How much should you save before moving out of your parent’s house? All of that new found freedom comes at a cost. We compiled the 7 most important tips to prepare and budget to live on your own.
Rent and Security Deposit
Before you begin your new home search, determine the max rent you can afford. Typically, you should divide your monthly income (average out your last 6 months of paystubs) by 3 and use that as your max rent budget. For example, if you make $3,000 monthly you should be looking to spend no more than $1,000 per month on rent. Once you have settled on an apartment, you will most likely need to make a down payment of 1st month’s rent, last month’s rent, and a security deposit. In most cases, this will total 3 months of rent. If we are using our max budget rent example above, you should expect to put down $3,000 towards your new apartment. Remember to budget for other often forgotten apartment search costs such as realtor fees, application fees, credit/background check fees, etc.
You will need to transfer / setup utilities (gas, electric, tv, phone, internet, water, etc.) in your name at your new home. Be sure to include these monthly charges in your budget. If you are unsure of what the monthly charges will be – reach out to your landlord or utility company. They should have historical data to help you budget. Remember utilities like gas or electric will fluctuate in the Summer/Winter.
Your stuff has to get from your parent’s house to your new place somehow! Take a look at your budget and consider whether you should plan for a