forth to work during the week.
The METRO
Because the two cities are so close together, public transportation for Minneapolis and St. Paul combine through the METRO. The light rail, consisting of a blue line and green line, encompasses both cities. The blue line stays within Minneapolis, but the green line goes across the water.
The METRO also runs plenty of buses, a few rapid transit lines and a commuter rail. Fares vary based on time of day, so you’ll pay more during rush hour, which is from 6-9 a.m. and 3-6:30 p.m. Monday-Friday. Each fare is good for 2.5 hours. For local bus services, the non-rush hour fare is $2, and it’s $2.50 during rush hour. Six-hour passes are also available with a weekday rate of $4.50 and a weekend rate of $4.
The METRO bus also pops up in St. Cloud. Here there are 17 different routes that cross the city with a single-ride fare of $1.25. You can buy a variety of passes, as well from anywhere between $4.25 for a day pass to $47 for a monthly pass.
Mankato Transit
Operating its own transit system, the bus service in Mankato consists of eight routes that cover the entire city. This includes stops at Minnesota State University, Mankato. A single-ride fare is $1.50, but frequent rider passes are available in one-, 15- and 30-day passes. The monthly pass is $40 and is the best deal.
Minnesota healthcare prices
Healthcare prices in Minnesota can get high. Most cities are above the national average, and since this piece of your cost of living can include multiple doctors, there’s no way to know where the big bills will come in. Could it be a doctor’s visit, a trip to urgent care, the dentist or an eye doctor? What about those medications? Hopefully, your medical needs will stay affordable, but where you live could make the difference.
Minneapolis is 1.6 percent below the national average
St. Paul is 2.2 percent above the national average
Mankato is 2.9 percent above the national average
St. Cloud is 25.2 percent above the national average
As the most expensive when it comes to an average doctor’s visit, costs in St. Cloud reach $200.13. This is almost $50 more per visit than the least expensive city, Minneapolis. In fact, St. Cloud hits the top for an eye doctor visit and a dentist trip, although the price differentials aren’t as large.
Minnesota goods and services prices
Most cities in Minnesota hit above the national average when it comes to goods and services. These are all the items you put on the monthly budget that you could do without in a pinch. They include social activities, like grabbing a burger with friends, and maintenance tasks, like getting your hair cut.
The more items you have in this category, the higher your cost of living in Minnesota goes. Can you do without any if you had to?
Mankato is 4.8 percent below the national average
St. Paul is 5.3 percent above the national average
Minneapolis is 5.9 percent above the national average
St. Cloud is 6.5 percent about the national average
To decide if some budget cuts are necessary, based on these averages, it’s best to look at how much individual goods or services cost in each city. These are a few popular ones.
Although St. Cloud has the highest average when it comes to goods and services, it’s rarely the highest priced individually. Instead, that honor shifts based on what specifically you’re looking for. Minneapolis is the most expensive place to take a yoga class, and St. Paul has the highest haircut prices. When it comes to a burger, you’re going to pay the most in Mankato. Every city has its own pluses and minuses when it comes to pricing out all your bonus activities.
Taxes in Minnesota
Minnesota has a graduated income tax that hits four specific rates based on your income. You’ll either get taxed at 5.35 percent, 7.05 percent, 7.85 percent or 9.85 percent.
Sales tax in the state is a little less complex. Minnesota has a statewide rate of 6.875 percent. Localities are able to add an additional 2 percent to that total. At the maximum, for every $1,000 you spend shopping, $88.75 goes toward taxes.
Most cities don’t max out their sale tax.
St. Cloud is 7.625 percent
St. Paul and Mankato is 7.875 percent
Minneapolis is 8.025 percent
These rates align pretty closely with the average throughout Minnesota. Across the entire state, the combined average sales tax is 7.49 percent.
How much do I need to earn to live in Minnesota?
When analyzing the cost of living in Minnesota, being able to afford rent is at the top of your list. It will most likely be your biggest expense, and one that’s ongoing, at least until you decide to buy a property and pay a mortgage.
To calculate how much you’d need to earn to afford rent, you can refer to the experts. They suggest that 30 percent of your household income goes to this cost. With the average rent in Minnesota being $1,304, you’d need to make at least $52,160 for all the numbers to align.
The good news is the average household income in Minnesota is $74,593, so you’re well on your way to affording an average apartment, or even one with a few extras. To be sure, though, you can plug your specific information into our rent calculator.
