Budgeting

Is $5000 Enough To Move Out?

Is $5,000 enough to move out? When is the best time to move out? How can I easily calculate all the costs and expenses required to move? These are all questions you may ask yourself if you are thinking about moving. 

While there is not an exact appropriate age at which young adults should move out, the median age is usually sometime in their 20s. Whether you are a young adult moving out of your parents’ house for the first time or a someone looking to make another move, you are probably concerned about how much the process is going to cost. 

If you have $5,000 set aside to move out, you don’t necessarily have to worry about moving on a tight budget. Regardless, you should still make sure you are spending your money wisely. Keep reading for more information on how much it costs to move and how you can save money while moving!

How Much Money Should I Have Saved When I Move Out?

How do you know if you can afford to move out? That depends on circumstances like where you are moving and what your current financial situation is. For example, if you are moving down the street from where you currently live, you will not need the same amount of money as you would if you were moving out of town. Before deciding to move out, ask yourself questions like: 

  • Do I have a secure job giving me enough current cash flow to cover living expenses and moving costs?
  • How much rent or mortgage payments can I afford each month?
  • Do I need to purchase any additional furniture or appliances?
  • Can I afford to pay more for other bills and expenses like internet, utilities, phone bill, etc.?
  • Will I need to take time off work to move? If so, can I afford it?

After you consider all these questions, you should have a pretty good idea of how much money you will need to move and live comfortably. 

Moving Expenses To Consider Before Moving Out

The moving process can get expensive, so make sure you have enough monthly take-home pay set aside to cover all your initial expenses. 

Time off Work

Moving out is an involved process, which means you may have to take some time away from work to focus on the move. Before committing to a hard move-in date, make sure you have enough monthly income to cover your expenses. If you do not have paid personal or vacation days to use at work, you may want to create a budget with your irregular income to know exactly how much you will need. 

Security Deposit or Down Payment 

Before moving in, landlords or homeowners almost always expect a security deposit or a down payment. Make sure you have enough money to cover these initial costs. 

A security deposit is a lump sum, usually the equivalent of one months rent, given to a landlord at the beginning of a renter’s lease. If the renter takes good care of the landlord’s property, the renter can usually get their security deposit back when they move out. 

A down payment is a lump sum of money homebuyers pay when they purchase a house. The amount of a down payment is typically a certain percentage of the property’s total price. Unlike a security deposit, homeowners do not receive their down payment back when they move out, as the money is considered a partial payment for the property. 

Furniture and Appliances

You also want to think about the furniture and appliances you will need. If you are moving out of a rental and cannot take appliances like the refrigerator, dishwasher, or stovetop oven, you might need to purchase these items once you move. Also, if you are moving into a bigger place, you may need extra furniture. While you can always take out a furniture loan, it may be a good idea to set money aside to purchase new things.

Living Expenses To Consider Before You Move Out

Moving expenses are not the only thing you should budget for when you move. You should also consider regular living expenses you will need to take care of. To avoid feeling overwhelmed by expenses, make sure you have enough monthly income to cover everything to live on your own. 

Make Sure You Can Afford To Pay Rent or a Mortgage 

One of your most important bills is going to be your monthly rent or mortgage payment. To keep a roof over your head, you need to make sure you can afford these essential payments. If you are an adult moving to a different location, you should be able to gauge how well you can afford rent or mortgage payments based on what you were paying before. But, if you are moving out for the first time, paying rent or a mortgage is a totally new experience. If this is your situation, you may want to talk to your parents or the people you are currently living for advice on affording housing costs. 

Stay On Top of Other Monthly Bills

Remember that once you move, you will still have all your other regular bills and payments to stay on top of. On top of your rent or mortgage, other living expenses you should keep in mind are: 

  • General grocery costs.
  • Credit card payments/credit card debt (if you are an account holder). 
  • Student debt, if applicable. 
  • Car insurance, if you own a car. 
  • Phone bill. 
  • Utilities. 
  • Internet/cable. 
  • Any existing medical bills. 
  • Renter’s insurance, or homeowners insurance. 

Ways To Save Money on Moving Costs

Moving can get expensive. Consider some of these cost-saving methods so you can move out without having to break the bank. 

Ask Friends for Help

To save money on movers, enlist friends or family members to help you with your move. Most people understand the stress and expenses associated with moving and are usually willing to help alleviate that burden. While you don’t have to pay the friends or family members who help you move, it may be a nice gesture of appreciation to purchase food or drinks after the moving work is done! 

Move in Installments

If you have enough time and space, try moving in small installments instead of all at once. You can save money simply dropping off items to your new home in small batches when you have the time. Perhaps your new home is on your regular commute, and you can drop items off on your way to work or while out running errands! 

Get a Roommate

Those who are living on minimum wage or less may find it helpful to live with a roommate. If you live a very private personal life style, a roommate may be a difficult adjustment for you. But, if you are willing to share your space with another person, you can save hundreds or even thousands of dollars a month by living with a roommate. 

To find a roommate who is a good fit, try asking friends or family members if they know anyone looking for a room. There are also websites dedicated to matching people with roommates based on questionnaires and surveys about your habits, preferences, and general lifestyle. 

How To Afford To Move Out

Looking for other ways to help you afford to move out? Check out the helpful tips below! 

Try a Loan

If you need a few hundred or a few thousand dollars fast, your best bet may be to get a personal installment loan for moving. Research a few lenders for personal loans to find out which one is best for you. You want to find a lender that offers competitive rates, flexible terms, and top-notch customer service. Try to stay away from unreliable options like fast payday loans online, as they can worsen your financial situation. 

Dip Into Your Savings or Emergency Fund

If you don’t want to take out a loan, try dipping into an emergency fund for extra money. While you don’t want to drain your emergency fund completely, it may be a good idea to use a portion of it for necessary moving or living costs or to handle unanticipated expenses. Using your own money helps you save on application fees, origination fees, interest rates, and other loan costs. 

Have a Garage Sale

Before you move, it may be helpful to have a garage sale in order to have some extra money set aside for moving. While you pack up your belongings, set aside the things you no longer want or use often. You may find you are able to earn all the money you need to move just by selling unwanted items!

Create a Budget

When living on your own, it is important to keep your finances organized and keep track of how you spend money. Knowing all your necessary expenses can put your finances into perspective. Which can help you know how much extra income you may have each month. Being familiar with your budget allows you to live comfortably without fear of accidentally overspending.