How Much Money Do I Need to Move Out? | Global Credit Union (2024)

Homeownership

1. Budgeting

Failing to set and follow a budget is one of the biggest mistakes you can make when you live on your own for the first time. One rule of thumb is to follow the 50/30/20 rule—plan to spend 50% of your income on fixed expenses such as housing, utilities, transportation and insurance, and 30% on variable expenses such as groceries, entertainment, and miscellaneous. This will leave 20% for savings and emergencies. Setting and following a solid budget will help ensure that your first years on your own get you started on solid footing.

Did You Know? One of the biggest mistakes people make when moving out on their own is not having an emergency fund. Set aside some money to handle unexpected expenses so that you don't have to rely on credit card debt to see you through.

2. Housing

Housing will likely be your biggest expense. When you move into an apartment or a house, be sure to account for the extra expenses that go with the monthly rent. These include application fees, security deposits, first and last month's rent (if required), and other expenses such as parking or pet fees. If the place you want to rent is unfurnished, you'll need to get furniture and other necessities such as bed linens, towels, cookware, and other kitchen items.

Did You Know? Be sure to take photos to document the condition of the apartment or rental unit before moving in. If there are pre-existing stains in the carpet, cracked windows, dents in the walls or other issues, make sure to bring it to the attention of your leasing agent or landlord, so that you aren't held responsible for the damage when you move out.

3. Utilities

While utilities could be included in your rent, many times they are not. Be sure to ask about the cost of water, gas, electricity, and garbage; the landlord or rental agency should be able to give you a good idea of how much these will be each month. Don't forget to include the cost of your cable or internet service, as well as money needed to purchase your router and modem, if needed.

4. Groceries and household

Set aside money to stock up on staples such as condiments, spices and other items for your pantry, then count on weekly grocery bills that range from $50 to $100 per person. You'll also need to budget for everyday household items like cleaning supplies, light bulbs, toilet paper, and personal items such as soap and shampoo.

5. Transportation

If you have your own car, count the cost of vehicle registration and licensing fees, as well as maintenance such as oil changes and tire rotations into your budget. Be sure to also set aside money to cover larger expenses such as new brakes or tires or major repairs. If you use ride-sharing services to get around town, set a budget for this as well.

6. Insurance

People rarely realize the importance of insurance until it is needed. You'll need renters insurance to protect yourself from loss due to fire, flood or burglary. Car insurance is required in most states, and now may be a good time to review your insurance needs with a broker who can help you find the right insurance at the best price.

7. Entertainment

Much of the fun of living on your own includes getting to go out when you like. But expenses for things like dining out, movies, and vacation travel can add up quickly, as can monthly subscriptions for online streaming services. Be realistic when deciding how much you'll spend for entertainment.

8. Miscellaneous

Your decision to move out may mean that the cost of your cell phone is no longer included in your family’s plan. Also consider the costs of clothing and dry cleaning, gym memberships, pet food and vet bills, and other expenses.

9. Savings

While savings appears last on this list, it should be a top priority. If your job includes participation in a 401(k) or other savings program, budget enough money to take full advantage of any matching funds from your employer.

How Much Money Do I Need to Move Out? | Global Credit Union (2024)

FAQs

How much money should I have saved before moving out? ›

To help you get a good plan in place and make your dream a reality, keep reading. Before moving out, ideally save six months' worth of living expenses, though some manage with less. Calculate all potential upfront and ongoing costs to ensure affordability.

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Is $5000 enough to move out? ›

While $5,000 can be a good starting point, it's crucial to have a clear understanding of the costs associated with moving out and living independently. To determine if $5,000 is sufficient, you'll need to consider several key aspects: The cost of living in your desired area. Upfront moving expenses.

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How much money should you have to move out of state? ›

Start with two months of living expenses to account for the time it takes to move and any possible time off of work you may be taking. Be sure to include mortgage or rent, utilities, food, transportation, housing, insurance, and car payments and other bills.

Is 20k enough to move out? ›

In short, no. Having $20k saved up to move out is ideal, it gives you extra cash for deposits and whatever else you might need. However, you cannot intend to live on $20,000. To give you a different idea about how much that is, that averages about $9 an hour, which is hard to live on.

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Is $4000 enough to move out? ›

In general, you should have at least three months' worth of living expenses saved up as emergency funds just in case something unexpected happens during your move. For example, if you're planning on renting an apartment for $1,200 per month, then you'll need about $4,000 in savings before moving out.

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Is $12,000 enough to move out? ›

To ensure that you're financially prepared for this significant transition, a common rule of thumb says you should save on average between $5,000 and $12,000 before moving out, depending on where you are moving to and the cost of living.

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How much do you really need to move out? ›

A good rule of thumb is that your monthly income should be three times what you spend on rent. If it's possible, have a few months' worth of expenses saved up before moving out to provide extra security. Take into account the different ways costs might add up and ask yourself: How much money do you need to move out?

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Is $6,000 enough to move? ›

You should generally save between $6,000 and $12,000 before moving out. You'll need this money to find a place to live inside, purchase furniture, cover moving expenses, and pay other bills.

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What state pays you to relocate to 10000? ›

Florence, Muscle Shoals, Sheffield and Tuscumbia, Alabama

Remote Shoals is a program that will pay you up to $10,000 to relocate to the Florence-Muscle Shoals MSA in Northwest Alabama, a region called The Shoals.

Can I move out without savings? ›

It's generally advisable to have a substantial savings cushion before moving out to cover initial expenses and provide a financial safety net. However, starting with a small cushion and a well-planned budget can be a viable option if you have a stable income and are confident in your ability to manage expenses.

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How do you calculate how much you need to move out? ›

The right number is different for every person. But here's a general rule of thumb: Calculate monthly net income (income after taxes) and see if you will need to spend 20%, 30% or 40% of your take-home pay on rent.

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What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

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How much money should I have saved before getting an apartment? ›

How much should you save up for an apartment? As a general rule, you should have at least three times your rent saved before moving into a new apartment. That means that if you're looking to rent an apartment that's $1,200 per month, you should have at least $3,600 saved for rent.

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How much money should I have saved by 25? ›

“Ideally, your savings should reach $20,000 by the time you turn 25,” says Bill Ryze, a certified Chartered Financial Consultant (ChFC) and board advisor at Fiona. The national average for Americans between 25 and 30 years of age is $20,540.