Living in Minnesota
With all those lakes and the Mall of Americas, there’s really nothing that isn’t contained within Minnesota. As a great place for business, you can work hard, shop hard and hit nature hard all without going too far from home. What’s even better is that all this is pretty affordable.
The cost of living in Minnesota makes it accessible to most, but in order to figure out if it will work for you, make sure to take a close look at your own budget and must-haves. You may even find your ideal Minnesota city in the process.
Related articles:
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Three years ago, I decided to get out of debt. I hit the books, reading one personal finance title after another, searching for answers. Two books — Your Money or Your Life and The Total Money Makeover — were perfect for my situation. They gave me the tools I needed to tackle my problems. Now I’ve found a third book that would have been useful at the start of my journey to financial freedom.
All Your Worth: The Ultimate Lifetime Money Plan, published in 2005, was written by the mother-daughter team of Elizabeth Warren and Amelia Warren Tyagi. These women don’t get bogged down in the details of frugality and investing. They’re more interested in changing behavior, in fixing the big stuff. They offer a framework around which the reader can build lasting financial success.
A Balanced Budget
Though Warren and Tyagi would have you believe that their system is different from anything that’s ever been published, it’s not. It puts a different spin on things sometimes, but ultimately their advice is similar to that found in most other solid personal finance books. All Your Worth is about creating a budget.
So what is the secret to riches? Why do some people get ahead, while others constantly struggle? Our research led us to a very simple and incredibly powerful financial principle that you won’t hear anywhere else — balance…When your money is in balance, you always have enough to pay your bills, have some fun, and save for your dreams.
When the authors write about balance, they’re writing about budgets. In order to succeed financially, Warren and Tyagi believe you need keep three broad areas of your finances “in balance”. They say to:
Allocate 50% to Needs (which the authors call Must-Haves). Needs include housing, transportation, groceries, insurance, and clothes you really need.
Spend 30% on Wants. Wants include cable television, clothing beyond the basics, restaurant meals, concert tickets, comic books, knitting supplies, etc.
Set aside 20% for Savings, including debt repayment.
Warren and Tyagi want you to save a lot and have fun. To achieve this, they encourage you to reduce your Needs. In fact, this is the cornerstone of their advice.
Needs: Count the Dollars, Not the Pennies
Unlike many personal finance authors, Warren and Tyagi tend to be anti-frugality. They don’t believe that is pays to skimp on the things that bring you pleasure. They advocate saving money on the most expensive things so that you can still afford your morning coffee.
Here’s a little secret that other financial books won’t tell you: Savvy money managers don’t spend a lot of time looking for ways to save a few pennies. They charge right ahead to the big-ticket items, looking to make high-impact changes in the shortest period of time. They don’t sweat the small stuff. And neither will we.
Warren and Tyagi believe that most people get the big stuff wrong, and that if this can be corrected, then quick and drastic improvements can be made. They don’t think you should shop for generic toothpaste, rinse out your ziploc bags, or make your own laundry detergent — they think you should focus your attentions on getting the most favorable mortgage possible (on a house you can actually afford), ditch long-term contracts, and look for ways to save on other big-ticket items.
If you can get the big stuff right, if you can cut your costs on your Needs, then you should be able to reduce spending in this area to below 50% of your take-home pay. If you blow your budget here, though, it makes everything else more difficult. Suddenly you don’t have enough money to save or to purchase the things you want.
Wants: If You Can’t Afford Fun, You Can’t Afford Your Life
If you’re practicing balanced spending for your Needs, the All Your Worth plan allows you to spend 30% of your take-home pay on whatever you want. Do you want to eat out ever night? Do you want to buy comic books? Do you like to have a closet full of shoes? Have you been wanting to take a trip to Italy? Do you long for a deluxe widescreen high-def plasma television with 250 channels? Whatever you want, you can have, as long as you don’t spend more than 30% of your money on it.
Warren and Tyagi say that you shouldn’t worry about what you buy with your Wants money — you should worry about how you spend it. People get into trouble when they pursue their Wants without regard to the other aspects of a balanced financial life. To keep from danger, the authors suggest:
Set clear limits. Stick to your budget. Know how much you can afford to spend on your Wants and do not exceed this amount.
