How Much Money You Should Save Before Moving Out

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Moving

Moving out of your parents’ home is a significant milestone in transitioning to adulthood. But while living by yourself grants you greater independence, it does mean you have to start paying the bills. Here is a list of expenses you should save for before moving out.

1. Rent and Deposit

Depending on the cost of living in your city, rent can range anywhere from $500 to $3000 per month. At the time of publication, the average one-bedroom apartment in Austin rents for just over $1200. Total living costs also depend on whether you choose to live by yourself or with roommates. Living with roommates is not for everyone, and it is not always easy to find compatible friends or strangers with whom to live. However, sharing housing can save you a lot of money in the long run, cutting your housing costs by half or more.

Signing a lease for an apartment also requires paying an application fee, a deposit, and in some cases, a broker’s fee (often one month’s rent in places like NYC). To rent a $1000 apartment, expect to pay at least $50-100 for the application fee and $2000 for the broker fee and deposit to the landlord.

2. Utilities

Typically, utilities are not included in rent but check the fine print of your lease agreement. Be prepared to save up funds for water, internet/cable, your cell phone bill, gas, and electricity. If you are not sharing with roommates, internet costs can be up to $70 a month. Cellphone plans can range from $20 to $200 per month depending on your calling and data usage. Gas and electricity costs vary by the season and depend on several factors. Expect to budget up to $100 per month for gas and electricity during the summer and winter months when AC and heater work overtime. According to some estimates, water costs are usually between $15 and $25 per person. If you subscribe to any other services for entertainment such as Netflix or Amazon Prime, budget the additional monthly expense.

3. Groceries and Food

For a single person, groceries can average $150-400 per month depending on where you shop and what kind of foods you buy. To save money on your food budget try cooking meals at home and purchasing nonperishables in bulk. Take into consideration that you may want to order take-out or eat out with friends occasionally. At a minimum of $10 to $15 per meal twice a week, this will cost you $20 to $30 a week, or an extra $80 to $120 a month.

4. Insurance

It is a good idea to buy renter’s insurance to cover expenses in case any damage occurs in your apartment. Renter’s insurance can cost as little as $15 a month for coverage up to $50,000. For example, if the pipes burst or the ceiling caves in, the landlord will be responsible for the repairs to the building, but the renter’s insurance covers any damages to your possessions.

If you add up all the above, these necessary expenses will cost you at least $4000 upfront to move into an apartment that costs $1000 per month. Additionally, consider other expenses like clothing, transportation, car insurance, and healthcare when planning your budget. Experts also recommend a 3-month emergency fund to hold you over if you lose your job, so have plenty saved before you move out.

Once you have the funds ready for your move, call Apple Moving to help you get moved into your new place. We are local Austin movers who have served the Austin metro area since 1991. Whether you’re moving into an apartment downtown or a condo overlooking Lady Bird Lake, our residential moving team can help you get settled into your new home quickly!

 

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