We are going to share thoughts on how to afford to move out on your own.
It's important to be prepared to live on your own, especially when owning your first home.
Back when we bought our first house it was very different. We both rented an apartment before but buying a house was totally different.
Even moving out into your first apartment can be stressful but these tips will help you get everything in order so you are prepared.
Feeling nervous is normal. However, you have to do the necessary planning so you can be successful.
How much can I afford for rent?
The most important thing to figure out when deciding how to afford to move out is the monthly rent or mortgage payment.
Your monthly living payment is the most significant expense you will have. Above all, you must know the exact amount you can afford so you don't run into problems in the future.
A common strategy is to not exceed 30% of your net income (take-home pay) for housing. For example, if you bring home $3,000 a month after taxes and contributions, you would need to find a place below $900. This approach would leave you with $2,100 to pay for other monthly expenses.
Most importantly, since you may be new to living on your own, it's a good idea to stay within your budget parameters.
How much does it cost to move out?
When deciding how to afford to move out, you must plan for the unexpected expenses that you normally don't have to pay when living with someone else.
Things such as food, household items, and toiletries are things to consider.
We recommend starting to save money before you move out so you can experience the increase of expenses. For example, calculate how much it will cost to live on your own and put that money in a separate savings account each month. This will give you an idea if you can afford to move out and still live comfortably.
A great place to park that money is a high-yield savings account. CIT Bank offers competitive rates and has an easy application process. Online banks offer higher rates because they save money by not having a physical location. Click here to sign up for a CIT Bank high-yield savings account.
Research the cost of utilities and rent
As many people know, rent is not the only expense when it comes to how to afford to move out on your own. You are going to have to pay for water, internet, air conditioning, heat, electricity, etc.
So, you must research the cost of utilities ahead of time so you can plan your budget accordingly. Also, these expenses can be more expensive depending on the location you choose to live in. Some areas have higher living expenses than others.
Most importantly, don't underestimate the cost of utilities because it can eat at your budget and leave you in a tough situation. This is the big reason why your living costs should not exceed 30% of your take-home pay.
In fact, living on your own can get expensive and it may be a good idea to consider getting a roommate if your rent budget is tight.
Some situations may require making adjustments to afford your new living situation.
Thing to remember, you need to purchase renters insurance when moving out on your own. This will protect you in case anything happens while renting. When owning a home, you will purchase homeowners insurance to protect your asset.
How much do I need to save before I move out?
After reading all of the above you may be feeling confident about how to afford to move out. It's time to start planning your next steps. You need to figure out how much money you need to save before you move out.
Moving is expensive and you want to be fully prepared!
Packing and moving all of your personal belongings will create an expense. However, it depends on how much stuff you have and how far your are relocating.
Buying packing boxes, tape, and renting a truck can add up.
It's important to be aware of the moving costs prior to scheduling your move date.
A great tip is to try and de-clutter and get rid of things you no longer need. This will help reduce the amount of stuff you are packing and moving.
It's common for landlords and apartment complexes to require a security deposit. Normally it's the first and last month's rent and a background fee.
The most important thing when it comes to required deposits is to give yourself enough time to prepare and have the money saved so you can move in without any issues.
Purchase Furniture and Household Items
When you move out and get your own place you will probably want new furniture. Most people don't know how expensive furniture can be.
This expense can creep up on you and crush your dreams of having all new furniture. It's fine to buy used furniture or even ask family and friends for furniture they are no longer using.
You are going to need to purchase household items when you move into your new place. That will include cleaning supplies, kitchen utensils, soap, trash bags, cooking ingredients, etc. It's a great idea to buy in bulk from places like Sam's Club or Costco.
These type of items usually cost a couple hundred dollars.
Get on a tight budget to afford to move out
Most people are living with someone else because they are saving money by paying cheaper rent. That means you should be able to save money while paying little or no rent at all.
Living with your parents does not mean you should just blindly spend your extra money. You should take advantage of the opportunity to save money. This will set you up for success when living on your own.
This is why you need to get on a budget and have a plan for your money. The more money you save, the quicker you will discover how to afford to move out on your own.
Increase your income or get a higher paying job
If you are short on money while living with someone else then you should focus on increasing your income with a side hustle or getting a higher paying job.
It will make things a lot easier on you when you have more than enough income when moving out.
There are plenty of work from home opportunities available and side hustle ideas that you can take advantage of.
For example, we decided to start our finance blog to help others learn how to manage money and it has turned into a great side hustle for us. We get to help people while making some extra side money.
Starting a blog is really easy and only takes 20 minutes to get started. Click here to check out our free email course on how to start a successful blogging business.
Having multiple streams of income is the key being successful with money. So, go ahead and focus on the income side while also decreasing expenses when you can.
Are you looking to move into your first apartment or buy your first home?