Use cash. Cash will prevent you from overspending, and will safeguard against problems with credit cards. One way to make this work is to withdraw your 30% Wants budget in cash at the start of every month. When the cash runs out, you’re done with your Wants.
Beware of emotional spending. I wrote about compulsive spending a couple weeks ago. Warren and Tyagi warn that this sort of behavior can throw things out of balance.
In many ways, allocating 30% to Wants is revolutionary. I’ve looked at a number of suggested budgets lately, and none of them allocates this much for fun. So long as you keep other aspects of the All Your Worth plan in balance, you really can have this much to spend as you please.
Savings: Build Your Dreams a Little at a Time
The final step in the All Your Worth plan is to save and invest 20% of the money you earn. Despite the authors’ claim that they couldn’t find any other good personal finance books, they seem to have cribbed this portion of their plan directly from Dave Ramsey. They recommend the following steps for your saving and investing budget:
Save a $1,000 emergency fund.
Repay your debt, starting with the debt that bothers you most.
Bolster your emergency fund to cover six months of Needs.
Begin saving and investing for wealth.
Once your debt is repaid and you have set aside money for emergencies, you should begin investing for your future. The authors divide the 20% Savings budget as follows:
Save for retirement by investing in index funds. (10%)
Pay down your mortgage (or save for a home). (5%)
Save for other goals, such as purchasing a car or taking a vacation. (5%)
I like this idea, and intend to use it myself, but with some modifications. For example, in 2008, Roth IRA contribution limits rise to $5,000. That’ll be more than 10% of my monthly take-home pay, so my retirement contribution percentage will be higher than the All Your Worth plan.
Conclusion
The book fleshes out each of these ideas in greater detail, and includes chapters on buying a home, relationships and money, and “financial CPR” — how to handle things when times get rough.
I like All Your Worth. Its advice is solid. It does a great job of looking at the Big Picture, allowing each reader to fill in the details. But the book does have some flaws:
I don’t like the repeated condemnation of frugality and thrift. I think they’re important.
The authors claim their advice is different from other personal finance books, but it’s not. Their advice is excellent but it is not new.
Warren and Tyagi sometimes make wild assumptions, such as a 12% annual stock market return.
These problems aren’t severe — just annoying.
If you’re struggling with debt and looking for a plan to get things right, then borrow this book from your public library. For those who complain that most financial advice — including that at Get Rich Slowly — is geared too much at the middle-class, and isn’t appropriate for those who earn less and who are struggling, All Your Worth may offer some answers.
Over the years, beauty influencer and content creator Desi Perkins has shared everything from home decor tips to pregnancy details with her more than 4.4 million Instagram followers and her 3.2 million YouTube subscribers. But it was a how-to video about naturally covering up blemishes that inspired her to venture beyond the screen.
“Everyone struggles with skin issues, so showing natural solutions and a healthy skin regimen really resonated with my audience,” Perkins explains. “I quickly realized that I was hooked on skin care and would someday create a line.”
She launched Dezi Skin in April 2021. And although the brand is aimed at all skin types and tones, it specializes in ingredients based on her Mexican heritage. “I believe the best ingredients are from the land, and Mexico has an abundance of natural resources that have been used for centuries in traditional remedies,” she says. She notes that a “Dezi Fruit Juice” blend — a mixture of Mexican plum fruit, dragon fruit, acai berry, tamarind, mango, soursop, guava and avocado — is included in every product.
Dezi and Dezi Skin shares her beauty essentials with CNN Underscored.
Perkins shares that she’s been using this soft (and super-affordable!) matte lip cream for years to achieve that perfect, creamy-colored nude lip. “It’s really high on my list,” she says. Each of the brand’s 18 pigments is named after a cosmopolitan city. Her go-to shade? London.
Related: The 20 best red lipsticks of 2023, according to experts
The overnight moisture sleep mask — infused with a fruit extract combo and vitamin C — tightens and revitalizes skin for a radiant complexion in the morning. “It’s especially great before a big event because the results are pretty instant,” she says. “I sleep with it and wake up with plumper and hydrated skin.”
Related: The 16 best peptide skin care products for plumper skin
Officially, this toxin-free gel is designed to leave curls soft, shiny and crunch-and frizz-free. But Perkins says she squeezes a dab into her palm and uses it in “multiple” ways. “It’s my absolute favorite to get that slicked-back look,” she says. It’s also the secret ingredient to her sleek updo style.
