The time has come for you to pack up your stuff and move out of your childhood bedroom. Before you head out on your own, you need to be sure that you can afford it. Moving out brings with it a lot of extra expenses. The total amount you will need to save to move out depends on the cost of rent where you are moving, how much stuff you need to purchase for your new place and whether you hire professionals to help out.
Getting your ducks in a row to rent a house or apartment can get pricey quickly. You not only need to have enough money to cover the first month's rent, you also need money for a deposit and last month's rent. The security deposit is usually the same amount as a month's rent, meaning you need at least three months rent to start. The landlord also might charge an application fee, which can be between $25 and $50. In some areas, you might also need to hire a broker to help you find an apartment in the first place, which can cost another month's worth of rent upfront.
Your moving expenses can be low, if you use your own vehicle, rely on the help of your friends and recycle boxes and packaging supplies. Depending on where you are moving, your expenses can climb pretty high. According to "Kiplinger," if you hire a moving company to pack up and move for you, the cost is around $100 for every 100 pounds of stuff you own. Moving during the off season, between October and April, can help you save up to 10 percent, according to "Kiplinger."
Furniture and Housing Needs
You don't want your first place to be completely bare. Save some money to purchase furniture, from a couch to a bed, for your new home. You might be able to find inexpensive furniture from a discount store or thrift shop, meaning you could furnish a new place for less than $1,000. According to a poll conducted by "My First Apartment," the average person spent between $500 and $1,000 to furnish a new place. The cost drops even more if family members are able to donate old but still usable furniture. Don't forget to save money for possible utility company deposits, which can be up to $100 per utility company. Many places also require you to have renter's insurance, another expense that can vary by location and the amount of stuff you have.
Set some money aside before you move out in case anything goes wrong. Your emergency fund provides financial cushion in case an unexpected cost crops up or you have difficulty finding a job. Have an emergency fund with at least three months worth of expenses to get started. As you continue to live on your own, you might want to increase in the amount in your emergency fund to at least six months' worth of expenses.
- Kiplinger: Seven Sins of First Time Renters
- Oh My Apt: Don't Go Broke From Application Fees
- My First Apartment: How Much Do I Need to Save Before Moving?
- Kiplinger: 5 Cost-Saving Tips for Moving Time
- Kiplinger: Only the Beginning
- Bankrate: How Big Should Your Emergency Fund Be?
- Fidelity Investments: Why Everyone Needs an Emergency Fund?
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