Moving – Bariatrx

Have you found yourself with extra cash? Lucky you! Laura’s 3-step system will help you spend, invest, or save it wisely.

Laura Adams, MBA

October 21, 2020

investing your emergency money unless you have more than a six-month reserve.

The goal for an emergency fund is safety, not growth.

If you don’t have enough saved, aim to bridge the gap over a reasonable period. For instance, you could save one half of your target over two years or one third over three years. You can put your goal on autopilot by creating an automatic monthly transfer from your checking into your savings account.

Megan mentioned using high-yield savings, which can be a good option because it pays a bit more interest for large balances. However, the higher rate typically comes with limitations, such as applying only to a threshold balance, so be sure to understand the account terms.

Insurance protects your finances

Another critical aspect of preparing for the unexpected is having enough of the right kinds of insurance. Here are some policies you may need:

RELATED: How to Create Foolproof Safety Nets

How to invest for your future

Once you get as prepared as possible for the unexpected by building an emergency fund and getting the right kinds of insurance, the next goal I mentioned is investing for retirement. That’s the “I” in PIP, right behind prepare for the unexpected.

Investments can go down in value—you should never invest money you can’t live without.

While many people use the terms saving and investing interchangeably, they’re not the same. Let’s clarify the difference between investing and saving so you can think strategically about them:

Saving is for the money you expect to spend within the next few years and don’t want to risk losing it. In other words, you save money that you want to keep 100% safe because you know you’ll need it or because you could need it. While it won’t earn much interest, you’ll be able to tap it in an instant.

Investing is for the money you expect to spend in the future, such as in five or more years. Purchasing an investment means you’re exposing money to some amount of risk to make it grow. Investments can go down in value; therefore, you should never invest money you can’t live without.

In general, I recommend that you invest through a qualified retirement account, such as a workplace plan or an IRA, which come with tax benefits to boost your growth. My recommendation is to contribute no less than 10% to 15% of your pre-tax income for retirement.

Magen mentioned Roth IRAs, and it may be a good option for her to rebuild her retirement savings. For 2020, you can contribute up to $6,000, or $7,000 if you’re over age 50, to a traditional or a Roth IRA. You typically must have income to qualify for an IRA. However, if you’re married and file taxes jointly, a non-working spouse can max out an IRA based on household income.

For workplace retirement plans, such as a 401(k), you can contribute up to $19,500, or $26,000 if you’re over 50 for 2020. Some employers match a certain percent of contributions, which turbocharges your account. That’s why it’s wise to invest enough to max out any free retirement matching at work. If your employer kicks in matching funds, you can exceed the annual contribution limits that I mentioned.

RELATED: A 5-Point Checklist for How to Invest Money Wisely

How to pay off high-interest debt

Once you’re working on the first two parts of my PIP plan by preparing for the unexpected and investing for the future, you’re in a perfect position also to pay off high-interest debt, the final “P.”

Always tackle your high-interest debts before any other debts because they cost you the most. They usually include credit cards, car loans, personal loans, and payday loans with double-digit interest rates. Remember that when you pay off a credit card that charges 18%, that’s just like earning 18% on an investment after taxes—pretty impressive!

Remember that when you pay off a credit card that charges 18%, that’s just like earning 18% on an investment after taxes—pretty impressive!

Typical low-interest loans include student loans, mortgages, and home equity lines of credit. These types of debt also come with tax breaks for some of the interest you pay, making them cost even less. So, don’t even think about paying them down before implementing your PIP plan.

Getting back to Bianca’s situation, she didn’t mention having emergency savings or regularly investing for retirement. I recommend using her upcoming cash windfall to set these up before paying off a low-rate student loan.

Let’s say Bianca sets aside enough for her emergency fund, purchases any missing insurance, and still has cash left over. She could use some or all of it to pay down her auto loan. Since the auto loan probably has a higher interest rate than her student loan and doesn’t come with any tax advantages, it’s wise to pay it down first.