Related: The 20 best air-dry creams for frizz-free hair, according to experts
Perkins keeps fresh with an antiperspirant free of aluminum salts, parabens and baking soda. (Her preferred scent is a blend of eucalyptus, spearmint and cedarwood.) “It actually works,” Perkins says.
Perkins raves that this mascara is “the best on the market.” For starters, “it has a small brush so it gets into every lash and it does not transfer onto the lower lash line,” she says. The smudge-proof, carbon black formula is also sweat and humidity resistant, washable with warm water and can last for up to 16 hours.
Related: 19 smudge-proof mascaras, according to experts
Good to the last drop: The refreshing and invigorating aroma from this herb brings a cooling sensation to the skin when applied topically and can help revive depleted energy when inhaled deeply, among other benefits. Perkins says she keeps a bottle of the oil in her purse. “It helps me with nausea and migraines.”
“It’s the fastest and easiest way to get those perfect waves in my hair,” Perkins says of this 1.25-inch, ceramic-coated triple-barrel tool, which creates a crease-less tousled style. It’s also easy to pack, thanks to a removable handle.
Related: The 15 best heat protectant sprays, creams and oils for all hair types
The average 30-year fixed-rate mortgage sank 10 basis points to 2.78% for the week ending on July 22, continuing several weeks of declines, according to mortgage rates data released Thursday by Freddie Mac‘s PMMS.
According to Sam Khater, Freddie Mac’s chief economist, concerns about the COVID-19 Delta variant and the recovery from the pandemic are taking their toll on economic growth.
While the economy continues to mend, Treasury yields have decreased, and mortgage rates have followed suit, said Khater. “Unfortunately, many homebuyers are unable to take advantage of low rates due to low inventory and high prices.”
While prospective homebuyers face a tough market, Khater added that declining mortgage rates give homeowners the chance to refinance and reduce their monthly payments.
Mortgage rates have mostly remained below 3% this year, despite predictions that they would return to higher levels earlier. Economists and investors are closely monitoring any indication from the Federal Reserve that it may begin tapering of mortgage backed securities and bond purchases.
The Mobile “Must-Haves” Reshaping Mortgage Technology
This white paper looks at the mobile technology must-haves helping lenders streamline consumer experiences, improve workflow efficiencies, enhance partner collaboration and ultimately execute successful digital mortgage strategies.
Presented by: SimpleNexus
But that is “still a ways off,” Federal Reserve Chair Jerome Powell said at a Congressional hearing last week. The U.S. central bank plans to continue its asset purchases until there is substantial progress on jobs.
That accommodative stance is bolstered by concerns about the Delta variant and the market outlook, an analysis from Goldman Sachs noted this week. The Federal Open Market Committee is scheduled to meet next week.
President Joe Biden also pushed back at concerns over rising inflation during a press conference this week. “No serious economist” is suggesting the economy is headed toward unchecked inflation, he said.
“If we were to ever experience unchecked inflation over the long term that would pose real challenges to our economy,” Biden said, adding that his administration would “remain vigilant about any response that is needed.”
Since March 2020, the Fed’s asset purchases have been split between $80 billion of U.S. Treasury bonds and $40 billion of mortgage backed securities each month, keeping the cost of long-term borrowing low, in turn depressing mortgage rates. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.01%.
Despite the low cost of borrowing, the housing market is showing signs of sluggishness.
Ten-year Treasury yields declined sharply last week, in part due to investor concerns about the spread of COVID variants and their impact on global economic growth, according to a report from the Mortgage Bankers Association.
Mortgage applications for new home purchases decreased 3% from May to June, sliding 23.8% year over year, according to the latest report from the MBA.
New single-family home sales decreased 5% to 704,000 units from 741,000, the trade group found. New home sales also declined slightly, from 68,000 to 66,000 in May. Overall, sales of new homes are down 7% from last year.
Homebuilders have encountered price increases for some building materials and labor shortages have dampened new home sales and increased home price appreciation, according to Joel Kan, MBA associate vice president of economic and industry forecasting. Persistent low inventory is keeping competition for available units high, he added.
In June, the average loan price rose to a record $392,370, according to the MBA.
“In addition to price increases, we are also seeing fewer purchase transactions in the lower price tiers as more of these potential buyers are being priced out of the market, further exerting upward pressure on loan balances,” Kan said.
