So you’re finally ready to move out of your parents’ house and live on your own. But now you may be wondering, how much money should I save before moving out?
That’s the question that we’re here to help answer. There’s a lot that goes into figuring out how much you need to save. For example, depending on where you want to live, your monthly expenses can vary significantly.
So we’ve gathered up the complete guide to sorting it all out and finding out how much money you need to save before moving out. Ready to learn more? Let’s dive in!
The Costs and Benefits of Living On Your Own
Living on your own without the help of your parents has both costs and benefits. On the one hand, the costs of living on your own can be significant, including higher expenses for housing, transportation, food, and utilities.
Additionally, you will no longer have someone to provide financial support or help with household tasks like cooking and cleaning. However, there are also many benefits to living independently. For one thing, you will have more freedom and flexibility in terms of where you live and how you spend your time.
You will also gain a greater sense of responsibility as you take responsibility for all aspects of your life. Ultimately, whether or not living independently is right for you depends on a number of personal factors, such as your priorities and lifestyle preferences. But ultimately, there are likely to be both pros and cons to making this choice.
What Are the Typical Costs of Moving?
No one ever said that moving was cheap. In fact, the cost of moving can be quite costly, depending on how much you have to move and where you are moving to.
So what are the typical costs of moving? Keep reading to find out!
Money for Moving Expenses
The cost of moving depends on a number of factors, including the distance of the move, the size of your home, and the services you require.
For a long-distance move, you can expect to pay thousands of dollars for transportation, storage, and other services.
If you’re moving to a smaller home or apartment, you may be able to do it yourself for just the cost of renting a truck.
But if you need help with packing, loading, and unloading, you can expect to pay more.
In addition, if you’re moving during peak times (like the summer), rates will be higher. So when budgeting for your move, be sure to get quotes from several different companies to get an accurate estimate of costs.
One Month’s Rent
The cost of rent varies greatly depending on a number of factors, including location, amenities, and the type of housing that is available.
On average, however, it is estimated that one month’s worth of rent will typically cost somewhere in the range of a few hundred dollars to a few thousand dollars.
This figure will obviously depend on the specific city or region, as well as the type and size of housing that you are seeking.
For example, in more urban areas like New York or San Francisco, it is common to see rents in excess of $3,000 per month for just a modest studio apartment.
Conversely, in more rural regions like the Midwest or South, one month’s rent can often be several hundred dollars less. Ultimately, the cost of rent will largely come down to your own unique needs and budget constraints.
So if you’re looking for quality housing at an affordable price, it’s important to consider all your options before making any big decisions.
Security Deposit
A security deposit is an amount of money that a landlord requires from a tenant at the beginning of a tenancy.
The purpose of the deposit is to protect the landlord in case the tenant damages the property or fails to pay rent. In most jurisdictions, the amount of the security deposit is limited by law.
For example, in California, the maximum amount that a landlord can charge for a security deposit is two months’ worth of rent.
In addition, the landlord must return the deposit to the tenant within 21 days after the tenancy has ended.
Renter’s Insurance
The price of a renter’s insurance policy will vary depending on factors such as the value of your belongings, the amount of coverage you need, and the deductibles you’re comfortable with.
However, in general, renters insurance is relatively affordable, with most policies costing less than $20 per month. You can check out specific prices with an insurance marketplace like Insurify, or see what popular insurance platforms, such as Policygenius, offer.
No matter the price, you’ll enjoy peace of mind knowing that your possessions are protected in the event of damage or theft.
Utilities
The average cost of utilities can vary depending on where you live and what type of property you have. However, in most cases, utilities typically include electricity, gas, water, and trash service.
The exact cost of each utility will depend on your individual usage and the rates set by your utility provider. However, you can typically expect to pay anywhere from $50 to $200 per month for utilities. In some cases, you may also be responsible for paying a monthly service fee or deposit.
While the cost of utilities can be a bit daunting, it is important to remember that these services are essential for keeping your home up and running. Without them, you would be left without power, heat, or water.
That being said, it is important to do your research and select a utility provider that offers competitive rates and good customer service. By taking the time to shop around, you can ensure that you are getting the best possible deal on your utilities.
Groceries
Another thing you’ll have to factor in when you leave your parents’ house and get your own apartment? How you’re going to feed yourself.
The cost of groceries can vary greatly depending on a number of factors, including the size of your household, your location, and your eating habits.
According to the USDA, the average monthly grocery bill for one person is more than $200.
Ultimately, the amount you spend on groceries each month is up to you. However, understanding the average cost can help you plan your budget and make informed decisions about your food spending.
Furniture
Furnishing your first apartment can be a daunting task – and an expensive one. Though you may be tempted to splurge on that designer couch or statement piece dining table, there are ways to save money while furnishing your first home.
For example, consider buying second-hand furniture – many times, you can find gently used furniture for a fraction of the price of new pieces.
Additionally, think about multi-purpose furniture – a coffee table that doubles as storage, for instance.
Or look for furniture that can serve multiple purposes in different rooms – a bench at the end of your bed can also work as extra seating in your living room. With a little creativity, furnishing your first apartment doesn’t have to break the bank.
Transportation
The cost of transportation can vary widely depending on a number of factors, including where you live and the type of vehicle you drive.
