How to Start Saving Money to Move Out
One of the biggest milestones you experience as an adult is moving out of your parents' house. In order to successfully move out and live independently, you need more than just a couple months' rent. Moving out also comes with other routine living expenses, and this typically requires a steady income to ensure you'll be able to keep a roof over your head and cover your bills. Before you move out, it can feel like you'll never really have enough money to be confident standing on your own. It's normal to feel anxious and little uncertain about the future, but that doesn't mean you can't prepare for it. Planning ahead and saving money with these tips will help you begin to develop the skills you'll need to support yourself and live alone.
Break Your Budget into Goals
Once you know exactly how much money you'll need to move out, it's time to start actually saving. Think about your current cost of living and any money you may need in the future. Private student loans can help with expenses such as tuition and rent, food and utilities. Loans are the norm for many young adults just starting out, and they may help you move out sooner if you're a student and aren't able to work full-time and earn a decent living while you're in school. Implement S.M.A.R.T. goals into your budget. These are specific, manageable, attainable, relevant and timed. When you use this methodology, it becomes much easier to not only track your savings progress but continually motivate yourself.
Research the Cost of Living in Your Area
Where you live or desire to live has an impact on how much money you need to save before you can move out. For example, someone in New York City will need far more money in the bank than someone who lives in a small town in Oklahoma. Figure out what you can realistically afford; pragmatism is key. You may know that you can't afford your own place, so start looking at the average cost of living with a roommate. You should also explore how much you'll need to spend on utilities like WiFi and cable, food and entertainment. Professionals often recommend you spend no greater than 30 percent of your monthly income on shelter, but this isn't possible for many people. At the most, you should opt to spend no more than 50 percent of your income on shelter and save the rest for other expenses.
Consider Additional Costs
There are certain costs to moving out that you can't recover quickly. This includes application fees, security deposits and moving costs. Even if you transport your belongings yourself, you'll still have to pay for boxes, tape and bubble wrap and gas. Security deposits can range from several hundred dollars to the first and last month's rent. Most are refunded to you at the end of your lease, but some are not. You may also have to pay for pet rent if you move somewhere with a furry friend. Pet insurance and monthly supplies will also be a factor. Your car insurance, health insurance and any other payments you have to make on a regular basis should be fully incorporated into your budget before you decide to move out.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes