These days, young adults are preferring to live with their parents rather than moving out and giving a kick start to the journey of success. According to statistics, in 2015, a third of the total population age under 18 to 34 is living under their parent’s roof. There are a lot of varying reasons behind it but the biggest one is the cost needed to move out. Of course, you don’t need a small chunk of money to make this big decision.
You might be the one who falls under this age group and wants to move out from their parent’s home. If yes, this content will help you to know how much money do you need to move out?
Careful savings and the planning are the two most important factors that are needed to have a successful move out even when if you are moving into cities, still, you need to plan. You always have to start from a point to begin the budgeting process. The first thing you should consider is the moving cost. Here is a list of costs that you should consider before you move out.
Accommodation is the basic need when you plan to move out. Figure out how much rent you can afford to pay. Consider this thumb rule, no more than 30% of your earnings should go in the home rental if you want to live a happy and satisfied life. Don’t find an accommodation that makes you go out of your budget, it will later create a big problem for you.
Getting the right apartment
It becomes a little bit trickier to get an estimate when you choose to take into account other things such as the cost spent to get an apartment. There are many things that usually people forget to consider while estimating to move out. The exact cost of getting the apartment varies based on various factors such as the policies created by the landlord.
Include things such as:
- Rental application fee
- Security deposit
- Rent of first and last month
- Non-refundable move-in fee
These are the things that you should also add in your estimation while estimating the total cost of moving out. However, these are the things that vary depends upon the rules and regulations of your chosen apartment like in many cases, the owner asks for refundable security fee while in other cases, you have to pay the non-refundable move-in fee.
Moving cost is again one of the biggest factors that you have to consider. Consider all the costs from packing supplies cost to the transportation costs. When it comes to moving, there are plenty of cheap moving companies are available in the market that claims to deliver quality services. It is your responsibility to get the best company out of all the companies.
If you have less furniture and other belongings then the cost of transportation would be less. You should also consider factors such as missed payments if you have to miss one or two days of the job to pack all your belongings.
On top of that, you should also consider the cost of renting storage space if there is a need.
Of course, there are some utilities that you even need on the first day of your new home. However, your landlord might provide you a few utilities as monthly rent but for some, you have to pay charges on your own. Therefore, you should also have to consider the cost of these utilities.
- Electricity: Consider the electricity bill including air conditioner cost and without AC as per your preferences.
- Gas: Although gas is not super expensive you also have to include this utility as this is the basic need to cook your food.
- Heating: However, the cost of heating depends upon the type of heating you use in your home. Gas heating is cheaper as compared to electric heating.
- Renter’s insurance: It is always a great idea to have renter insurance whether it can increase the cost of the rent. Luckily, it is cheaper. You can find good plans at a very low cost.
However, the cost of one utility can be lower but the total cost of utilities will make a big amount that you have to pay.
So, are you ready to move out?
However, it might be little discouraging to consider all these costs as you might have not considered a few of these. But it is always a better option to plan wisely so that you need not move backward in your life for any step that you take in your life as forward. Planning is the key to success. So, plan well and make a decision that helps you to get a successful, satisfied and happier life.