Sara’s been reading personal finance blogs for a while now, and she’s ready to set up a budget. She’s come to us for help. She writes:
I would like to start listing my spending totals into a spreadsheet budget along with setting goals for ‘bigger things’ (trips, winter tires etc). Do you have a budget template that works for you, or could you please recommend a few tips on getting started?
A budget can be an excellent tool not only for planning your spending, but also for planning your saving. Over the past 2½ years, I’ve shared a variety of budgets and budgeting tools — here are some of my favorite.
3 Budget Frameworks
A budget doesn’t have to be complicated. In fact, readers have recommended three very simple budgets to me in the past. Most people will need more detail than these provide, but each provides a framework on which to build something more personal. (Notice that each of these allocates 20% to savings. If you can pick that habit up early, you’ll be way ahead of the game.)
In The Only Investment Guide You’ll Ever Need, Andrew Tobias offers the following simple yet effective budget:
Destroy all your credit cards.
Invest 20% of all that you earn. Never touch it.
Live on the remaining 80%, no matter what.
Although Tobias is being glib, this is actually an excellent system. If you can develop the discipline to follow just these three steps, you can become rich.
In All Your Worth: The Ultimate Lifetime Money Plan, the authors argue that in order to succeed financially, you must keep three broad areas of your finances “in balance”. They say to divide your net income (after-tax income) as follows:
Allocate 50% to Needs (which the authors call Must-Haves). Needs include housing, transportation, groceries, insurance, and clothes you really need.
Spend 30% on Wants. Wants include cable television, clothing beyond the basics, restaurant meals, concert tickets, comic books, knitting supplies, etc.
Set aside 20% for Savings, including debt repayment.
This budget is designed so that you can save a lot and have fun. To achieve this, the authors encourage you to reduce your Needs. In fact, reducing Needs is the cornerstone of their advice.
At MSN Money, Richard Jenkins offers his 60% solution. He suggests your budget should divide monthly gross (pre-tax) income like this:
60% to Committed Expenses such as taxes, clothing, basic living expenses, insurance, charity (including tithe), and regular bills (including things like cable).
10% to Retirement.
10% to Irregular Expenses such as vacations, major repair bills, new appliances, etc.
10% to Long-Term Savings/Debt — money set aside for car purchases, home renovations, or to pay down substantial debt loads.
10% for Fun Money to be used for dining out, hobbies, indulgences, etc.
Jenkins believes that the best way to relieve money pressure is to reduce Committed Expenses: cut the cable TV, spend less on clothing, reduce your housing expense, etc.
4 Budget Spreadsheets
Once you’ve picked a framework on which to build, there are a host of budget spreadsheets to choose from. My top recommendation is the PearBudget spreadsheet, a detailed, polished work of Excel art. If this doesn’t meet your needs, move on to another option.
One of those options is the free and simple budget planner that Jeff M. shared with Get Rich Slowly readers last February. It’s available in two formats:
Microsoft Excel (70kb) — right-click and choose “Save as…” to download. This file should also work with Open Office.
Google Docs — select “File -> Copy spreadsheet…” to save to your account.
Jeff’s spreadsheet is designed solely to keep you on a budget you’ve already set, not to help you create a budget. Budgets vary from person-to-person. Create one that works for you, and use this planner to track your progress. If you need help developing a budget, try this Google Docs budget estimator from GRS-reader Justin M.
Finally, GRS forum administrator Stephen Popick shared his homegrown budget workbook last year. This highly customizable spreadsheet has tabs for your budget and your spouse’s budget.
(If you’re looking for other financial tools, It’s Your Money offers an additional 33 personal-finance spreadsheets for a variety of uses, from budgeting to fuel tracking to CD laddering.)
3 Web-Based Budget Tools
Naturally, there are web-based tools for budgeting, too. Here are three excellent choices:
The afore-mentioned PearBudget comes in a web version that receives rave reviews.
NeoBudget is an online budget manager that uses the envelope method to help you track your spending habits and stick to a budget.
Finally, You Need a Budget offers a robust feature set, and is probably most appropriate for advanced budgeters.
I’ve never used any of these products. If you have tried one (or more), leave feedback to let us know your impressions.
