Last year, in an effort to tell myself that I’m one of those people who can manage more than one blog at a time, I started an independent living blog. The purpose of that site was to help people moving out on their own for the first time figure out their finances and what they really need so they didn’t end up in the same position that I did. Broke and in debt with no clue what to do next.
I’m not sure if I’m going to make this a series or just a general topic (if you have any input on this, it’s very welcomed) but for now, I’m just going to have it as a regular topic.
Figuring out how much money you need to move out on your own is pretty tricky. There’s not a set formula for everyone. You need to take into consideration where you’re living or moving to, how big (or small) of a place you’re going to want, what amenities you can and can’t live without…all of these factor into how much money you’re going to need.
To get a rough estimate of how much money is required for your first place, it’s best to do some research (note: these figures are for living in an apartment/house. If your first place is a dorm room, that’s a whole separate post and I promise we’ll cover that). Doing your research will give you a rough estimate of how much you need to save.
For instance, you’ll want learn about:
- Average cost of rent—This is going to vary based on what you want in an apartment/house, but a cursory search of available apartments will give you a ballpark figure for rent in your area. If the average cost of rent is $800/month, then you know you’ll want to save at least $800 to cover the first month of rent. It’s also important, during this step, that you research if a security deposit or if first and last month’s rent is required when you move in. If so, you’ll also want to save this amount.
- Renter’s insurance—Just like homeowner’s insurance is important, so is renter’s insurance. You never know what can go wrong in an apartment. For instance, one of my apartments was burglarized. I filed a claim with my renter’s insurance to cover the cost of the stolen items. Talk to an insurance agent or do some online research to find out how much a yearly policy would cost. Save that money or figure out how to incorporate it into your monthly budget.
- Utilities—When you’re looking for an apartment, it’s important to know what, if any, utilities are included in your rent. Is it just heat and hot water? How about cable or internet? It’s important for you to do some research on the average cost of utilities like electricity and internet, as well as the cost of hooking up the services. Where I live, it costs about $50 to have electricity turned on in an apartment. You’ll want to find out the connection fees and save that as well.
- Furniture—No matter where you live, you’re going to need, at the bare minimum a bed, a table and chairs, and a couch. How much are they going to cost. Look on Craigslist, Freecycle. Go to yard sales. Talk to family members to see if they have furniture they’re willing to part with. Doing this upfront research will give you a rough estimate of how much money you’re going to need to spend on furniture. If you’re not willing to go the hand-me-down or used route (which I don’t suggest for a bed), go to some furniture stores and price the pieces. Add this money into your “moving out” account.
- Groceries—Stocking a pantry and fridge when you first move into a place can be expensive. I figure it would cost me around $400 to fill my pantry and fridge with staples. If I had to pick a ballpark figure for someone planning to move out, that’s the amount I would suggest saving to do your first grocery run. However, this figure will vary based on your eating habits, food preferences and cooking ability.
- Miscellaneous—As a guideline, I would suggest saving about $300 or so for miscellaneous items like cleaning supplies, garbage cans, shower curtains, dishes, silverware…pretty much everything that goes into running a home.
When you get into setting up your own place, you’re going to incur a lot of costs. We’ll talk about those costs when we talk about setting up a budget. But for now, focus on getting information together so you know how much money, at a minimum, will be necessary to start a month in your own place. However, if you feel that you must start saving, open up a savings account, preferably a high yield savings account, and just start socking money away for when you’re ready. Can’t hurt to be prepared!
Leslie says
The actual cost of moving should be considered as well. Whether you’re spending gas by making multiple car trips or buying pizza for your friends who are helping or paying for movers, these costs can add up quickly.
I would not worry about miscellaneous expenses as they can be made over time and do not need to be made immediately. You can go without a wastebasket and a dish strainer for a month.
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Tanya says
You also have to factor in a moving truck or at least gas for the friend’s truck that you borrowed.(if you already own your own furniture) That is a huge expense in moving. Even more if you moving out of state.
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Christian L. says
Jana,
To help with these costs, I’d have a yard/garage sale. I have too much stuff and I’d rather make a few bucks selling it than trying to travel with it.
-Christian L. @ Smart Military Money
Pauline says
The first move is often pretty expensive since you have to buy everything, although many stores deliver for free and you can save on the size of the van. On the first days if you don’t have cutlery or your kitchen set up it is likely that you will eat out, adding to the costs. The taxes on garbage collection and street cleaning were the tenant’s responsibility where I rented.
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Nunzio Bruno says
Research is so important! My first job out of grad school was when I went out on my own – mostly because the college frowned on people living there that weren’t students anymore. I did no planning and was in Boston, I paid such a huge premium for not planning! Since then I don’t leave anything to chance and encourage people to do exactly what your post is about. Great post and really important advice.
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Jules@Faithful With a Few says
This info will be passed along to my brother. He is about to make this big move and I feel this will help him out tremendously because I don’t think he is thinking everything through!
Michelle says
My friend recently bought a house, and she had never lived on her own before. She had no idea of all of the expenses. I wish she would have read a post like this beforehand!
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Charlene Holland says
Amazing tips. I am going to rent an apartment. Now I see how important is to calculate everything. I am planning my budget 2 months earlier. It is not enough, though. Thank you for sharing your article. Best regards!
Amanda Pettit says
This is so impressive. Honestly also a well written article packed full of information and details. Thank you for sharing appreciated.