Once you’ve put your PIP plan into motion, you can work on other goals, such as saving for a house, vacation, college, or any other dream you have.

Questions to ask when you have extra money

Here are five questions to ask yourself when you have a cash windfall or accumulate savings and aren’t sure what to do with it.

1. Do I have emergency savings?

Having some emergency money is critical for a healthy financial life because no one can predict the future. You might have a considerable unexpected expense or lose income.

Without emergency money to fall back on, you’re living on the edge, financially speaking. So never turn down the opportunity to build a cash reserve before spending money on anything else.

2. Do I contribute to a retirement account at work?

Getting a windfall could be the ticket to getting started with a retirement plan or increasing contributions. It’s wise to invest at least 10% to 15% of your gross income for retirement.

Investing in a workplace retirement plan is an excellent way to set aside small amounts of money regularly. You’ll build wealth for the future, cut your taxes, and maybe even get some employer matching.

3. Do I have an IRA?

Don’t have a job with a retirement plan? Not a problem. If you (or a spouse when you file taxes jointly) have some amount of earned income, you can contribute to a traditional or a Roth IRA. Even if you contribute to a retirement plan at work, you can still max out an IRA in the same year—which is a great way to use a cash windfall.

4. Do I have high-interest debt?

If you have expensive debt, such as credit cards or payday loans, paying them down is the next best way to spend extra money. Take the opportunity to use a windfall to get rid of high-interest debt and stay out of debt in the future.

5. Do I have other financial goals?

After you’ve built up your emergency fund, have money flowing into tax-advantaged retirement accounts, and are whittling down high-interest debt, start thinking about other financial goals. Do you want to buy a house? Go to graduate school? Send your kids to college?

How to manage a cash windfall

Review your financial situation at least once a year to make sure you’re still on track.

When it comes to managing extra money, always consider the big picture of your financial life and choose strategies that follow my PIP plan in order: prepare for the unexpected, invest for the future, and pay off high-interest debt.

Review your situation at least once a year to make sure you’re still on track. As your life changes, you may need more or less emergency money or insurance coverage.

When your income increases, take the opportunity to bump up your retirement contribution—even increasing it one percent per year can make a huge difference.

And here’s another important quick and dirty tip: when you make more money, don’t let your cost of living increase as well. If you earn more but maintain or even decrease your expenses, you’ll be able to reach your financial goals faster.

$6,000 for the 2021 tax season.

Interested in learning more about the specifics of the Roth IRA? Here’s everything you need to know.

How Much Can You Contribute to a Roth IRA?

For the 2021 tax season, standard Roth IRA contribution limits remain the same from last year, with a $6,000 limit for individuals. Plan participants ages 50 and older have a contribution limit of $7,000, which is commonly referred to as the “catch-up contribution.”

You can also contribute to your IRA up until tax day of the following year.

Contribution Year	49 and Under	50 and Over (Catch Up)
2021	$6,000	$7,000
2020	$6,000	$7,000
2019	$6,000	$7,000
2018	$5,500	$6,500
2017	$5,500	$6,500
2016	$5,500	$6,500
2015	$5,500	$6,500
2014	$5,500	$6,500
2013	$5,500	$6,500
2012	$5,000	$6,000
2011	$5,000	$6,000
2010	$5,000	$6,000
2009	$5,000	$6,000

What You Need to Know About Roth IRAs

Here’s the thing about opening a Roth IRA: not everyone can use this type of account. We’ve included a few important Roth IRA rules you need to know about below.

Fund Distributions

Roth IRA accounts come with a few unique benefits outside of future tax savings. For example, you don’t have to take Required Minimum Distributions (RMDs) out of a Roth IRA at any age, and you can leave your money in your account for as long as you live.

You can also continue making contributions to a Roth IRA after you reach age 70 ½ provided you earn a taxable income that’s below Roth IRA income limits.