A Few Words of Advice
Last March, Joshua explained why he believes budgeting is the most important thing you can do with your money, and offered hints on how to get started. More recently, Trent at The Simple Dollar shared his 10 tips for a successful budget:
Know why you are budgeting. Don’t do it just because you think you should — do it to help yourself spend less than you earn.
Have a specific, concrete long-term goal in mind. Remember: the road to wealth is paved with goals.
Know how much you actually make.
Have accurate data for both your monthly spending and your irregular spending. You can get this data by learning to track your spending.
Choose checking and savings accounts that include useful budgeting tools by default. ING Direct, for example, makes it easy to open multiple accounts.
Use a simple budgeting tool that you’re able to understand. “Start with pencil and paper if you have to,” Trent says. (Any of the tools I listed above would be a good choice.)
Be realistic. Don’t start by promising yourself to be a super saver. Take small steps, and work up from there.
Get support from at least one other person.
Set some short-term goals that will be easy to achieve if you stay on budget. These will give you a psychological boost so that you’re more likely to stick to the program.
Don’t be afraid to adjust your budget (even radically). Be flexible. Your goal is to find a system that works for you.
Trent’s advice is great. I’d add that, if possible, you should base your budget on yearly expenses. The Journal of Consumer Research found that people are more accurate when constructing an annual budget than a monthly budget.
Reader Hints and Tips
All of these tools are excellent resources to help Sara start budgeting. I think her best bet, however, is to pick the brains of Get Rich Slowly readers. You are real people with real lives who have implemented real budgets. You’re not some personal finance writer pushing a theoretical model to sell books.
If you keep a budget (or have in the past), what’s the best way to get started? What works? What doesn’t? What should Sara do to ensure ongoing budgeting success?
The summer months are here, so you know what that means, entertaining and lots of it. Indoor and outdoor summer soirees demand new home decor items perfect for entertaining an intimate group of loved ones or having a backyard bash. Although it may be daunting at first, shopping for summer decor and entertaining essentials can be fun, especially if you have impressive new collections to peruse.
From colorful serving treys to funky hues and prints, Black women designers are stepping out of any comfort zone to think outside the box and provide their audiences with elegant, fresh, and timeless decor items. Tabitha Brown is never out of creativity or colorful decor options. Although her new outdoor entertaining collection for Target launched earlier in May, it’s well sought after, as the line boasts colorful prints, rich hues, and creative solutions for summer entertaining. Next up, we have Ayesha Curry’s Sweet July collaboration with Pottery Barn. The entrepreneur and lifestyle maven has a more subtle approach to color palettes and design. Still, her home decor collection offers sensible solutions to the stress of entertaining loved ones at home. Curry offers everything from beautiful plates and glassware to artisan string lights.
Last but certainly not least, we have the eclectic maximalist herself, Justina Blakely. The designer is known for partnering with international artists to curate intricate textiles and woven pieces that catch your eye, like her gorgeous cake stand. Check out 13 fabulous buys to help you entertain your guests in style.
01
Grilling Tool Set with Fabric Sleeve – Tabitha Brown for Target
This Grilling Tool Set with Fabric Sleeve from Tabitha Brown for Target adds flair and convenience to your backyard barbecue. The tool set includes a fork, a grilling turner with a serrated edge, a pair of tongs, and a black brush. Each tool has a wood-finish handle, hanging metal hook, and stainless steel top. The sleeve with slot pockets for the four grilling tools completes the set in a vibrant style. Available at
02
Striped Palm Outdoor Throw Pillow – Tabitha Brown for Target
Amp up the look and feel of any outdoor retreat with the Palm Throw Pillow from Tabitha Brown for Target. This square throw pillow features palm leaves embroidery in vibrant hues to offer depth and dimension to your outdoor setting. The decorative throw pillow provides plenty of cushioned comfort while you sit and relax in your fave chair. Available at
03
Acrylic Serving Bowl Yellow – Tabitha Brown for Target
Add timeless style to your kitchenware collection with this Acrylic Serving Bowl from Tabitha Brown for Target. Made of acrylic and featuring an embossed floral pattern for added shine and appeal, this yellow serving bowl features a round shape that is perfect for easily displaying or serving up anything from chilled salads to hot dishes. Plus, it’s dishwasher-safe for easy cleaning. Available at