For example, if you live in a rural area with limited public transit options, your transportation costs are likely to be much higher than someone who lives in a city that has an extensive public transportation network.
Additionally, the cost of owning and operating your own vehicle can vary greatly depending on its age, size, and fuel efficiency.
On average, most people living on their own can expect to spend at least several hundred dollars per month on transportation costs, though this number will be much higher for those in more expensive parts of the country.
HOA/Community Fees
Homeowners’ association (HOA) or community fees are monthly or quarterly payments that cover the costs of maintaining common areas and amenities. You may or may not have these, depending on where you end up living.
This can include things like landscaping, snow removal, garbage collection, and security. Fees vary depending on the size and location of the community, but they typically range from $100 to $400 per month.
Some HOAs also charge a one-time initial fee, which can be several thousand dollars.
What Does a Month’s Rent Cost for a Home or Apartment?
The cost of rent can vary depending on a number of factors, including the location, the size of the unit, and the amenities offered.
In general, however, a month’s rent for a home or apartment will fall somewhere in the range of $800 to $1,200. Of course, there are always exceptions to this rule, with some units costing significantly more or less than this average.
For example, luxury apartments in New York City can easily run upwards of $3,000 per month, while a small studio in a less desirable neighborhood may only cost $500. Ultimately, the best way to determine the cost of rent for a particular unit is to contact the landlord or property manager and ask for a quote.
Should I Rent a Storage Unit?
Most people have experienced the need for extra storage space at some point in their lives. Whether you’re dealing with a cluttered garage or an overflowing closet, renting a storage unit can provide the perfect solution.
Storage units are typically located near major highways, making them easy to access. You’ll also have 24/7 access to your belongings, so you can retrieve them anytime.
Storage units are typically well-lit and well-secured, with security cameras and on-site staff. This means your belongings will be safe and sound while they’re in storage.
If you’re storing items that are sensitive to temperature or humidity changes, you can rent a storage unit that offers climate control, too.
How To Save Money Before Moving Out
Moving out of your parents’ house is a big step. It’s a chance to gain independence and start fresh, but it’s also a costly endeavor. If you’re not careful, the costs of rent, utilities, and other expenses can quickly add up. Below are a few tips to help you save money before making the move.
Start Early But Don’t Rush
Start early. The sooner you start planning for your move, the better. This will give you time to save up and compare prices.
Don’t rush into things. Take your time when looking for an apartment or house. Make sure you find something that’s in your price range and that you’re comfortable with.
Build an Emergency Fund Savings Account
The first step to saving money before moving out is to build up an emergency fund savings account. This account should consist of enough money to cover your basic living expenses for at least three months, including rent, utilities, groceries, and transportation costs. It’s important to set this account up well in advance of moving out so that you have time to accumulate the necessary funds.
Work on Your Credit History
One big thing that can make a difference when you’re ready to move out is your credit score.
A high credit score means you’re more likely to be approved for an apartment, with a lower deposit and rent amount.
A low credit score may result in being denied for an apartment or paying a higher amount for rent.
There are a few things you can do to improve your credit score, like paying your bills on time, maintaining a good credit history, and using a credit monitoring service. You can also try to get a co-signer with good credit to increase your chances of being approved for an apartment.
Get a Roomie
Get creative with your living situation. If possible, consider roommates or living in a smaller space to save on rent and utilities.
Work on Your Budget
One effective strategy for building up your emergency fund savings is establishing a budget and faithfully sticking to it. Consider tracking your spending over the course of a month or two and looking for areas where you can cut back on unnecessary expenses. If you need help keeping track of your budget, consider using an app like YNAB or Mvelopes to help you sort out your finances.
Another useful strategy is to actively seek opportunities for earning extra income – whether through freelance work, part-time employment, or other means – so that you can boost your savings as much as possible.
Be mindful of your spending leading up to the move. Avoid unnecessary purchases and put any extra money towards your moving expenses.
Sell What You Don’t Need
One of the best ways to save money before moving out is to sell or donate the things that you no longer use or need. You can make some quick cash by selling gently used clothing, furniture, appliances, and kitchenware online, with sites like Etsy or Facebook Marketplace, or at a local consignment shop.
Or you can get rid of these items for free by donating them to charity or by giving them away to friends and family members.
By getting rid of the extras and selling what you don’t need, you can reduce clutter in your home and have more money available for investing in the essentials like furniture, kitchen upgrades, and other practical necessities.
How Much Money Should I Save Before Moving Out?
Deciding how much money to save before moving out on your own is a personal decision that depends on a variety of factors.
If you’re currently living at home, you may have less overhead but may also need to save more for furniture and other essentials. In general, it’s a good idea to have at least three months’ rent in savings as well as enough money to cover any moving costs and unexpected repairs or renovations.
Once you’ve moved into your new place, you can start building up your emergency fund and saving for long-term goals like retirement.
By taking the time to plan ahead, you can ensure that you have the financial stability you need to make the transition to living on your own.
Do You Have Enough Money to Move Out?
Ready to take the plunge? Follow these tips to make sure you have enough money saved before moving out. Moving is a big step, but it’s definitely doable if you’re prepared. Good luck!