Income Limits

Not everyone can contribute into a Roth IRA account due to income caps. There are income guidelines that must be followed — it’s even possible to have an income so high you can’t use a Roth IRA at all.

If your taxable earnings fall within certain income brackets, your Roth IRA contributions might be “phased out”. This means you can’t contribute the full amount toward your Roth account.

Here’s how Roth IRA income limits and phase-outs work, depending on your tax filing status.

Married couples filing jointly:

Couples with a modified adjusted gross income (MAGI) below $196,000 can contribute up to the full amount.
Couples with a MAGI between $196,000 and $205,999 can contribute a reduced amount.
Couples with a MAGI of $206,000 or more can’t contribute to a Roth IRA.

Married couples filing separately:

Couples with a MAGI below $10,000 can contribute a reduced amount.
Couples with a MAGI of $10,000 or more can’t contribute to a Roth IRA.

Single tax filers:

Single tax filers with a MAGI below $124,000 can contribute up to the full amount.
Single tax filers with a MAGI between $124,000 and $138,999 can contribute a reduced amount.
Single tax filers with a MAGI of $139,000 or more can’t contribute to a Roth IRA.

Retirement Account Conversions Allowed

If you have another type of retirement account, like a traditional IRA or even a workplace 401(k), it might be tempting to convert this account into a Roth IRA. This is known as a Roth IRA conversion which requires you to pay income taxes on your distributions now so you can avoid income taxes later on.

Although that might sound aggressive and unnecessary, there are many scenarios where a Roth IRA conversion can make sense. For example, let’s say you’re not earning a lot of money in a specific year and you want to convert to a Roth IRA while paying an extremely low tax rate. You could fork over the taxes now and avoid paying income taxes on distributions later in life when you’re taxed at a higher rate.

As mentioned earlier, Roth IRA accounts don’t require you to take a minimum distribution while you’re alive. Moving your money into a Roth IRA can make sense if you don’t want to be forced into required minimum distributions (RMDs) like you would with a traditional IRA or a 401(k) at age 72.

With a Roth IRA conversion, you’d create an opportunity where your money could grow and compound, untouched, for a much longer stretch of time.

IRA Recharacterization

A recharacterization takes place when you move money from a traditional IRA to a Roth IRA, or from a Roth IRA to a traditional IRA. More specifically, recharacterization changes how specific contributions are designated depending on the type of IRA.

For example, maybe you believed your income would be too high to contribute to a Roth IRA in a specific year but found your income was actually low enough to contribute the full amount. If you already contributed to a traditional IRA, a recharacterization could help you move your funds into a Roth IRA, after all.

Of course, the opposite is also true. You might’ve thought your income qualified you to contribute to a Roth IRA but at the end of the year, you found out you were wrong after already making Roth contributions. In that case, a recharacterization to a traditional IRA could make sense.

These moves can be complicated, and there might be significant tax consequences along the way. It’s best to consult with a financial advisor or tax specialist before changing the designation of your IRA contributions and face potential tax consequences.

Early Withdrawal Penalties

You can withdraw your Roth IRA contributions at any time without penalty. Also, you can withdraw contributions and earnings 59 ½ and older, if you’ve had the Roth IRA account for at least five years. This is considered a qualified disbursement that won’t incur early withdrawal penalties.

But there are downsides if you need to withdraw your earnings ahead of retirement age. If you choose to withdraw your Roth IRA earnings before age 59 ½, you’ll face a 10% penalty. Some exceptions apply, though.

For example, you can withdraw earnings from your Roth IRA account without paying a penalty if you’ve had the account for at least five years, and you qualify for one of these exemptions:

You used the money for a first-time home purchase,
You’re totally and permanently disabled, or
Your heirs received the money after your death.

Where to Get Help Opening an Account

If you feel like a Roth IRA is the best retirement vehicle for goals, you can open a Roth IRA account with almost any brokerage account. But they don’t all offer the same selection of investments to choose from. Some brokerage firms also offer more help creating your portfolio, and some charge higher (or lower) fees.