04
Outdoor Lounge Mat – Tabitha Brown for Target
Stay comfy as you enjoy a sunny afternoon on this Outdoor Lounge Mat from Tabitha Brown for Target. Featuring bright leaves print and stripes for charming flair, the lounge mat is made from water-repellant material that will help keep it looking great for seasons to come. Plus, the top handles make it easy to carry the folded lounge mat around, and the large-size attached pillow is great for reading and sipping a drink. Available at
05
14″ Serving Tray – Tabitha Brown for Target
This Serving Tray from Tabitha Brown for Target brings extra cheer to entertaining. Designed in an oval silhouette, this melamine serving tray features raised edges to help keep the items in place and make carrying items a breeze. It’s designed with two side cutout handles, and you can toss it in the dishwasher for easy cleanup after meals. Available at
06
Woven Utensil Caddy – Tabitha Brown for Target
Style up your kitchen while adding functionality to it with this Utensil Caddy from Tabitha Brown for Target. Designed in an oval silhouette, this decorative utensil caddy features one large section to stash small plates and three smaller sections for storing knives, forks, or spoons. Plus, it’s designed with two side tote handles for easy carrying. Made from paper rope and seagrass, it brings natural flair to your kitchen decor. Available at
07
Sweet July Stoneware Serve Platter
Vivid patterns and rich texture come together in this eye-catching serve platter. Available at
08
Sweet July String Lights
Create an intimate setting outdoors with these stylish string lights. Available at
09
Sweet July Handcrafted Marble Condiment Bowls
Featuring rich, caramel-colored veining of Calacatta marble, these handcrafted bowls elevate any gathering. Each bowl has a bronze-finished spoon for a warm accent to the stone. Available at
10
Sweet July Stainless Steel Party Bucket
With a bronze finish, this party bucket has a classic rimmed look and plenty of space for a party of drinks. Available at
11
Sweet July Herringbone Handcrafted Glass Highball Drinking Glasses – Set of 4
Add an extra touch of style to happy hour with these sophisticated glasses. Faceted with a herringbone pattern, this handblown highball glass offers modern elegance. Available at
12
Jungalow Tall Wavy Pitcher
This clay planter is the perfect color pop for your home and will impress your guests. Available at
13
Jungalow Nanda Neon Cake Stand
This statement piece is striking alone or as a display for your fave dessert. Available at
We independently evaluate all recommended products and services. If you click on the links we provide, we may receive compensation.
There are things that we crush on and then there are things that we CRUSH on. To meet the criteria of a hard core crush an image or idea! has to really stop us in our tracks. Similar to the way our real life crush, Matthew McConaug-hottie, would stop us in our tracks if we say…perhaps strolled right past him on the street.
First, there would be the “moment of denial” – is this really happening? no, this is too good to be true. Followed immediately by the “moment of holy shit” – this is real life. people can’t just make this type of thing up! Then there’s the “moment of this is ah-mazing!” and now we can die happy after witnessing his golden locks and tanned skin just feet away. That thought process did in fact happen when we laid eyes on these capital-letter-CRUSH-worthy images! Just in a slightly less starstruck, but still equally obsessive way. This month…
We’ve got a crush on salmon-pink eyeshadow and sherbet pink shearling…
On charcuterie plates turned into charcuterie bowls complete with mini potatoes…
On black and white gallery walls mounted on a slightly higher horizon line…
On healthy desserts served with gold spoons obvi! like this Raw Oat Blueberry Pie…
On pink sequined pencil skirts paired with chambray shirts…
On wire statement stools around the table…
And on the next stop on our Wanderlust List: this stunning canyon in the Sierra Nevadas!
Which one of our crushes makes your heart flutter as much as it does ours? Obviously, it has to be that pink eye makeup from J Moon, right?! Or is it that blueberry pie? Seriously, get in mah belly! Maybe it’s those stunning Seven Tea Cup waterfalls because you never knew they existed before today and now they’re like, one of the coolest natural wonders you’ve ever seen?? Does anyone else know how to get to Johnsondale, CA?!
Whichever crush your heart chooses as it’s fave, just know, McConaug-hottie is off the table! He’s taken.
By us, obbvvvvviously. Happy March! PS: For our previous Crush Worthy moments CLICK HERE. And for our Top 10 Spring Must-Haves CLICK HERE!!
image 1 via J Moon // 2 via Canelle et Vanille // 3 via Nomad // 4 via Food Bandits // 5 via Stockholm Streetstyle // 6 via House Doctor // 7 via