How Much Money Should I Save Before Moving Out?
Moving out of your parents’ home requires a financial investment and taking time to consider your options. While there is not one number to aim for when saving money to move out, you shouldn’t move out with less than three months’ worth of expenses, including rent, utilities, and groceries. However, there are other fees, such as moving costs and application fees, you should also consider. Here’s how to determine how much money you should save before moving out.
Moving out of your parents’ home requires a financial investment and taking time to consider your options. While there is not one number to aim for when saving money to move out, you shouldn’t move out with less than three months’ worth of expenses, including rent, utilities, and groceries. However, there are other fees, such as moving costs and application fees, you should also consider. Here’s how to determine how much money you should save before moving out.
Calculate Rent
Most landlords have a general rule of thumb for accepting rental applicants based on income; your income should be at least three times the cost of the rent. For example, if you find an apartment with a rent of $2,000, your monthly salary should be around $6,000 or more. Some landlords will accept a tenant if their salary is less than this, but it’s up to you to correctly budget yourself. Most financial experts agree you should never spend more than a third of your income on housing.
Make sure you never lie on your rental application or try to voluntarily commit a rental scam. Landlords will perform background checks on you or ask for pay stubs to confirm any information you give them.
Moving Expenses
You have two options when deciding how to get your stuff from your old home to your new home: rent a moving truck and do it all yourself or hire a moving company. No matter what you choose to do, you’ll have to use some money. Typically, renting a moving truck and moving everything yourself is cheaper, but you’ll have to pay to repair or replace it out of pocket if you break anything.
However, if you hire a moving company, anything that’s broken in the move is covered by their insurance, and the company will pay to repair or replace it. If you’re moving expensive or heavy items, a moving company may cost more, but it can provide you with peace of mind that your belongings will safely get to your new home.
If you want to quickly get a moving cost estimate, contact a moving company as soon as possible so you can also book your reservation. Make sure you let your moving company know your current and new addresses and all of the items they’ll need to move for you so they can come up with the most accurate estimate.
Additional Expenses
Moving also comes with additional expenses you should consider. Some of these costs are one-time fees and others you’ll have to pay monthly like for storage if you need additional space. Here are additional expenses you should know about before you apply for an apartment.
Furnishings And Home Expenses
If you don’t have your furniture and don’t rent a fully furnished apartment, then you’ll need to buy furniture. Unfortunately, furniture can be expensive.
Sofa
Even a single chair can cost thousands of dollars. The good news is not all furniture is expensive. You can easily save money on furnishings by visiting a thrift store. Additionally, you might be able to purchase the floor model of a sofa at the furniture store.
Bed
Don’t forget you’ll also need a bed. You can determine the average price for a mattress online and comparison shop until you find the right one for your needs. Remember, a mattress needs to be replaced every six to eight years, so there’s no reason to break the bank buying one right now. You can always save a few thousand dollars by bringing your mattress from your current home to your new home.
Desk and Tables
Desks and tables can be the cheapest furnishings you have in your home, or they can be the most expensive; it all depends on where you shop and what your style is. Luckily, you can always find a cheap table at just about any furniture store if you’re not worried about how it’ll look in your apartment.
Application Fees
Not all apartments require you to pay a fee to apply, but many do. Apartment application fees vary depending on the apartment complex, but you can easily find out how much the cost is by visiting their websites or making a quick phone call.
Insurance
Renters need rental insurance to protect them from liability. For example, if your home is broken into and your laptop is stolen, your insurance company might pay you to replace it. Not only that, but insurance can help you avoid paying out of pocket for someone else’s medical expenses if they’re injured in your rental.
Utilities
Some landlords pay for the gas their tenants use, while other landlords force you to pay for all of your utilities, including garbage pickup. Utility costs vary based on location, but a healthy utility budget of $200 can ensure you always have enough money to pay your bills.
Groceries
Once your home is fully furnished, you’ll need to feed yourself. Most people grocery shop at least once a week. Depending on how much you eat and what you eat, your grocery bill can range from $50 to $200 per week for a single person.
Other Bills
If you have student loans, car insurance, personal loans, or a cell phone, you’ll need to also pay those bills on top of all of your other costs. Any bills you pay while living in your current home will still need to be paid when you get to your new home, so it’s essential not to forget about them when calculating your expenses.
Pet Fees
If you decide to live in a pet-friendly apartment and get a pet, you’ll need to give your landlord a non-refundable pet deposit and pay a monthly pet fee, also known as pet rent. Pet deposits and rents vary depending on location, so do your research before you commit to an animal so you can determine whether or not you can afford it.
Save Money Before You Move
If you’re not in a rush to move, consider saving as much money as you can before you start looking for an apartment. Make sure to calculate your monthly income and subtract your expenses so you can see how much is left over for rent. If you find that rent in your area is too expensive based on your income versus expenses, then you might want to consider moving to a new city or a location with cheaper rent.
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