That’s why we suggest thinking over the type of investor you are before you open a Roth IRA. Do you want help creating your portfolio? Or do you want to select individual stocks, bonds, mutual funds, and ETFs and create your own?

Always check for investing fees as you compare firms, and the types of investments each account offers. We did some basic research for you to come up with a list of the best brokerage firms to open a Roth IRA.

$0 per trade
$0 mutual fund
$0 set up
0.25% – 0.40% account balance annually

Get Started

Summary

Opening a Roth IRA is a great idea if you want to avoid taxes later in life, but you’ll want to start sooner rather than later if you hope to maximize this account’s potential. Remember that all of the money you contribute to a Roth IRA can grow tax-free over time. Getting started now lets you leverage the power of compound interest to the hilt.Before opening a Roth IRA account, compare all of the top online brokerage firms to see which ones offer the investment options you prefer at fees you can live with. Also consider which firms offer the type of help and support you need, including the option to have your portfolio chosen for you based on your income, your investment timeline, and your appetite for risk.

How to make smart financial decisions in a low interest rate environment.*

The Federal Reserve, a.k.a. the Fed, was in the news for more than a decade for raising the federal funds rate. But the headlines have changed. In July 2019 the Fed finally cut its benchmark interest rate. The Fed raises or lowers the federal funds rate to influence the direction of the U.S. economy toward strong employment and stable inflation.

Alright, this may all seem pretty high level. It’s just a bunch of news for policymakers, economists and investors playing the market. Right? Not so fast. While it may sound like a fancy finance term, the federal funds rate is the interest rate banks charge each other to lend funds overnight. When that rate goes down (or up), the effects trickle down to you and the financial products you use every day—think credit cards, loans and savings accounts.

What happens when the Fed lowers rates? You could see the effects trickle down to the financial products you use every day.

Even if you don’t typically follow financial headlines, understanding what happens when the Fed lowers rates can help you make smart financial decisions when it comes to borrowing, saving and spending. Read on to answer the question: What does a Fed rate cut mean for my finances?

What goes up and what comes down when the Fed cuts rates

What happens when the Fed lowers rates? One of the Fed’s goals with a rate cut is to make borrowing less costly. Translation: You could see lower interest rates on credit.

Economist and podcast host John Norris says that a Fed rate cut could actually be helpful to the average consumer. “If history serves as a guide, the prime rate will fall by the same amount as the Fed’s actions,” Norris says. “This means credit cards and home equity lines of credit (HELOCs) will be a little cheaper for consumers moving forward.” The prime rate, which is based on the federal funds rate, is the interest rate lenders charge their most creditworthy customers.

You might feel how a lower Fed rate impacts you if the prime rate also falls, making it cheaper to borrow money for big purchases.

Broken down simply, here’s how a lower Fed rate impacts you and the various types of credit you may already have or be considering:

Credit cards: “Credit cards are almost exclusively variable APR,” says Greg Mahnken, analyst at Credit Card Insider. “This means that as the prime rate goes up and down, the interest rate of the card will fluctuate as well. Your card issuer must tell you the margin rate—that’s the margin added to the prime rate to get your credit card’s APR,” Mahnken explains. If you’re wondering how a lower Fed rate impacts you and your cards, you could be charged less to carry a balance and may see smaller minimum payments.
Mortgages: What happens when the Fed lowers rates? For mortgages, it depends on the type of loan. The rate could drop on adjustable-rate mortgages, for example, meaning a reduced monthly payment. How a lower Fed rate impacts you could be different for a fixed-rate mortgage. This type of mortgage may not be as directly impacted by a Fed rate cut and is influenced by other factors.
Home equity lines of credit: If you have a HELOC or are in the market for one for home repairs, you could see a rate decrease following a Fed rate cut, lowering monthly payments.
Other loans: If you’re wondering how a lower Fed rate impacts you, know that it could influence lower rates on auto loans for car owners, but factors including industry sales and financing offers also come into play. If you have a private student loan and a regular payment schedule, you could see a lower monthly payment.

Now, what does a Fed rate cut mean for my finances when it comes to saving? Savers could see interest rates decline on deposit accounts like savings accounts, money market accounts and certificates of deposit (CDs). A lower interest rate here means you’ll earn less in interest on your savings balances.

“Banks make money by making a spread between what they pay for deposits and what they charge on loans,” Norris says. “When what they can charge on a loan goes down, it makes sense what they pay on deposits will eventually do so as well.”

How to manage a rate cut as a borrower, saver and spender

What does a Fed rate cut mean for my finances is only half of the puzzle. The other half is determining how to manage your finances in a lower rate environment so you can achieve your financial goals. Follow these tips when you consider how a lower Fed rate impacts you for borrowing, saving and spending:

If you’re borrowing:

Look for lower rates on new credit cards: “Credit card users should always be on the lookout for lower variable rate formulas, and a rate cut or two is a perfect time to do a little homework when looking for new cards,” Norris says.
Ask for lower rates on existing credit cards: When you’re learning what happens when the Fed lowers rates, consider that negotiating better rates on borrowed money could be easier in a lower interest rate environment. For example, you can check with your credit card issuers to see if you can get a lower interest rate on the credit cards you have already.
Refinance high-interest debt: “If your issuer/lender won’t lower your interest rate despite a cut to the Fed/prime rate, look into refinancing or consolidating your debt with a lower-interest loan,” Mahnken says.

If you’re saving:

Find a competitive savings account rate: Even though lower rates on savings is often what happens when the Fed lowers rates, banks could still offer competitive savings rates. For instance, online banks can often pass savings on in the form of higher interest rates on their deposit accounts because they save money by not maintaining brick-and-mortar locations. Discover, for instance, offers a high-yield savings account with an interest rate over 5x the National Savings Average.¹ So while rates may go down on average, you can possibly earn a higher interest rate on your savings than you had in the past with a high-yield account.

You earned it.
Now earn more with it.

Online savings with no minimum balance.

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Discover Bank, Member FDIC

Lock in a higher fixed rate: If you anticipate more Fed rate cuts in the future, then explore savings vehicles with a rate that you can lock in. With a fixed-rate certificate of deposit, for example, the CD rate is fixed for the entire term. If you open a 5-year CD, your savings will continue to earn the same interest rate despite rate cuts. Note that CDs often come with an early withdrawal penalty if you withdraw your funds before the end of the account’s term, so they’re best used for savings you won’t need to touch for a set period of time.

If you’re spending:

Decide to buy, but do it wisely: Since one answer to “What does a Fed rate cut mean for my finances?” is that borrowing costs less, it could make sense to go ahead with that large purchase you’ve been planning for ages. “When it comes to spending, lower interest rates can encourage bigger purchases, such as home improvements, cars and homes,” Mahnken says. “But before making a big-ticket purchase, make sure you have a budget so you can see how the purchase will affect your monthly cash flow.”
Pursue a passion that requires capital: If you can get access to borrowed money at lower rates, some of your personal goals that require credit could be more achievable. Maybe you’ve been preparing to start a business endeavor or pursue higher education to advance your career. Now could be the time to set things in motion.

Fed rate cut or not, there’s always room for financial improvement

Even if financial news isn’t your thing, paying attention to trends like a Fed rate cut (or hike) can help you manage your money most effectively. Despite the interest rate climate, though, it’s still important to remain disciplined in your financial strategy. This includes setting financial goals, creating a plan to reach them and educating yourself on tools and methods that can help you in the process. Whether interest rates are low or high, you’ll always win with this approach.

* This should not be considered tax or investment advice. Please consult a financial or tax advisor if you have questions.

¹ The Annual Percentage Yield (APY) for the Online Savings Account as of 02/01/2021 is more than five times the national average APY for interest-bearing savings accounts with balances of $500 as reported by Informa Research Services, Inc. as of 02/01/2021. Interest rates and APYs are subject to change at any time. Although the information provided by Informa Research Services has been obtained from the various institutions, accuracy cannot be guaranteed.

Source: discover.com

Maybe you didn’t think twice when you put a big security deposit on that fancy apartment two summers ago. But now that you’re getting ready to move again, you might be wondering how much of that deposit you’ll actually get back.

Believe it or not, your deposit isn’t at the mercy of your landlord. Tenants have rights, and landlords have limitations on what they can deduct from your deposit.

In Florida, for example, “if the landlord fails to return the security deposit in a timely manner, or deducts for normal wear and tear, then the tenant can sue the landlord to get their deposit back and the landlord will have to pay the tenant’s attorney fee,” says Larry Tolchinsky, a real estate lawyer and partner at Sackrin & Tolchinsky in Hallandale Beach, FL.

But to avoid getting to that point, it’s important for tenants to understand the basics on deposits. In most states, the timely return of your deposit means there’s a deadline—such as 30 days—so be sure to leave a forwarding address.

When landlords deduct from your deposit, they will typically include an itemized statement explaining how the deposit was applied. In California, for example, if a landlord deducts any more than $126, they must provide receipts for their deductions.

Landlords can’t deduct from your deposit for any old reason; there has to be a legit circumstance. The rules may vary from city to city (or state to state), so read up on what your landlord can and can’t do in your area. But, in general, here are some things landlords can deduct from your deposit.

Nonpayment of rent

Unemployment as a result of the COVID-19 pandemic has hit many tenants hard, rendering them unable to pay rent. Some landlords and management companies have offered rent relief, but others have claimed that unpaid rent is unpaid rent. In this situation, landlords can collect unpaid rent—and late fees—from your deposit as necessary.

“Rent that is not paid is considered damages when a tenant vacates,” says Eric Drenckhahn, a real estate investor and property manager, who runs the blog NoNonsenseLandlord.com. “A tenant cannot use the damage deposit to pay their rent without the landlord’s approval, but a landlord can deduct it for nonpayment after a tenant has left.”

Unpaid utilities

Forgetting to pay your utility bill happens. But if you pay for things like trash and water through your property management company, be aware that your landlord could tap your security deposit to cover any bills you missed.

Tolchinsky says there is no black and white law on this, but it is possible. It all depends on the terms of your lease and local rules governing the jurisdiction that you reside in.

Abnormal cleaning costs

If you left the place trashed and filthy, expect your landlord to dig into your deposit. Landlords can deduct from your deposit for excessive dirtiness, beyond normal cleaning costs.

Drenckhahn says the place should be “broom clean,” or as clean as when you moved in.

“Dirt and grease left behind is not wear and tear,” says Drenckhahn. “Examples of excessive dirtiness includes removing stains from the carpet, replacing the carpet due to a cat using a closet for a litter box, or replacing door trim due to cat scratches.”

Doing a little cleaning before leaving isn’t a bad idea, but it doesn’t guarantee it’ll save your security deposit.

Tolchinksy says if a tenant hires a professional cleaner, rents a steam cleaner, or buys paint to paint the walls, he or she “should maintain all invoices and receipts” to provide proof to the landlord.

Damage to the property

Security deposit laws allow a landlord to deduct from a security deposit for any damage. This is different from normal wear and tear, such as faded paint or worn carpet that is naturally occurring and not due to the tenant. Examples of damage to the property include a broken bathroom vanity, cracked kitchen countertop, or broken doors.

Tolchinsky says it’s a good idea for a tenant to request a move-in and a move-out checklist and document by pictures and video the condition of the apartment.

Items left behind

Packing and moving everything you own is a huge undertaking. But regardless of how exhausted you are, don’t leave any items behind; it could be a costly mistake.

“Mattresses and box springs left behind are expensive to get rid of, and you will be charged accordingly,” says Drenckhahn. “It is not unusual to be charged $50 or more for each piece.”

If you do need to get rid of a bunch of large items, hire a junk hauling company, try to sell them online, or look into donating them to charity.

Breaking the lease

In some circumstances, breaking your lease is the only option. But breaking your lease early makes it less likely that you will reunite with your deposit.

A landlord can keep all, or part, of your deposit to cover costs if you break your lease early, per landlord-tenant state laws and what’s written in your lease contract. If you can, try to move when your lease is up.

“In my places, you are required to be out by 10 a.m. There is no late checkout, as I have tenants generally moving in the next day,” says Drenckhahn. “When you have the place clean, and even move out a few days early, it’s very easy to refund 100% of the damage deposit.”

Source: realtor.com

Moving from a house to an apartment has its perks and its challenges – and planning your move strategically can help with the latter! Whether you’re looking for a fresh start in a new town or moving cross-country for school, there are several things to consider as you downsize to an apartment.

1. Measure your new space.

That plush, overstuffed couch may look incredible in your house’s open-concept living room. However, it might be a bit overwhelming in a smaller apartment. The same goes for your six-person dining table and king size bed.

Don’t spend time or money (or elbow grease!) lugging your furniture to a new apartment only to discover it won’t fit in the door! If you’ve already picked out your specific apartment, you’ll be able to get exact measurements of each room you’ll be furnishing. Use those measurements or your apartment’s floor plan to figure out what can stay and what needs to go.

Haven’t selected your apartment yet and not sure how to downsize? You can still start determining which furnishings need to go. For example, if you know you’ll be searching for a one-bedroom apartment, you can probably get rid of your guest room and home office furniture.

2. Ditch the (unnecessary) past.

Aside from losing the excess or oversized furniture, you’ll likely have plenty of belongings to sort through as well. The beautiful thing about apartment living is that you won’t need everything you needed in a house. Appliances are provided, so don’t worry about transporting your stove. Lawn care is officially a thing of the past, so you can get rid of your gardening and landscaping tools. One downside of moving from a house to an apartment is that you’ll likely lose some storage space. However, this makes your move a perfect opportunity to declutter, donate, and sell stuff you won’t need.

3. Look into storage units.

If you’ve got things that won’t quite fit in your new apartment, but you can’t fathom getting rid of them, check out your local storage options. You can use a storage unit for keeping the things you only use sporadically, like a camping tent, seasonal décor, family heirlooms, and so on. This is also the perfect option for someone moving into a temporary apartment, who needs to stash their extra things for the time being.

4. Consider “double duty” furniture.

When downsizing to an apartment, it’s wise to be savvy with your furnishings. For example, buying a pullout couch can instantly turn your living room into a makeshift guest room. Opting for a storage ottoman instead of a coffee table can offer extra functionality. In an apartment, multi-tasking furniture like futons, modular couches, and expandable dining tables can help you make the most out of every square foot.

If you’re just testing the apartment life, you don’t need to spend a fortune on new, “multi-tasking” furniture. Avoid the upfront costs and hassle of furnishing a new space by renting furniture with CORT. When you shop at CORT, you don’t have to empty your life-savings to furnish an apartment for a one-year lease!

5. Embrace everything apartment living has to offer!

One beautiful thing about moving from a house to an apartment is the ability to take advantage of the amenities of the property. For example, an on-site gym means you can cancel your pricey gym memberships and sell your home gym equipment. Additionally, some apartment complexes offer free internet and cable, giving you one less bill to pay. There are plenty of things to look forward to when moving to an apartment!

Considering a grander life in a smaller space? Make sure you’re happy with your new home’s amenities, neighborhood, and square footage. Find your next place on Apartment Search and downsize to the perfect apartment.

Source: blog.apartmentsearch.com